16 USC 825c

Page 1307

TITLE 16—CONSERVATION

ing, may determine by order the accounts in
which particular outlays and receipts shall be
entered, charged, or credited. The burden of
proof to justify every accounting entry questioned by the Commission shall be on the person
making, authorizing, or requiring such entry,
and the Commission may suspend a charge or
credit pending submission of satisfactory proof
in support thereof.
(b) Access to and examination by the Commission
The Commission shall at all times have access
to and the right to inspect and examine all accounts, records, and memoranda of licensees and
public utilities, and it shall be the duty of such
licensees and public utilities to furnish to the
Commission, within such reasonable time as the
Commission may order, any information with
respect thereto which the Commission may by
order require, including copies of maps, contracts, reports of engineers, and other data,
records, and papers, and to grant to all agents of
the Commission free access to its property and
its accounts, records, and memoranda when requested so to do. No member, officer, or employee of the Commission shall divulge any fact
or information which may come to his knowledge during the course of examination of books
or other accounts, as hereinbefore provided, except insofar as he may be directed by the Commission or by a court.
(c) Controlling individual
The books, accounts, memoranda, and records
of any person who controls, directly or indirectly, a licensee or public utility subject to the
jurisdiction of the Commission, and of any other
company controlled by such person, insofar as
they relate to transactions with or the business
of such licensee or public utility, shall be subject to examination on the order of the Commission.
(June 10, 1920, ch. 285, pt. III, § 301, as added Aug.
26, 1935, ch. 687, title II, § 213, 49 Stat. 854.)
§ 825a. Rates of depreciation; notice to State authorities before fixing
(a) The Commission may, after hearing, require licensees and public utilities to carry a
proper and adequate depreciation account in accordance with such rules, regulations, and forms
of account as the Commission may prescribe.
The Commission may, from time to time, ascertain and determine, and by order fix, the proper
and adequate rates of depreciation of the several
classes of property of each licensee and public
utility. Each licensee and public utility shall
conform its depreciation accounts to the rates
so ascertained, determined, and fixed. The licensees and public utilities subject to the jurisdiction of the Commission shall not charge to
operating expenses any depreciation charges on
classes of property other than those prescribed
by the Commission, or charge with respect to
any class of property a percentage of depreciation other than that prescribed therefor by the
Commission. No such licensee or public utility
shall in any case include in any form under its
operating or other expenses any depreciation or
other charge or expenditure included elsewhere

§ 825c

as a depreciation charge or otherwise under its
operating or other expenses. Nothing in this section shall limit the power of a State commission
to determine in the exercise of its jurisdiction,
with respect to any public utility, the percentage rate of depreciation to be allowed, as to any
class of property of such public utility, or the
composite depreciation rate, for the purpose of
determining rates or charges.
(b) The Commission, before prescribing any
rules or requirements as to accounts, records, or
memoranda, or as to depreciation rates, shall
notify each State commission having jurisdiction with respect to any public utility involved,
and shall give reasonable opportunity to each
such commission to present its views, and shall
receive and consider such views and recommendations.
(June 10, 1920, ch. 285, pt. III, § 302, as added Aug.
26, 1935, ch. 687, title II, § 213, 49 Stat. 855.)
§ 825b. Requirements applicable to agencies of
United States
All agencies of the United States engaged in
the generation and sale of electric energy for ultimate distribution to the public shall be subject, as to all facilities used for such generation
and sale, and as to the electric energy sold by
such agency, to the provisions of sections 825
and 825a of this title, so far as may be practicable, and shall comply with the provisions of
such sections and with the rules and regulations
of the Commission thereunder to the same extent as may be required in the case of a public
utility.
(June 10, 1920, ch. 285, pt. III, § 303, as added Aug.
26, 1935, ch. 687, title II, § 213, 49 Stat. 855.)
§ 825c. Periodic and special reports; obstructing
filing reports or keeping accounts, etc.
(a) Every licensee and every public utility
shall file with the Commission such annual and
other periodic or special reports as the Commission may by rules and regulations or order prescribe as necessary or appropriate to assist the
Commission in the proper administration of this
chapter. The Commission may prescribe the
manner and form in which such reports shall be
made, and require from such persons specific answers to all questions upon which the Commission may need information. The Commission
may require that such reports shall include,
among other things, full information as to assets and liabilities, capitalization, net investment, and reduction thereof, gross receipts, interest due and paid, depreciation, and other reserves, cost of project and other facilities, cost
of maintenance and operation of the project and
other facilities, cost of renewals and replacement of the project works and other facilities,
depreciation, generation, transmission, distribution, delivery, use, and sale of electric energy.
The Commission may require any such person to
make adequate provision for currently determining such costs and other facts. Such reports
shall be made under oath unless the Commission
otherwise specifies.
(b) It shall be unlawful for any person willfully
to hinder, delay, or obstruct the making, filing,

§ 825d

TITLE 16—CONSERVATION

or keeping of any information, document, report, memorandum, record, or account required
to be made, filed, or kept under this chapter or
any rule, regulation, or order thereunder.
(June 10, 1920, ch. 285, pt. III, § 304, as added Aug.
26, 1935, ch. 687, title II, § 213, 49 Stat. 855.)
§ 825d. Officials dealing in securities
(a) Benefits; making or declaring dividends out
of capital account
It shall be unlawful for any officer or director
of any public utility to receive for his own benefit, directly or indirectly, any money or thing of
value in respect of the negotiation, hypothecation, or sale by such public utility of any
security issued or to be issued by such public
utility, or to share in any of the proceeds thereof, or to participate in the making or paying of
any dividends of such public utility from any
funds properly included in capital account.
(b) Interlocking directorates
(1) In general
After 6 months from August 26, 1935, it shall
be unlawful for any person to hold the position
of officer or director of more than one public
utility or to hold the position of officer or director of a public utility and the position of
officer or director of any bank, trust company,
banking association, or firm that is authorized
by law to underwrite or participate in the
marketing of securities of a public utility, or
officer or director of any company supplying
electrical equipment to such public utility,
unless the holding of such positions shall have
been authorized by order of the Commission,
upon due showing in form and manner prescribed by the Commission, that neither public nor private interests will be adversely affected thereby. The Commission shall not
grant any such authorization in respect of
such positions held on August 26, 1935, unless
application for such authorization is filed with
the Commission within sixty days after that
date.
(2) Applicability
(A) In general
In the circumstances described in subparagraph (B), paragraph (1) shall not apply to a
person that holds or proposes to hold the positions of—
(i) officer or director of a public utility;
and
(ii) officer or director of a bank, trust
company, banking association, or firm authorized by law to underwrite or participate in the marketing of securities of a
public utility.
(B) Circumstances
The circumstances described in this subparagraph are that—
(i) a person described in subparagraph
(A) does not participate in any deliberations or decisions of the public utility regarding the selection of a bank, trust company, banking association, or firm to underwrite or participate in the marketing of
securities of the public utility, if the per-

Page 1308

son serves as an officer or director of a
bank, trust company, banking association,
or firm that is under consideration in the
deliberation process;
(ii) the bank, trust company, banking association, or firm of which the person is an
officer or director does not engage in the
underwriting of, or participate in the marketing of, securities of the public utility of
which the person holds the position of officer or director;
(iii) the public utility for which the person serves or proposes to serve as an officer or director selects underwriters by
competitive procedures; or
(iv) the issuance of securities of the public utility for which the person serves or
proposes to serve as an officer or director
has been approved by all Federal and State
regulatory agencies having jurisdiction
over the issuance.
(c) Statement of prior positions; definitions
(1) On or before April 30 of each year, any person, who, during the calendar year preceding the
filing date under this subsection, was an officer
or director of a public utility and who held, during such calendar year, the position of officer,
director, partner, appointee, or representative of
any other entity listed in paragraph (2) shall file
with the Commission, in such form and manner
as the Commission shall by rule prescribe, a
written statement concerning such positions
held by such person. Such statement shall be
available to the public.
(2) The entities listed for purposes of paragraph (1) are as follows—
(A) any investment bank, bank holding company, foreign bank or subsidiary thereof doing
business in the United States, insurance company, or any other organization primarily engaged in the business of providing financial
services or credit, a mutual savings bank, or a
savings and loan association;
(B) any company, firm, or organization
which is authorized by law to underwrite or
participate in the marketing of securities of a
public utility;
(C) any company, firm, or organization
which produces or supplies electrical equipment or coal, natural gas, oil, nuclear fuel, or
other fuel, for the use of any public utility;
(D) any company, firm, or organization
which during any one of the 3 calendar years
immediately preceding the filing date was one
of the 20 purchasers of electric energy which
purchased (for purposes other than for resale)
one of the 20 largest annual amounts of electric energy sold by such public utility (or by
any public utility which is part of the same
holding company system) during any one of
such three calendar years;
(E) any entity referred to in subsection (b);
and
(F) any company, firm, or organization
which is controlled by any company, firm, or
organization referred to in this paragraph.
On or before January 31 of each calendar year,
each public utility shall publish a list, pursuant
to rules prescribed by the Commission, of the
purchasers to which subparagraph (D) applies,