Federal Power Commission v. Niagara Mohawk Power Corp.

The most significant issue raised by this case is whether the Federal Water Power Act of 19201 has abolished pri*241vate proprietary rights, existing under state law, to use waters of a navigable stream for power purposes. We agree with the Court of Appeals that it has not. We agree also that in computing a federal licensee’s amortization reserve, required by § 10 (d) of that Act, as amended,2 the Federal Power Commission was not justified in disallowing the expenses paid or incurred by the licensee in this ease for the use of such rights.

March 2, 1921, Niagara Falls Power Company, a New York…