(d) This agreement is intended to result in payment by the District to the United States on account of the use of falling water for the generation of firm energy of not less than the minimum amount of money which it is obligated to pay therefor under the terms of the said original contract, plus interest on all amounts deferred as elsewhere herein provided. If the District shall fail to pay when due any payment as provided for in this agreement, a penalty of one per centum (1%) of the amount unpaid shall be added thereto for each month, or part thereof, during such delinquency.

7. Nothing herein shall be construed to prevent the District from participating in any readjustment of rates that may result from any act or acts of Congress or from receiving the benefit of Article (37) of the Contract for Lease of Power Privilege between the United States and, severally, The City of Los Angeles and its Department of Water and Power and the Southern California Edison Company Ltd.

8. If, by contract or otherwise, the time for the payment by The City of Los Angeles, pursuant to Article (9) (a) of the said Contract for Lease of Power Privilege, of compensation for the use of machinery and equipment installed for said City for the generation of electrical energy for itself and others, including the District, shall be extended, the time for the payment by the District to the United States for credit to the City of so much of the payments provided for in Article (12) of the original contract as represents a proper proportionate allowance for amortization of the cost of machinery and equipment therein referred to, shall be, and is hereby, correspondingly so extended, provided, that the District shall pay interest, at the rate chargeable to the Colorado River Dam fund, on the unpaid balance of said proper proportionate allowance for amortization of the cost of machinery and equipment. No prepayment by said City, pursuant to any right of prepayment which may be reserved by or granted to it in connection with such extension, shall obligate the District to make any corresponding prepayment of the said proper proportionate allowance so payable by it.

Nothing in this agreement shall be construed to alter or defer the time of commencement of payments, required to be made under the original contract, by the District to the United States for credit to the Disrict's generating agency.

9. Notwithstanding the provisions of Article (19) (a) of the original contract and Article (25) (a) of Exhibit "A" attached to the original contract, the District shall operate and maintain its own transmission lines therein referred to and the Secretary will cause delivery of energy at transmission voltage to be made accordingly.

10. The District agrees to make payments to the United States each year (in addition to its payments for credit to its generating agency and payments made under Article 6 hereof) at such times and in such amounts (not exceeding the amount which the District would be obligated to pay in such year under the original contract) as the Secretary of the Interior, taking into account the pay

ments made under Article 5 hereof, may find to be necessary, under the Boulder Canyon Project Act as now in force or under legislation hereafter enacted amendatory thereof or supplementary thereto, in order to (1) cover the District's proportionate part, on the basis of its original contract, of the cost of operation and maintenance of Boulder Dam and incidental works (exclusive of the power plant) for such year, and (2) leave unaffected by this agreement the rates or charges payable by any other allottee of Boulder Dam energy, and (3) leave unaffected the amounts which, but for this agreement, would be payable for such year, out of the Colorado River Dam fund, to any State, fund, or allottee, other than amounts covered into the Treasury to the credit of miscellaneous receipts. Payments made by the District pursuant to this Article shall be credited on the total of the District's monthly deficiencies remaining unpaid, as provided in Article 6 (a) hereof.

For the purpose of computing and paying the amounts payable to the States of Arizona and Nevada pursuant to section 4(b) of the Boulder Canyon Project Act, the payments which would be made to the United States out of the Colorado River Dam fund, but for this agreement, for any year during the period ending June 30, 1955, shall be reduced by an amount equal to the aggregate of the District's monthly deficiencies, as computed under Article 6 hereof, for such year, less the amount of the interest paid by the District for such year, on the unpaid balance of the District's deficiencies, and the payments which would be made to the United States out of the Colorado River Dam fund, but for this agreement, for any year after June 30, 1955, shall be increased by and shall include an amount equal to the payments made by the District to the United States, under Article 6 (c) hereof, for such year.

11. No agreement which the Secretary may make with any other allottee of Boulder Dam energy shall be permitted, without the consent of the District, to have the consequence of increasing, at any time or in any manner, the rates which the District would otherwise be obligated to pay for firm energy and secondary energy, or of adversely affecting any right or obligation of the District; provided, that nothing in this paragraph shall in any way affect the periodic readjustment of uniform rates for Boulder Dam energy in accordance with the then existing laws and contracts.

MEMBER OF CONGRESS CLAUSE

12. No member of or delegate to Congress or resident commissioner, shall be admitted to any share or part of this contract or to any benefit that may arise therefrom, but this restriction shall not be construed to extend to this contract if made with a corporation or company for its general benefit.

IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the day and year first above written.

833942-50-45

THE UNITED States of AmERICA,

(Signed) By HAROLD L. ICKES,

Secretary of the Interior.

Attest:

R. L. JOHNSON.

THE METROPOLITAN WATer District of

SOUTHERN California,

By F. E. WEYMOUTH,

General Manager and Chief Engineer.

Attest:

A. L. GRAM.

Approved:

(Signed) J. H. HOWARD,

General Counsel.

[ITEM 61]

BOULDER CANYON PROJECT

CONTRACT ACCELERATING INITIAL DATE FOR SALE OF BOULDER DAM ELECTRICAL ENERGY UNDER AGREEMENT OF JANUARY 7, 1938

THE UNITED STATES

AND

CITIZENS UTILITIES COMPANY

SEPTEMBER 28, 1938

(I1r-1009)

THIS CONTRACT, made this 28th day of September, 1938, pursuant to the Act of Congress approved June 17, 1902, 32 Stat., 388, and acts amendatory thereof or supplementary thereto, all of which acts are commonly known and referred to as the Reclamation Law, and particularly pursuant to the Act of Congress approved December 21, 1928, 45 Stat., 1057, designated the Boulder Canyon Project Act, between THE United States OF AMERICA, hereinafter referred to as the United States, acting for this purpose by W. C. Mendenhall, Acting Assistant Secretary of the Interior, hereinafter styled the Secretary, and CITIZENS UTILITIES COMPANY, a corporation organized and existing under and by virtue of the laws of the State of Delaware, hereinafter referred to as the Company:

WITNESSETH:

ARTICLE 2. WHEREAS, the parties hereto on January 7, 1938 entered into a contract for resale of electrical energy to be developed at Boulder Dam Power Plant, which said contract provides for commencement of performance on October 22, 1938; and

ARTICLE 3. WHEREAS, the Company is desirous of commencing on October 3, 1938 to take and/or pay for electrical energy pursuant to the terms of its contract with the United States, dated January 7, 1938; and

ARTICLE 4. WHEREAS, the United States has available electrical energy which, commencing on October 3, 1938, can be furnished pursuant to the terms of said contract of January 7, 1938;

ARTICLE 5. Now, THEREFORE, the parties hereto agree as follows, to wit: ARTICLE 6. The first eight lines of Article 10 of the contract of January 7, 1938 between the parties hereto, reading as follows:

10. The United States agrees, subject to all the terms and conditions of Exhibit 1 hereof, that of the firm energy to be developed at Boulder Dam power plant, and heretofore allocated to and contracted for by the District, it will cause to be delivered to the Company for a period beginning on the date when energy is first made available to the District in accordance with the provisions of said Exhibit 1, or eight calendar months after the date of execution hereof by the Secretary, whichever date shall be the later, and ending on and including December 31, 1954, so much firm energy as may be

*

are hereby amended so as to read as follows:

10. The United States agrees, subject to all the terms and conditions of Exhibit 1 hereof, that of the firm energy to be developed at Boulder Dam power plant, and heretofore allocated to and contracted for by the District, it will cause to be delivered to the Company for the period beginning October 3, 1938, inclusive and ending on December 31, 1954, inclusive, so much firm energy as may be

ARTICLE 7. The contract of January 7, 1938 is otherwise to remain unchanged.

ARTICLE 8. No Member of or Delegate to Congress or Resident Commissioner shall be admitted to any share or part of this contract or to any benefit that may arise herefrom, but this restriction shall not be construed to extend to this contract if made with a corporation or company for its general benefit. IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the day and year first above written.

THE UNITED STATES OF AMERICA,
By W. C. MENDENHALL,

Acting Asst. Secretary of the Interior.
CITIZENS UTILITIES COMPANY,

By JOSEPH CHAPMAN, President.

[CORPORATE SEAL]

Attest:

C. E. STEELE, Assistant Secretary.