734 Applications for al- l ocat ions by publ ic bodies, etc . Private corpora- tions . Preferential status of public bodies, etc . Opportunity to per- fec t organization , fi- nancing, etc . Negotiation of con- tr acts for sale of powe r at wholesale for resale or direct consumption. Resale to privately owned public utility, restriction . Terms, etc . Renewals. Adjustment of rates . cancelati on sion . provi- Terms and condi- tions of contracts . 75TH CONGRESS, 1sT SESSION-CH . 720--AUGUST 20, 19 37 (c) An application by any public body or cooperative for an allocation of electric energy shall not be denied, or another application competing or in conflict therewith be granted, to any private corpora- tion, company, agency, or person, on the ground that any proposed bond or other se curity i ssue of any such public b ody or c ooperati ve, the sale of which is necessary to enable such prospective purchaser to enter into the public business of selling and distributing the electric energy proposed to be p urchased, has not been au thorized or marketed, until after a reasonable time to be determined by the administrator, has been afforded such public body or cooperative to h ave such bond or other s ecurity i ssue aut horized or marke ted . (d ) It is d eclared to be th e policy of the Congress, as expr essed in this Act, to preserve the said preferential status of the public bodies and cooperatives herein referred to, and to give to the people of the States within economic transmission distance of the Bonneville project reasonable opportunity and time to hold any election or elections or take any action necessary to create such public bodies and cooperatives as the laws of such States authorize and permit, and to a fford su ch publi c bodies or coope ratives reasonab le time and opportunity to take any action necessary to authorize the issuance of bo nds or to arra nge other fina ncin g nec essar y to cons truct or acquire necessary and desirable electric distribution facilities, and in all other respects legally to become qualified purchasers and dis- t ributors of electric energy availab le under this Act . SEc . 5 . (a) Subject to the provisions of this Act and to such rate schedules as the Federal Power Commission may approve, as here- inafter provided, the administrator shall negotiate and enter into con- tracts for the sale at wholesale of electric energy, either for resale or d irect co nsumptio n, to pu blic bodi es and c ooperati ves and to priva te agencies and persons . Contracts for the sale of electric energy to any private person or agency other than a privately owned public utility engaged in selling electric energy to the general public, shall contain a provision forbidding such private purchaser to resell any of such electric energy so purchased to any private utility or agency engaged in the sale of electric energy to the general public, and requiring the immediate canceling of such contract of sale in the event of violation of such provision . Contracts entered into under this subsection shall be binding in accordance with the terms thereof and shall be effective for such period or periods, including renewals or extensions, as may be provided therein, not exceeding in the aggre- gate twenty years rom the respective dates of the making of such contracts . Contracts entered into under this subsection shall contain (1) such provisions as the administrator and purchaser agree upon for the equitable adjustment of rates at appropriate intervals, not less frequently than once in every five years, and (2) in the case of a contract with any purchaser engaged in the business of selling electric energy to the general public, the contract shall provide that the administrator may cancel such contract upon five years' notice in writing if in the judgment of the administrator any part of the elec- tric energy purchased under such contract is likely to be needed to satisfy the requirements of the said public bodies or cooperatives referred to in this Act, and that such cancelation may be with respect to all or any part of the electric energy so purchased under said con- tract to the end that the preferential rights and priorities accorded public bodies and cooperatives under this Act shall at all times be pr eserved . Contracts entered into with any utility engaged in the sale of electric energy to the general public shall contain such terms and conditions, including among other things stipulations concern- ing resale and resale rates by any such utility, as the administrator
