The Federal Power Commission is now comprised of three Cabinet officers,
and the duties involved in the competent conduct of the growing
responsibilities of this commission far exceed the time and attention which
these officials can properly afford from other important duties. I
recommended that authority be given for the appointment of full-time
commissioners to replace them.
It is also desirable that the authority of the commission should be
extended to certain phases of power regulation. The nature of the electric
utilities industry is such that about 90 per cent of all power generation
and distribution is intrastate in character, and most of the States have
developed their own regulatory systems as to certificates of convenience,
rates, and profits of such utilities. To encroach upon their authorities
and responsibilities would be an encroachment upon the rights of the
States. There are cases, however, of interstate character beyond the
jurisdiction of the States. To meet these cases it would be most desirable
if a method could be worked out by which initial action may be taken
between the commissions of the States whose joint action should be made
effective by the Federal Power Commission with a reserve to act on its own
motion in case of disagreement or nonaction by the States.