in agreed to be paid by the Indian Office shall be adjusted so that from and after the date such lesser rates become effective the Indian Office shall not be required to pay rates for the use of falling water for the generation of firm energy greater than those required to be paid by the District, provided, however, that the provisions of this article shall not apply to any load-building arrangement, heretofore or hereafter granted to the District. The provisions of Article thirty-seven (37) of Exhibit "A" hereof shall not apply to the gen erating charge herein required to be paid. Said generating charge shall be subject to revision only in the event the four per centum (4%) interest rate now charged upon advancements to the Colorado River Dam fund may be reduced. Such reduction shall be in the following proportion, namely; for every reduction of one-quarter of one per centum (1/4%) of such interest rate, three-quarters of a cent ($0.0075) shall be deducted from the twentyeight cents ($0.28) per month per kilowatt generating charge, and such revision of generating charges shall be made for the whole effective period during which such lower interest rate is imposed during the term of this Memorandum of Understanding. INTERRUPTIONS AND CURTAILMENTS TO SERVICE 20. Should the delivery of electric power, for any reason not due to the fault of the Indian Office nor to its failure to take power when available, be reduced below two hundred (200) kilowatts for any continuous period or periods of one (1) hour or more in duration, as determined by the Bureau, there shall be deducted from the total monthly demand charge, computed as provided in Article 13, for the calendar month during which said reduction occurs, the sum of four-tenths (4/10th) of one (1) mill for each kilowatt by which the delivery is reduced below two hundred (200) kilowatts for each full continuous hour that the delivery is so reduced. CONTINGENT UPON APPROPRIATIONS 21. This Memorandum of Understanding is subject to appropriations being made by Congress from year to year of moneys sufficient to do the work provided for herein, and to there being sufficient moneys available in the Colorado River Dam fund to permit allotments to be made for the performance of such work. IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Understanding to be executed the day and year first above written. Bureau of Reclamation, Commissioner of Reclamation. the United States in said Boulder Power Plant, pursuant to the contracts of April 26, 1930 and November 5, 1931, to be operated in whole or in part by Edison Company for the use of Nevada Company, the operation by Edison Company of the machinery and equipment described and installed pursuant to said supplemental contract of July 22, 1937, known and designated as Unit A-8, for the benefit of said Nevada Company, shall be and constitute a complete fulfillment of Edison Company's obligations under said contracts of April 26, 1930 and November 5, 1931, to generate energy for said Nevada Company. If at any time hereafter additional machinery and equipment are installed by the United States for operation, in whole or in part, by Edison Company for the use of Nevada Company, then the proportions of the costs incurred by Edison Company in the operation and maintenance of said power plant, machinery and equipment that shall be paid by Nevada Company to the United States for credit to Edison Company as hereinabove agreed to shall be readjusted. 22. This agreement shall be effective as of June 1, 1940, and, unless and until modified or terminated as herein provided, shall remain in effect so long as both the Edison Company's existing lease of the Boulder Power Plant and said Nevada Company's contract of November 5, 1931, remain in effect. If at any time hereafter during the period this agreement is in effect either of the parties make written demand upon the other party for an adjustment of the proportions of said costs as herein agreed to, and the parties shall fail to agree upon different proportions, new proportions shall be determined by the Secretary of the Interior, and thereupon this agreement shall terminate, but, in such case, the proportions as herein agreed to shall remain in effect until different proportions are determined by the Secretary of the Interior. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their officers thereunto duly authorized and their corporate seals to be hereto affixed, the day and year first above written. SOUTHERN CALIFORNIA EDISON COMPANY LTD. (Signed) W. C. MULLENDORF, Vice President. Attest: (Signed) CLIFTON PETERS, Secretary. THE NEVADA-CALIFORNIA ELECTRIC CORPORATION, (Signed) F. O. DOLSON, Vice President. Attest: (Signed) H. DEWES, Asst. Secretary. [SEAL] Legal Features Approved: COIL, General Counsel. [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, |