C.R.C.P. 26(a)(2) Disclosures of The CWCB, Case No. 02CW38

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0 8 UPDATING THE HOOVER DAM DOCUMENTS of dropping the competitive rate base for a rate fixed by the amount needed to amortize the investment allocated to power, plus costs of operation, maintenance and replacement. The Adjustment Act substituted for the old rate adjusted periodically y competitive to conditions operation, s tat stabilized for the 50 year' period from June 1, 1937, to May 31, maintenance, and replacement costs; repayment to the Treasury of reimbursable each advances, es, including Arizona interest which was reduced from 4 percent to 3 percent; $300,000 paid a lly 'I Nevada in commutation of the share of excess revenues provided for those Smens by lio 4(b) of the Proj- ec# Act; and payment of $500,000 annually to the Color a ' Repayment of the $25,000,000 allocated to flood control by Section 2(b) of the Project Act was deferred until June 1, 1987, without interest, after the 50 -year repayment period, after which time repayment shall be i. as determined by Congress. Among other features of the Act was a provision menu to Arizona and t ( the States or political subdivisions. This provision was Nevada if the project or features of it were taxed by utilized in 1970 when Clark County, Nevada, attempted (unsuccessfully) to tax the interests of the City of Los Angeles and The Metropolitan Water District in the Project. operating agreement for the Another provision (Section 9) authorized the Secretary to substitute an agency o P The agency contract wase as e reecd ut ed by May City of L ay 29, 194 1 energy contracts were entered into on the Company. ame date (the Arizona contract w xced M gencies was executed These Angeles eles with nd the The States Metropolitan Water District; t nd of Pasasaddenaena, , Burbank, Bun Glendale, L g Appendix 1 C.6 for text Southern California Edison Company and California Electric Power Company (see App of Boulder Canyon Project Adjustment Act). C. 7 Water Delivery Contracts - General 1. # . The basis of the Secretary's contracting authority is Section 5 of h inBhe oulder created by the Dam . authorizes the Secretary of the Interior to contract for the storage of w ate and for the delivery thereof for irrigation and domestic use. The Act further provides that such contracts shall .� be for "permanent service." And, of particular importance, the Act provides: i l' "No erson shall have or be- entitled to have the use for any purpose of the water stored as aforesaid ex- cept by contract made as herein stated." i E C. 7.1 Implementation of Water Delivery Contract Authority Since The Metropolitan Water District was be ts proposed Colorado Dam power j the purpose of pumping water to southern California via contract for that purpose required a water delivery contract between the Secretary and MWD. Also, to per - !;` • mit Imperial Irrigation District (HD) to contract for repayment of construction of the All-American Canal, a !s. . water delivery contract with IID was needed. Hence the need arose for negotiation of water delivery con i tracts by the Secretary. k D. California Seven Party Agreement 6 Before the Secretary entered into warter delivery contracts under the Boulder Canyo o rig a ong the f ± major in California, he requested the State to agree on a listing "California o t a re Seven Party Agreement m of ng the - major users of Colorado River waters. This w�s one by 18, 1931, which contained the following priories: