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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 />002337 <br /> <br />states in pertinent part: "The Contract Rate of Delivery will be available in any hour within <br />the billing period." This means that if the "firm" electric service customer requests a <br />capacity within its minimum seasonal CROD, at any hour, and water is on order to supply <br />that capacity, the United States is obliged to make the power resource available (that is, put <br />the 'generator units on-line and release the water through them). <br /> <br />MWD is a water and power utility service district which serves a significant portion of <br />southern California. MWD is a recognized utility monopoly regulated by the State of <br />California and has a perpetual contract right to 50 percent of electric power generated at <br />Parker Dam. <br /> <br />Reclamation has the discretion to ask the Secretary of Energy to ask the electric service <br />customers to renegotiate their contracts. Presently, the funding source for operation, <br />maintenance, and replacement (OM&R) for the dams and powerplants and for WAPA's <br />associated marketing expenses is supplied through Federal appropriations. These <br />appropriations are then repaid to the Federal Treasury from power sale revenues. Beginning <br />in fiscal year 1998, there will be an administrative modification to this system; Federal funds <br />will no longer be made available for this purpose. Instead, the power contractors will <br />provide funding at the beginning of each fiscal year to cover OM&R and WAPA's marketing <br />expenses. This expense will be repaid throughout the fiscal year by power customers <br />receiving credits on their power supply statements. <br /> <br />Hoover Dam (Boulder Canyon Proiect): <br /> <br />Each electric service contract for Hoover Powerplant electric service was executed on behalf <br />of the United States by W APA. Reclamation has signed in concurrence. <br /> <br />Subparagraph 5.1.2.2 in each contract states in part: <br /> <br />"Western shall be obligated to provide regulation, ramping and spinning <br />reserves to the Contractor in quantities that can be provided by Hoover <br />Powerplant, except as provided in paragraph 5.6.2; Provided, that Western <br />may provide regulation, ramping and spinning reserves from other Federal <br />Projects on the Colorado River if such regulation, ramping and spinning <br />reserves can be made available from such other projects in the same quantity <br />and quality as if such regulation, ramping and spinning reserves were provided <br />by Hoover Powerplant, subject to the limitations of paragraph 5.6.2." <br /> <br />The limitation referenced in paragraph 5.6.2 deals with powerplant equipment emergencies. <br />Reclamation has concurred with this subparagraph. <br /> <br />The use of a "dynamic signal" means that each contractor can request its contractual power <br />entitlement on a 4-second interval, which is the industry standard time step required by the <br />Western Systems Coordination Council (WSCC). Reclamation is a fully participatory WSCC <br /> <br />31 <br />