[ITEM 68] BOULDER CANYON PROJECT MEMORANDUM OF INTERBUREAU UNDERSTANDING COVERING THE RESALE OF ELECTRICAL ENERGY TO BE DEVELOPED AT BOULDER DAM POWER PLANT 1. THIS MEMORANDUM OF UNDERSTANDING, made this 14th day of September, nineteen hundred forty, 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 Bureau of Reclamation, hereinafter referred to as the Bureau, represented by the contracting officer executing this Memorandum, and Office of Indian Affairs, hereinafter referred to as the Indian Office, represented by the Commissionr of Indian Affairs. WITNESSETH: EXPLANATORY RECITALS 2. WHEREAS, for the purpose of controlling the floods, improving navigation and regulating the flow of the Colorado River, providing for storage and for the delivery of the stored waters for reclamation of public lands and other beneficial uses exclusively within the United States, and for the generation of electrical energy, the Secretary of the Interior, hereinafter referred to as the Secretary, subject to the terms of the Colorado River Compact, is authorized to construct, operate and maintain a dam and incidental works in the main stream of the Colorado River at Black Canyon or Boulder Canyon, adequate to create a storage reservoir of a capacity of not less than twenty million acre feet of water; also to construct, equip, operate and maintain at or near said dam, or cause to be constructed, a complete plant and incidental structures suitable for the fullest economic development of electrical energy from the water discharged from said reservoir; and 3. WHEREAS, after full consideration of the advantages of both the Black Canyon and Boulder Canyon dam sites, the Secretary has determined upon Black Canyon as the site of the aforesaid dam, hereinafter styled the Boulder Dam, and has determined that the provisions for revenues made by contract in accordance with the provisions of the Boulder Canyon project act, are adequate in his judgment to insure payment of all expenses of operation and maintenance of the Boulder Dam and appurtenant works incurred by the United States, and the repayment within fifty (50) years from the date of completion of said works of all amounts advanced to the Colorado River Dam fund under subdivision (b) of Section two (2) of the Boulder Canyon project act, together with interest thereon made reimbursable under said Act; and 4. WHEREAS, the United States has entered into a contract of date April 26, 1930, with the City of Los Angeles (hereinafter styled the City) and Southern California Edison Company, Ltd., severally (both hereinafter referred to as the Lessees) for the lease, and for the operation and maintenance of a Government-built power plant to be constructed at Boulder Dam as aforesaid, together with the right to generate electrical energy as therein stated, a copy of which said lease-contract as amended by supplemental contracts of dates May 28, 1930, and September 23, 1931, is attached to Exhibit 1 hereof, marked Exhibit "A"; and 5. WHEREAS, in said lease-contract of April 26, 1930, as amended, the Secretary has reserved the authority to, and in consideration of the execution thereof is authorized by each of the aforesaid Lessees, severally, to contract and the other allottees named in the allocation set forth therein for the furnishing of energy to such allottees at transmission voltage in accordance with the alloca tion to each allottee, and the Secretary is therein granted by each Lessee, severally, the power in accordance with the provisions thereof to enforce as against each Lessee the rights to be acquired by such other allottees by contracts to be entered into with the United States, and in said lease-conract the City has agreed, among other things, to generate energy allocated to The Metropolitan Water Disrict of Southern California, hereinafter referred to as the District; and 6. WHEREAS, the United States has entered into a contract with the District of date April 26, 1930, for the purchase by and delivery to the District under the terms and conditions therein stated of certain electrical energy to be developed at Boulder Dam Power Plant, a copy of which contract as amended by supplemental contract of date May 31, 1930, is attached hereto, marked Exhibit 1, and by this reference made a part hereof as fully and completely as though set out herein at length; and 7. WHEREAS, the District will be unable for a period of years from and after the date when it is required to take and/or pay for firm energy under the provisions of said Exhibit 1 hereof to use a portion of such energy for the only purposes for which energy has been allocated to and purchased by the District, namely, for pumping water into and in its aqueduct, and has requested the Secretary to dispose of such excess energy pursuant to and in accordance with the provisions of Article seven (7) of said Exhibit 1 until required by the District; and each Lessee under the said lease, marked Exhibit "A" attached to Exhibit 1 hereof, has been given the opportunity, as provided in said Article seven (7) to contract for said unused energy upon the terms and conditions herein stated and has declined so to contract; and 8. WHEREAS, the Indian Office is engaged in constructing the Colorado River Indian irrigation project, including the Head Gate Rock diversion dam and incidental structures, pursuant to the authority granted the Secretary in the Acts of Congress approved August 30, 1935 (49 Stat. 1039 at 1040) and May 9, 1938 (52 Stat. 307), and as a part of said construction work the Indian Service will build a transmission line from the District's Parker substation to said irrigation project and a substation at or near the Indian Service Agency headquarters in the town of Parker, Arizona, and for the purpose of acquiring electric energy for project and Agency requirements and for the purpose of supplying alternating current to the town of Parker, Arizona; the Indian Office has made application to the Secretary for the delivery to it for the term of this Memorandum of Understanding of a part of the firm energy contracted for by the District, but which will not be required, temporarily, for pumping water into and in the aforesaid aqueduct ; 9. NOW, THEREFORE, it is mutually understood as follows, to wit: DELIVERY OF ELECTRICAL ENERGY 10. The Bureau 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 Indian Office for a period beginning on the date when facilities for transmitting power from the site of the District's Parker substation to the headquarters of the Colorado River Indian Reservation at Parker, Arizona, have been constructed by the Indian Office, and, ending on May 31, 1945, or within sixty (60) days after the date when the Chief Engineer of the Bureau notified the Indian Office in writing that the power plant now under construction by the Bureau at Parker Dam is ready for operation, whichever date shall be the earlier, so much firm energy (as defined in said Exhibits 1 and “A”) as may be required by the Indian Office for its own uses and for distribution to its customers within, and in the vicinity of, the Colorado River Indian Reservation, not, however, execeeding at any time the amount remaining unused by the District, and unsold either by existing contracts or by future contracts. PLACE AND MANNER OF DELIVERY OF ELECTRICAL ENERGY 11. Energy will be delivered to the Indian Office at or near the site of the District's Parker substation at a point to be designated by the Chief Engineer of the Bureau at approximately thirty-three thousand (33,000) volts in form of 3-phase alternating current at a frequency of approximately 60 cycles per second by means of the District's transmission and transformer facilities between Boulder Dam Power Plant and the District's Parker substation. It is understood by the Indian Office that the delivery of energy over the transmission facilities of the District between Boulder Dam Power Plant and Gene Pumping Plant is to be accomplished by means of any power transmission capacity which, for the time being, may be in excess of the District's requirements (as determined by the District), and that such use of said transmission facilities is subject at all times to conditions as fixed by the District. The Indian Office shall not be entitled to the delivery of any energy hereunder until it shall have first entered into a contract with the District for the benefit of, and without cost to the Bureau, for the use by the Bureau in supplying energy hereunder of the District's step-down transformers at Gene Pumping Plant, the District's transmission line from Gene Pumping Plant to the District's Parker substation, and suitable metering equipment at said Parker substation. The Indian Office at its own cost and expense and prior to the delivery of energy hereunder, shall furnish and install terminal facilities, including current transformers for operating the meters, of a type and in manner satisfactory to the District at the point where the transmission line of the Indian Office connects with the line of the District at or near the site of the District's Parker substation. Said terminal facilities shall remain the property of the Indian Office and may be removed by the Indian Office at the termination of this Memorandum of Understanding. DELIVERY OF ENERGY SUBJECT TO OPERATING CONDITIONS 12. The Indian Office accepts this Memorandum of Understanding with knowledge of and subject to the fact that the District's transmission, transforming and control facilities have been designed and constructed, and will be operated to meet the requirements of the District, that is, for the purpose of pumping water into and in its aqueduct, and are subject at all times to operating conditions fixed by the District. CHARGES TO BE PAID THE BUREAU FOR CREDIT TO THE DISTRICT 13. (a) The Indian Office agrees to pay the Bureau for credit to the District for the use of falling water for generation of energy for the Indian Office at the rate of one and sixty-three hundredths mills ($0.00163) per kilowatt-hour (delivered at transmission voltage at Boulder Dam) and twenty-eight cents ($0.28) per month per kilowatt of monthly (calendar month) maximum demand for the generation of energy. For a fractional part of a calendar month at the beginning or at the end of the contract period, the generating charge shall be reduced in the ratio that the number of days that power is made available during such fractional calendar month bears to the number of days in said calendar month. The "maximum demand" for any period is defined as the average flow of power during the fifteen-minute interval in which the maximum quantity of energy is taken by the Indian Office during such period. (b) The charges to be paid hereunder, for credit to the District, for the generation of energy have been determined by agreement between the Indian Office and the District. It is expressly understood and agreed that nothing in this article shall be construed as a determination by the Secretary, or by the Bureau, as to the proper proportionate part of the generating cost payable by the District for credit to its generating agency, or as to the manner or basis of apportionment of the cost of generation under any other contract for the sale of energy generated at Boulder Dam Power Plant. MONTHLY PAYMENTS 14. The Indian Office shall pay monthly for energy in accordance with the rates established or provided for herein, and for the generation thereof as provided in Article thirteen (13) hereof. The Bureau will submit bills to the Indian Office by the fifth of each month immediately following the month during which the energy is generated, and payment shall be due on the first day of the month immediately succeeding. The charge for generating energy during each month shall be made at the rate specified in Article thirteen (13) for the maximum demand occurring during said month. 833942-50-49 |