Purpose of Part I.--Part I of the Federal Power Act represents the declared policy of Congress to provide for the development and improvement of navigation and the development, transmission, and utilization of power on streams subject to Federal jurisdiction, upon lands of the United States, and at Government dams, by private and public agencies acting under licenses issued by the Commission. Such licenses may be issued only after satisfactory evidence has been submitted that the applicant has complied with the requirements of specified State laws; and if the navigable capacity of any navigable waters of the United States will be affected, only upon the approval of the plans for the project by the Chief of Engineers and the Secretary of War; or if a reservation is affected, only upon such conditions as the secretary of the department under whose supervision it falls shall deem necessary for its adequate protection and utilization.

Licenses so issued are subject to the following conditions: to effectuate the foregoing policies; to protect reservations of the United States; to adapt each project ot a comprehensive plan for improving or developing a waterway or waterways for interstate or foreign commerce, for the improvement and utilization of water power, and for other beneficial uses, including recreational purposes; to reimburse the United States for the cost of administration of part I of the act and to recompense it for the use of lands; to expropriate excessive profits until the States shall make provision for their prevention or expropriation; to provide for the payment of assessments for benefits from headwater improvements; to give the United States the option to recapture licensed projects at the expiration of the licenses; to obtain the maintenance and operation of navigation facilities and fishways; and to provide for reasonable regulations of rates, services, and security issues of parties involved, in the absence of State regulation. The act also provides for investigations of unlicensed projects subject to Federal regulation and the issuance of orders in the public interest to conserve and utilize navigation and water power resources.

Purpose of Part II.--Part II of the act embodies a comprehensive scheme for the regulation of electric utilities engaged in interstate commerce. The policy is to extend Federal regulation to matters which cannot be regulated by the States and also to exert Federal authority to strenghthen and assist the States in the exercise of their regulatory powers. In general, the regulatory provisions of the act apply to persons owning and operating facilities for the transmission of electric energy in interstate commerce or for the sale of electric energy at wholesale in interstate commerce, with certain exceptions--for example, facilities used in local distribution. Provision is made for the encouragement of voluntary interconnection and coordination of facilities; for compulsory interconnections under certain circumstances; for authorizing transmission of electric energy from the United States to a foreign country when it will not impair the sufficiency of electric supply within the United States or impeded or tend to impede coordination of facilities; for the approval of the transfer of assets, under certain conditions, involving companies subject to the jurisdiction of the Commission; for the approval of the issuance of long-term securities in accordance with specified standards, and for the scrutiny of the issuance of short-term securities, involving companies subject to the jurisdiction of the Commission where the companies are not organized and operating in a State under the laws of which its security issues are regulated by a State commission.

Further provisions apply to the charging of just, reasonable, nondiscriminatory and nonpreferential rates in connection with the transmission or sale of electric energy subject to the jurisdiction of the Commission, and to the furnishing of proper, adequate, and sufficient service in the interstate transmission or sale of electric energy.

Purpose of Part III.--Part III of the act provides for the prescribing and enforcement of compliance with a Uniform System of Accounts by licensees and interstate electric utilities, reclassification of accounts, regulation of depreciation and like accounting matters. It also requires approval of the holding of interlocking positions in the companies subject to the jurisdiction of the Commission, in security underwriting companies, and in electrical equipment supply companies when neither public nor private interests will be adversely affected thereby. Part III also contains provisions for the hearing of complaint cases, the instituting of investigations, conduct of hearings, and the review of Commission order by the courts.

The Tennessee Valley Authority Act , the Bonneville Project Act , and the Fort Peck Project Act provide for the creation of various Government hydroelectric power projects, each of which is subject, in various phases of its operations, to the supervision and authority of the Commission.

The Natural Gas Act is intended to regulate those engaged in the transportation of natural gas in interstate commerce or the sale in interstate commerce of such gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use.

The policy of Congress in this connection is to extend Federal regulation to certain phases of the business of transporting and selling natural gas for ultimate distribution to the public which cannot be regulated by the States, also to assert Federal authority to strenghthen and assist the States in the exercise of their regulatory powers. Provision is made for control over the exportation and importation of natural gas; for control over rates and charges; determination of the cost of production or transportation of natural gas and ascertainment of cost of property of natural gas companies engaged in interstate commerce; extension of facilities and abandonment of service by natural gas companies; investigation of compacts proposed to Congress by two or more States dealing with the conservation, production, transportation, or distribution of natural gas; establishment of joint boards representing States affected in any particular matter, and for furnishing necessary reports and information.