The Area Director shall set service fees and electric power rates in accordance with the procedures in Sec. Sec. 175.11 and 175.12 to generate power revenue.
(a) Revenues. Revenues collected from power operations shall be administered for the following purposes, as provided in the Act of August 7, 1946 (60 Stat. 895), as amended by the Act of August 31, 1951 (65 Stat. 254):
(1) Payment of the expenses of operating and maintaining the utility;
(2) Creation and maintenance of reserve Funds to be available for making repairs and replacements to, defraying emergency expenses for, and insuring continuous operation of the utility;
(3) Amortization, in accordance with repayment provisions of the applicable statutes or contracts, of construction costs allocated to be returned from power revenues; and
(4) Payment of other expenses and obligations chargeable to power revenues to the extent required or permitted by law.
(b) Rate and fee reviews. Rates and fees shall be reviewed at least annually to determine if project revenues are sufficient to meet the requirements set forth in paragraph (a) of this section. The review process shall be as prescribed by the Area Director.