The Federal Power Act is a law appearing in chapter 12 of Title 16 of the United States Code, "Federal regulation and development of power". Enacted as the Federal Water Power Act in 1920, its original purpose was coordinating
hydroelectric projects in the United States. The act created the
Federal Power Commission (FPC) (now the
Federal Energy Regulatory Commission) as the licensing authority for these plants. In 1935 the law was renamed the Federal Power Act, and the FPC's regulatory jurisdiction was expanded to include all interstate electricity transmission.
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Enacted in 1920, and amended in 1935, the Act consists of three parts. The first part incorporated the Federal Water Power Act administered by the former Federal Power Commission, whose activities were confined almost entirely to licensing non-Federal hydroelectric projects. Parts II and III were added with the passage of the Public Utility Act. These parts extended the Act's jurisdiction to include regulating the interstate transmission of electrical energy and rates for its sale as wholesale in interstate commerce. The Federal Energy Regulatory Commission is now charged with the administration of this law.
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