---
kind: "section"
citation: "18 C.F.R. § 11.12"
title: "18"
number: "11.12"
heading: "Determination of section 10(f) costs."
url: "https://uscodex.org/cfr/18/11.12"
---

# §11.12. Determination of section 10(f) costs.

- (a) **for non-Federal headwater projects.** If the headwater project was constructed by a licensee or pre-1920 permittee and a party requests the Commission to determine charges, the Commission will determine on a case-by-case basis what portion of the annual interest, maintenance, and depreciation costs of the headwater project constitutes the [section 10(f)](/cfr/18/10.md?p=f) costs, for purposes of this subpart.
- (b) **For Federal headwater projects.**
  - (1) If the headwater project was constructed or is operated by the United States, and the Commission has not approved a settlement between the downstream project owner and the headwater project owner, the [section 10(f)](/cfr/18/10.md?p=f) cost will be determined by deriving, from information provided by the headwater project owner pursuant to [§ 11.16](/cfr/18/11.16.md) of this subpart, the joint-use power cost and the portion of the annual joint-use power cost that represents the interest, maintenance, and depreciation costs of the project.
  - (2) If power is not an authorized function of the headwater project, the [section 10(f)](/cfr/18/10.md?p=f) cost is the annual interest, maintenance, and depreciation portion of the headwater project costs designated as the joint-use power cost, derived by deeming a power function at the project. The value of the benefits assigned to the deemed power function, for purposes of determining the value of remaining benefits of the joint-use power cost, is the total value of downstream energy gains included in the headwater benefits formula.
  - (3) For purposes of this paragraph, total value of downstream energy gains means the lesser of:
    - (i) The cost of generating an equivalent amount of electricity at the most likely alternative facility at the time the headwater project became operational; or
    - (ii) The incremental cost of installing electrical generation at the headwater project at the time the project became operational.

## Notes

### Source

Source: Order 453, 51 FR 24318, July 3, 1986, unless otherwise noted.

### Authority

Authority: 16 U.S.C. 792-828c; 42 U.S.C. 7101-7352.