TVA Act - Sections 10 and 11, power sales

From the TVA Act of 1933
Section 10
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 and 118 Stat. 2966, 16 U.S.C. sec. 831i]

From the TVA Act of 1933
Section 11
Sec. 11. It is hereby declared to be the policy of the Government so far as practical
to distribute and sell the surplus power generated at Muscle Shoals equitably among the
States, counties, and municipalities within transmission distance. This policy is further
declared to be that the projects herein provided for shall be considered primarily as for
the benefit of the people of the section as a whole and particularly the domestic and rural
consumers to whom the power can economically be made available, and accordingly that
sale to and use by industry shall be a secondary purpose, to be utilized principally to
secure a sufficiently high load factor and revenue returns which will permit domestic and
rural use at the lowest possible rates and in such manner as to encourage increased
domestic and rural use of electricity. It is further hereby declared to be the policy of the
Government to utilize the Muscle Shoals properties so far as may be necessary to
improve, increase, and cheapen the production of fertilizer ingredients by carrying out the
provisions of this Act. [48 Stat. 65, 16 U.S.C. sec. 831j]