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<br />001534
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<br />938
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<br />ARIZONA LAW REnEW
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<br />(Vol 24
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<br />ver power for use within the state if a firm contract could be executed
<br />within six months.87 Nevada was unable at the time either to use or pay
<br />for one-third of the power.88 Nevada and Arizona contend., however, that
<br />in offering Nevada one-third of the Hoover power, Wilbur was actino in
<br />recognition of Nevada's "super-preference" right.89 The states assert that.
<br />in accordance with the rule that the interpretation of a statute by the ad-
<br />ministrative body implementing it is entitled to great weight,90 Wilbur's
<br />action in recognition of the "super-preference" right asserted by Arizona
<br />and Nevada is entitled to deference in interpreting the statute.91
<br />Nevada and Arizona further assert that this "super-preference" right.
<br />by its own terms, applies in all allotments of Hoover power, and did not
<br />terminate after the original allotment.92 This argument is based upon sec.
<br />tion 617d, which contemplated that new contracts would be made fifty
<br />years after the first delivery of power.93 Thus, for Arizona and Nevada.
<br />the terms of section 617d(c), which on their face apply to all contracts for
<br />the generation, sale, distribution, and delivery of electrical energy, will ap-
<br />ply on renewal, activating the "super-preference" right.94 ,
<br />
<br />Right of Renewal
<br />
<br />Closely related to, and flowing from, this argument is the contention
<br />of the two states that the "super-preference" right takes precedence over
<br />the right of contract renewal provided in section 617d(b).95 As Nevada
<br />and Arizona assert, the right of renewal granted in section 617d(b) is not
<br />absolute, but is instead qualified by the "unless" clause of that section..
<br />That clause provides that renewal need not be granted if the transmission
<br />lines and other facilities owned and used by the contractor to take Hoover
<br />power are purchased and if damages are paid for any effect on property
<br />that is not taken.96
<br />This provision had ,its genesis in two early versions of the BCP A, the
<br />
<br />87. Letter from Secretary of Ihe Inlerior R.L. Wilbur 10 Senator Oddie (Mar. 24, 1930). Us
<br />Hearings on H.R. 12902 Before House Comm. on Appropriations, 71st Cong., 2nd Sess. 80 (1930).
<br />88. See Nevada Brief. supra nOIe 8, at 120. The state therefore chose to accept tbe I~
<br />allotment wilhdrawable from Ihe allotments of Ihe City of Los Angeles and Soulhem California
<br />Edison. See Letter from Secretary of Ihe Interior Wilbur to Ihe Senale Committee on Appropria-
<br />tions, in CONTRACTS, supra note 4, at 601. See supra notes 22-35 and accompanying text
<br />89. Nevada Brief, supra note 8, at 119.
<br />90. See, e.g., Quem v. Mandley, 436 U.S. 725 (1978); Udall v. Tallman, 380 U.S. 1 (1965);
<br />Power Reactor Dev. Co. v. International Union of Elcet., 367 U.S. 396 (1961).
<br />91. See Nevada Brief, supra note 8, at 88.
<br />92. Se~ it/. at 10. ,
<br />93. See id. at 11; 43 U.s.c. fi 617d(a) (1976). Section 617d(a) provides Ihat "(n)o contract fOf
<br />electrical energy . . . shall be of longer duration than fifty years from Ihe date at which sudl
<br />energy is ready for delivery." It/.
<br />The original contract wilh Ihe City of Los Angeles was for a SO-year period. and Ihe other
<br />contracts, which took effect shortly after the energy was ready for delivery to the city, were scllcd-
<br />uled to terminate when Ihe city's did See CoNTRACTS, supra note 4, at 63; supra note 4 anol
<br />accompanying texL
<br />94. See Nevada Brief, supra note 8, at 10, 12.
<br />95. 43 U.S.C. fi 617d(b) (1976); Nevada Brief, supra note 8, at 16-17; see supra notes 43-51
<br />and accompanying text ~
<br />96. See 43 U.S.C. fi 617d(b) (1976); Nevada Brief, supra note 8, at 15-17; supra notes 43-51
<br />and accompanying text
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