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<br />4;! S'" 0 <br />1. ..,;; <br />revenue from the sale of energy, exclusive of that used by the Gila <br />project, less one-third of the operating cost of the power plant, <br />will be credited to the District and applied to the amortization of <br />that portion of the cost of the plant chargeable to the District. <br />Should the demand for power exceed 75,000 kilowatts, the capa- <br />city of the three units, the fourth unit may be installed by the <br />United States, and in that event the District would be charged with <br />one-half of the operating expense and credited with two-thirds of <br />the revenue from the sale of all power, except that taken by the <br />Gila project. <br />It is anticipated that the net income from the sale of power will <br />amortize the District's portion of the cost within 12 to 15 years. <br />After amm-tization is completed, the District's share of the net <br />revenues is to be applied to any charges owing to the United States <br />from the District. <br />Surface excavation and the construction of the penstock tunnels <br />were started by the Bureau of Reclamation in November 1939, <br />under a contract with Clyde W. Wood, of Los Angeles, and this <br />work was nearing completion on June 30, 1940. Contracts have <br />also been let to Chicago Bridge and Iron Company for steel pen- <br />stocks in the tunnels, to the S. Morgan Smith Company for three <br />turbines, and to the Westinghouse Electric & Manufacturing Com- <br />pany for three generators. <br />The construction of the power house is being "'9.rried on by <br />Government forces. The foundations have been unwatered within <br />the power house substructure, which was bnilt while the dam was <br />under construction. The concreting plant has been erected and <br />forms partially constructed. Some delay was occasioned by a fire <br />on June 28, 1940, which destroyed the warehouse where forms <br />were being fabricated. <br />The estimated cost of the plant, with three units installed, is <br />$8,758,000, of which approximately $4,000,000 is chargeable to <br />the District. It is expected that the plant will be placed in opera- <br />tion in the summer of 1941. <br /> <br />METROPOLITAN WATER DISTRICT <br /> <br />1 <br /> <br />I <br /> <br />Geue aud Copper Basin Dams <br />The construction of the major items of these dams was completed <br />on June 30, 1938, and described in the history and first annual <br />report, but the contractor had not then finished the clearing and <br />clean-up of the reservoir areas, the placing of backfill, and the <br />installation of metalwork. During July these remaining items were <br />completed and construction equipment was removed. Testing of <br />