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Title 16 — ConservationRelease 119-73

§831k Transmission lines; construction or lease; sale of power over other than Government lines; rates when sold for resale at profit

Title 16 › Chapter CHAPTER 12A— - TENNESSEE VALLEY AUTHORITY › § 831k

Last updated Apr 6, 2026|Official source

Summary

The Board may use money from Congress, from selling power, or from bonds to build, lease, buy, or allow building of transmission lines close to where power is made and to connect with other systems. The Board can also lease its own transmission lines to others so long as the lease does not get in the way of the Board’s use. If a state, county, town, or a nonprofit public or cooperative group that serves its members builds and keeps a proper line to a government power plant site or to a main Board line, the Board must offer a power contract to them for up to 30 years and give them enough time to meet local legal requirements. All contracts with municipalities or similar groups must require selling power to customers of the same kind without unfair deals; the Board can cancel the contract if unfair rates or rebates are given. For any leftover power not sold to those public or cooperative groups, the Board may sell to for‑profit distributors only if they agree to resell to final customers at prices that do not exceed the Board’s set schedule; the Board can void the sale if customers are overcharged. The Board may also make agreements with other power systems to swap unused power to save water or to help in emergencies.

Full Legal Text

Title 16, §831k

Conservation — Source: USLM XML via OLRC

In order to place the Board upon a fair basis for making such contracts and for receiving bids for the sale of such power, it is expressly authorized, either from appropriations made by Congress or from funds secured from the sale of such power, or from funds, secured by the sale of bonds hereafter provided for, to construct, lease, purchase, or authorize the construction of transmission lines within transmission distance from the place where generated, and to interconnect with other systems. The Board is also authorized to lease to any person, persons, or corporation the use of any transmission line owned by the Government and operated by the Board, but no such lease shall be made that in any way interferes with the use of such transmission line by the Board: Provided, That if any State, county, municipality, or other public or cooperative organization 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, or any two or more of such municipalities or organizations, shall construct or agree to construct and maintain a properly designed and built transmission line to the Government reservation upon which is located a Government generating plant, or to a main transmission line owned by the Government or leased by the Board and under the control of the Board, the Board is authorized and directed to contract with such State, county, municipality, or other organization, or two or more of them, for the sale of electricity for a term not exceeding thirty years; and in any such case the Board shall give to such State, county, municipality, or other organization ample time to fully comply with any local law now in existence or hereafter enacted providing for the necessary legal authority for such State, county, municipality, or other organization to contract with the Board for such power: Provided further, That all contracts entered into between the Corporation and any municipality or other political subdivision or cooperative organization shall provide that the electric power shall be sold and distributed to the ultimate consumer without discrimination as between consumers of the same class, and such contract shall be voidable at the election of the Board if a discriminatory rate, rebate, or other special concession is made or given to any consumer or user by the municipality or other political subdivision or cooperative organization: And provided further, That as to any surplus power not so sold as above provided to States, counties, municipalities, or other said organizations, before the Board shall sell the same to any person or corporation engaged in the distribution and resale of electricity for profit, it shall require said person or corporation to agree that any resale of such electric power by said person or corporation shall be made to the ultimate consumer of such electric power at prices that shall not exceed a schedule fixed by the Board from time to time as reasonable, just, and fair; and in case of any such sale, if an amount is charged the ultimate consumer which is in excess of the price so deemed to be just, reasonable, and fair by the Board, the contract for such sale between the Board and such distributor of electricity shall be voidable at the election of the Board: And provided further, That the Board is authorized to enter into contracts with other power systems for the mutual exchange of unused excess power upon suitable terms, for the conservation of stored water, and as an emergency or break-down relief.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2004—Pub. L. 108–447 substituted “Board” for “board” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 2004 AmendmentAmendment by Pub. L. 108–447 effective on the later of the date on which at least three persons nominated under section 604(a) of Pub. L. 108–447 take office or May 18, 2005, see section 604(b) of Pub. L. 108–447, set out in an Appointments;

Effective Date

Transition note under section 831a of this title.

Reference

Citations & Metadata

Citation

16 U.S.C. § 831k

Title 16 — Conservation

Last Updated

Apr 6, 2026

Release point: 119-73