Section 15-1721. Reservation in the license; state control of rates and use and distribution of power

1. Every license issued pursuant to title 17 of  this  article  for  a
  project  shall  contain a provision expressly reserving to the state the
  right to regulate and control the use  and  distribution  of  the  power
  generated  by any licensee, and to fix reasonable rates to be charged by
  the licensee under all circumstances for furnishing heat, light or power
  generated wholly or partly  by  the  use  of  property  covered  by  the
  license, and to regulate the service, capitalization and secured debt of
  the licensee and licensed project.
    2. Jurisdiction is hereby conferred upon, and it shall be the duty of,
  the  Public  Service  Commission  to  regulate  and  control the use and
  distribution of all power generated by any licensee under  title  17  of
  this  article,  or generated by any person or public corporation, by the
  use and diversion for power purposes of any waters of the state in which
  the state has a proprietary right or interest,  and  to  fix  reasonable
  rates  to  be  charged  by  such  licensee,  or  such  person  or public
  corporation, for furnishing heat, light or  power  generated  wholly  or
  partly by the use of water in which the state has a proprietary right or
  interest.  In  the  exercise  of  such  jurisdiction  the Public Service
  Commission shall give  preference  to  municipalities  in  the  use  and
  distribution  of  power  generated by such licensee or by such person or
  public corporation. To carry out the provisions  of  this  section,  and
  until    otherwise    provided    by   law,   complaints,   inspections,
  investigations, hearings, rules, regulations, orders and  determinations
  may  be  made or had, and rules, regulations and orders enforced, in the
  manner, so far as applicable, provided in the Public Service  Commission
  Law  in  respect of electrical corporations and of the manufacture, sale
  and distribution of electricity.
    3. Every license issued pursuant  to  this  article  shall  contain  a
  condition  that  the development of power thereunder shall be subject to
  the control and authority of the Public Service Commission to the extent
  conferred upon such Commission by this section.