Page:United States Statutes at Large Volume 94 Part 3.djvu/70

 94 STAT. 2714

PUBLIC LAW 96-501—DEC. 5, 1980

(5) Subject to the provisions of sections 4 and 6, in lieu of purchasing any amount of electric power offered by a utility under paragraph (1) of this subsection, the Administrator may acquire an equivalent amount of electric power from other sources to replace power sold to such utility as part of an exchange sale if the cost of such acquisition is less than the cost of purchasing the electric power offered by such utility. (6) Exchange sales to a utility pursuant to this subsection shall not be restricted below the amounts of electric power acquired by the Administrator from, or on behalf of, such utility pursuant to this subsection. "Average system (7) The "average system cost" for electric power sold to the cost." Administrator under this subsection shall be determined by the Administrator on the basis of a methodology developed for this purpose in consultation with the Council, the Administrator's customers, and appropriate State regulatory bodies in the region. Such methodology shall be subject to review and approval by the Federal Energy Regulatory Commission. Such average system cost shall not include— (A) the cost of additional resources in an amount sufficient to serve any new large single load of the utility; (B) the cost of additional resources in an amount sufficient to meet any additional load outside the region occurring after the effective date of this Act; and (C) any costs of any generating facility which is terminated prior to initial commercial operation. (d)(1)(A) The Administrator is authorized to sell in accordance with this subsection electric power to existing direct service industrial customers. Such sales shall provide a portion of the Administrator's reserves for firm power loads within the region. "Industrial firm (B) After the effective date of this Act, the Administrator shall offer P^^^'' in accordance with subsection (g) of this section to each existing direct service industrial customer an initial long term contract that provides such customer an amount of power equivalent to that to which such customer is entitled under its contract dated January or April 1975 providing for the sale of "industrial firm power." (2) The Administrator shall not sell electric power, including reserves, directly to new direct service industrial customers. (3) The Administrator shall not sell amounts of electric power, including reserves, to existing direct service industrial customers in excess of the amount permitted under paragraph (1) unless the Administrator determines, after a plan has been adopted pursuant to section 4 of this Act, that such proposed sale is consistent with the plan and that— (A) additional power system reserves are required for the region's firm loads, (B) the proposed sale would provide a cost-effective method of supplying such reserves, (C) such loads or loads of similar character cannot provide equivalent operating or planning benefits to the region if served by an electric utility under contractual arrangements providing reserves, and (D) the Administrator has or can acquire sufficient electric power to serve such loads, and unless the Council has determined such sale is consistent with the plan. After such determination by the Administrator and by the Council, the Administrator is authorized to offer to existing direct service industrial customers power in such amounts in excess of the

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