A bill to amend certain provisions of the Federal Power Act, 16 U.S.C. 791a et seq., relating to preferences in issuance of preliminary permits or licenses.

Amends the Federal Power Act to authorize the Federal Energy Regulatory Commission to issue licenses and preliminary permits to any cooperative or association of cooperatives for hydroelectric power development. Directs the Commission to give cooperatives and associations of cooperatives preference in issuing permits or licenses and to exempt such cooperatives from the annual rates ordinarily charged by the Federal government. Defines a cooperative as a nonprofitmaking organization of individuals organized primarily to supply electricity to its own members.