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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />'I <br />I <br />I <br />I <br />I <br /> <br />002336 <br /> <br />This means that Reclamation is obligated to meet the Hoover, Parker, and Davis Dams' <br />power generation schedules which are produced by W AP A in accordance with existing <br />electric service contracts, subject to water availability. The released water generates power, <br />but water is not released for the sole purpose of generating power. Even though the Parker- <br />Davis electric service contracts were not signed by Reclamation representatives, the <br />contractual obligations with respect to generation scheduling are Federal obligations, and <br />Reclamation must adhere to W AP A's generation schedules as W AP A must produce these <br />schedules in accordance with the electric service contracts. Reclamation does have the <br />discretion to ask the electric service customers to renegotiate their contracts}. <br /> <br />The General section of the lOA states in pertinent part: "Changes to the agreement and the <br />appendices will be effected through Service's Regional Office and Western's Area Office." <br />Any change to the lOA would have to be agreed upon by these two offices. <br /> <br />Parker and Davis Dams and Poweq>lants: <br /> <br />The authorizing legislation of these facilities required the generation of power and granted <br />exclusive rights of the facility power capacity and energy to priority use power customers. <br />"Capacity" in this usage means the electrical generating capacity of on-line generator units, <br />whether or not they are actually producing power at any specific time. The capacity and <br />energy utilized by the Parker-Davis electric service customers is termed "firm electric <br />service power." The users have firm capacity and firm energy contracts with the <br />United States which are in effect until midnight, mountain standard time, September 30, <br />2008. These contracts were signed by the Area Manager of WAPA's Boulder City Area <br />Office (now known as the Regional Manager of Western's Desert Southwest Region). The <br />Parker-Davis electric service contracts stipulate contract rates of delivery (CROD) for each <br />firm electric service customer. The CROD for a contractor specifies the maximum number <br />of whole or partial units that must be available to supply power to that customer at their <br />specific point of power delivery. For example, if a specific hypothetical power customer had <br />a Parker CROD of 30 megawatts (MW), it would be entitled to the output of * of a Parker <br />generating unit (one whole Parker generator is 40MW) at any time during the applicable <br />season (summer or winter) delivered to the contract-specified point of power delivery. There <br />are contractual minimum summer CROD and winter CROD. The higher the seasonal <br />CROD, the more electric generator units must be operated concurrently at the associated <br />facility. <br /> <br />Each Parker-Davis electric service contract contains essentially the same language. As an <br />example, subsection 5.1 of Contract No. 87-BCA-10108 with Yuma Irrigation District is <br />entitled "Western's Energy and Capacity Obligations." Paragraph 5.1.1 of that subsection <br /> <br />lIf the United States is relieved of the electric service contractual obligations, then the <br />United States could be responsible for direct financial reimbursement to the electric service <br />contractors. <br /> <br />30 <br />