Chapter 1: Summary of "The Law of the River"

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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 replacemen t d pe riodical ly b competitive conditions a rate The Adjustment Act substituted for the old rate adjuste31, 1987y sufficie to meet: operation, stabilized for the 50 - year' period from Jun er t to 1 he T eas of reimbursable advances, including interest maintenance, and replacement costs; repay which was reduced from 4 percent to 3 pe cess reve $ paid i ded a for hose ° States by Section 4(b) of the Proj- Nevada in commutation of the share of ex ect Act; and payment of $500,000 annually to the Colorado Ri SecDe n 2(b) of the Project Act was deferred Repayment of the $25,000,000 allocated to flood contr ol after which time repayment shall be until June 1, 1987, without interest, after the 50 -year repay as determined by Congress. Among other features of the Act was a provision (Sectio t States or f o r political subdiv. sionseThis to pro was Nevada if the project or features of it were taxed by the ates utilized in 1970 when Clark County, Nevada, attempted P roj e ct. ( to tax the interests of the City of Los Angeles and The Metropolitan Water District in th e P o erating agreement for the Another provision (Section 9) authorized the Secretary to substitute an agency The agency contract lease held by the City of Los Angeles and antra °� w e e terednto on p ublic au Califor same date (the Arizona contract was executed May 29, 1941. Nine energy was executed November 23, 1945) . These wer w nd t The tMetropolitan Water Distr ct; and thesetilities• of Pasadena, Burbank, Glendale, Los Angeles endix 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 }, s Section 5 of the Boulder Canyon Project Act. It P The basis of the Secretary s contracting authority i _ authorizes the Secretary of the Interior to contract and d e ° The A f provides that such on tracts and for the delivery thereof for irrigation be for "permanent service." And, of particular importance; the Act provides: pur of the water stored as aforesaid ex "No person shall have or be entitled to have the use for any cept by contract made as herein stated." E C.7.1 Implementation of Water Delivery Contract Authority eergy for purchaser of over Since The Metropolitan Water District was assu n labs proposed Colorado RivepAquDeduct na power the purpose of pumping water to southern Califo very contract between the Secrtary a contract for that purpose required a w ater ttd ct for repayment of construe on the All Ameeri a Canal, a f mit Imperial Irrigation District (IID) to con ed. Hence the need arose for negotiation of water delivery con - water delivery contract with III) was need tracts by the Secretary. D. California Seven Party Agreement t Act with i t ontracts under the Boulder Before the Secretary entered into warter delivery ci C oes of rights among the c "California A reement" of August users in California, he requested the State to agree on a tie Se en Party g major users of Colorado River waters. This r waYd one by 18, 1931, which contained the following p °'