--- kind: "section" citation: "16 U.S.C. § 831k" title: "16" title_heading: "Conservation" number: "831k" heading: "Transmission lines; construction or lease; sale of power over other than Government lines; rates when sold for resale at profit" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/16/831k" units: - "Chapter 12A — Tennessee Valley Authority" --- # §831k. Transmission lines; construction or lease; sale of power over other than Government lines; rates when sold for resale at profit In order to place the Board upon a fair basis for making such contracts and for receiving bids for the sale of such power, it is expressly authorized, either from appropriations made by Congress or from funds secured from the sale of such power, or from funds, secured by the sale of bonds hereafter provided for, to construct, lease, purchase, or authorize the construction of transmission lines within transmission distance from the place where generated, and to interconnect with other systems. The Board is also authorized to lease to any [person](/usc/16/450rr–1.md?p=b), [persons](/usc/16/450rr–1.md?p=b), or corporation the use of any transmission line owned by the Government and operated by the Board, but no such lease shall be made that in any way interferes with the use of such transmission line by the Board: Provided, That if any [State](/usc/16/590q.md?p=a), county, municipality, or other public or cooperative organization of citizens or farmers, not organized or doing business for profit, but primarily for the purpose of supplying electricity to its own citizens or members, or any two or more of such municipalities or organizations, shall construct or agree to construct and maintain a properly designed and built transmission line to the Government reservation upon which is located a Government generating plant, or to a main transmission line owned by the Government or leased by the Board and under the control of the Board, the Board is authorized and directed to contract with such [State](/usc/16/590q.md?p=a), county, municipality, or other organization, or two or more of them, for the sale of electricity for a term not exceeding thirty years; and in any such case the Board shall give to such [State](/usc/16/590q.md?p=a), county, municipality, or other organization ample time to fully comply with any local law now in existence or hereafter enacted providing for the necessary legal authority for such [State](/usc/16/590q.md?p=a), county, municipality, or other organization to contract with the Board for such power: Provided further, That all contracts entered into between the Corporation and any municipality or other political [subdivision](/usc/16/539m–1.md?p=15) or cooperative organization shall provide that the electric power shall be sold and distributed to the ultimate consumer without discrimination as between consumers of the same class, and such contract shall be voidable at the election of the Board if a discriminatory rate, rebate, or other special concession is made or given to any consumer or user by the municipality or other political [subdivision](/usc/16/539m–1.md?p=15) or cooperative organization: And provided further, That as to any surplus power not so sold as above provided to [States](/usc/16/544.md?p=r), [counties](/usc/16/544.md?p=d), municipalities, or other said organizations, before the Board shall sell the same to any [person](/usc/16/450rr–1.md?p=b) or corporation engaged in the distribution and resale of electricity for profit, it shall require said [person](/usc/16/450rr–1.md?p=b) or corporation to agree that any resale of such electric power by said [person](/usc/16/450rr–1.md?p=b) or corporation shall be made to the ultimate consumer of such electric power at prices that shall not exceed a schedule fixed by the Board from time to time as reasonable, just, and fair; and in case of any such sale, if an amount is charged the ultimate consumer which is in excess of the price so deemed to be just, reasonable, and fair by the Board, the contract for such sale between the Board and such distributor of electricity shall be voidable at the election of the Board: And provided further, That the Board is authorized to enter into contracts with other power systems for the mutual exchange of unused excess power upon suitable terms, for the conservation of stored water, and as an emergency or break-down relief. ## Source credit (May 18, 1933, ch. 32, § 12, 48 Stat. 65; Pub. L. 108–447, div. C, title VI, § 603(a)(2), Dec. 8, 2004, 118 Stat. 2966.) ## Notes ### Editorial Notes ### Amendments 2004—Pub. L. 108–447 substituted “Board” for “board” wherever appearing. ### Statutory Notes and Related Subsidiaries ### Effective Date of 2004 Amendment Amendment by Pub. L. 108–447 effective on the later of the date on which at least three persons nominated under section 604(a) of Pub. L. 108–447 take office or May 18, 2005, see section 604(b) of Pub. L. 108–447, set out in an Appointments; Effective Date; Transition note under section 831a of this title.