TVA Act, section 10

From the TVA Act of 1933
Sec. 10. The board is hereby empowered and authorized to sell the surplus power not used in its
operations, and for operation of locks and other works generated by it, to States, counties,
municipalities, corporations, partnerships, or individuals, according to the policies hereinafter set
forth; and to carry out said authority, the board is authorized to enter into contracts for such sale
for a term not exceeding twenty years, and in the sale of such current by the board it shall give
preference to States, counties, municipalities, and cooperative organizations of citizens or
farmers, not organized or doing business for profit, but primarily for the purpose of supplying
electricity to its own citizens or members; Provided, That all contracts made with private
companies or individuals for the sale of power, which power is to be resold for a profit, shall
contain a provision authorizing the board to cancel said contract upon five years’ notice in
writing, if the board needs said power to supply the demands of States, counties, or
municipalities. In order to promote and encourage the fullest possible use of electric light and
power on farms within reasonable distance of any of its transmission lines the board in its
discretion shall have power to construct transmission lines to farms and small villages that are
not otherwise supplied with electricity at reasonable rates, and to make such rules and
regulations governing such sale and distribution of such electric power as in its judgment may be
just and equitable: Provided further, That the board is hereby authorized and directed to make
studies, experiments, and determinations to promote the wider and better use of electric power
for agricultural and domestic use, or for small or local industries, and it may cooperate with State
governments, or their subdivisions or agencies, with educational or research institutions, and
with cooperatives or other organizations, in the application of electric power to the fuller and
better balanced development of the resources of the region: Provided further, That the board is
authorized to include in any contract for the sale of power such terms and conditions, including
resale rate schedules, and to provide for such rules and regulations as in its judgment may be
necessary or desirable for carrying out the purposes of this Act, and in case the purchaser shall
fail to comply with any such terms and conditions, or violate any such rules and regulations, said
contract may provide that it shall be voidable at the election of the board: Provided further, That
in order to supply farms and small villages with electric power directly as contemplated by this
section, the board in its discretion shall have power to acquire existing electric facilities used in
serving such farms and small villages: And provided further, That the terms “States,” “counties,”
and “municipalities” as used in this Act shall be construed to include the public agencies of any
of them unless the context requires a different construction. [48 Stat. 64, as amended by 49 Stat.
1076, 16 U.S.C. sec. 831i]