E4-54. Allegheny Energy Supply Company, LLC; Notice of Authorization for Continued Project Operation

January 7, 2004.

On December 17, 2001, Allegheny Energy Supply Company, LLC, licensee for the Dam No. 4 Hydro Station Project No. 2516, filed an application for a new or subsequent license pursuant to the Federal Power Act (FPA) and the Commission's regulations thereunder. Project No. 2516 is located on the Potomac River in Berkeley and Jefferson Counties, West Virginia.

The license for Project No. 2516 was issued for a period ending December 31, 2003. Section 15(a)(1) of the FPA, 16 U.S.C. 808(a)(1), requires the Commission, at the expiration of a license term, to issue from year to year an annual license to the then licensee under the terms and conditions of the prior license until a new license is issued, or the project is otherwise disposed of as provided in section 15 or any other applicable section of the FPA. If the project's prior license waived the applicability of section 15 of the FPA, then, based on section 9(b) of the Administrative Procedure Act, 5 U.S.C. 558(c), and as set forth at 18 CFR 16.21(a), if the licensee of such project has filed an application for a subsequent license, the licensee may continue to operate the project in accordance with the terms and conditions of the license after the minor or minor part license expires, until the Commission acts on its application. If the licensee of such a project has not filed an application for a subsequent license, then it may be required, pursuant to 18 CFR 16.21(b), to continue project operations until the Commission issues someone else a license for the project or otherwise orders disposition of the project.

If the project is subject to section 15 of the FPA, notice is hereby given that an annual license for Project No. 2516 is issued to Allegheny Energy Supply Company, LLC for a period effective January 1, 2004, through December 31, 2004, or until the issuance of a new license for the project or other disposition under the FPA, whichever comes first. If issuance of a new license (or other disposition) does not take place on or before January 1, 2005, notice is hereby given that, pursuant to 18 CFR 16.18(c), an annual license under section 15(a)(1) of the FPA is renewed automatically without further order or notice by the Commission, unless the Commission orders otherwise.

If the project is not subject to section 15 of the FPA, notice is hereby given that Allegheny Energy Supply Company, LLC is authorized to continue operation of the Dam No. 4 Hydro Station Project No. 2516 until such time as the Commission acts on its application for subsequent license.

Magalie R. Salas,

Secretary.