Laserfiche WebLink
<br />16 U.S.C. 825s, which directs the sale of Federal power "in sllch <br />manner ~s to encourage the most widespread use thereof," requires <br />Western'to allocate power to those municipalities. Another entity <br />representing public utilities stated that the Second Circuit Court of <br />Appeals:, in Power Authority of the State of New York v. FERC, 743 F.2d <br />93 (2d Cir. 1984), found that the Federal preference extends only to <br />entitie~ which have assumed full utility responsibility. <br /> <br />One question raised by a municipality may have relevance to potential <br />new customers seeking to acquire utility responsibility for the <br />post-1ge9 period. The question was whether the lease of distribution <br />facilities, in lieu of ownership, would be adequate to qualify for an <br />allocation. The proposal suggested that the city was interested in <br />executing a long-term lease with the local IOU for the use of its <br />facilities. The city would contract with Western for a direct <br />allocation of energy and negotiate supplementary agreements with other <br />suppliers. The city would perform the routine operational functions, <br />such aSimeter reading, as well as accounting and billing functions. <br />Western'determined that public ownership of a distribution system is a <br />prerequisite to satisfy eligibility requirements for allocations of <br />Federal :power under these criteria. <br /> <br />Our review of the Second Circuit Court of Appeals case did not <br />disclose any language clearly addressing the issue of whether only <br />entities assuming full utility responsibility are entitled to <br /> <br />15 <br />