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OOLORADO RlVER STORAGE PROJECT 41 insofar as that section treats of reimbursement to the Upper Colorado River Basin fund.' If we are !1t all in error in m!1king these assumptions please advise at once. Respeetfully yours, SAMUEl, B. NELSON, General Manager and Chie] Engineer. ~ SOUTHERN CALIFORNIA EDISON 00./ ' Los Angeles Calif., May 3,1962. The Honorable the SECRETARY OF THE INTERIOR, Washington, D.C. . DEAR MR. SECRETARY: Mr. Floyd E. Dominy, Commissioner of Reclamation, has forwarded to us on your behalf, pursuant to article 27 of the "General Regulations for Generation and Sale of Power in Accordance With tlJ.e Boulder Canyon Projeet Adjustment Aet," a eopy of a proposed additional regulation No.1 to said general regu- lations. Mr. Domipy also enelosed a eopy of "General Prineiples To Govern, and Operating Criteria for, Glen Oanyon Reservoir (Lake Powell) and Lake Mead During the Lake Powell Filling Period" approved by you on:April 2, 1962, of which said additional regulation No.1, upon issuanc~, is 11180 to become a part. Representatives of this eompany participated in several of the meetings whieh were held by the Bureau of Reelamation in the eourse of the preparation of the above-mentioned general principles and we are familiar with them. While we are not in agreement with some of the principles and eriteria eontained therein, we appreeiate that it may not be possible to resolve each question in a manner whieh will be satisfaetory to all interests. We wish at this time to confine our eomments to artiele 5 of these general principles and to the prol?osedadditional regulation No. 1. Artiele 5 of the '''General Prmciples to Govern, and Operating Oriteria for, Glen Oan;yon Reservoir (Lake Powell) and Lake Mead During the Lake Powell Filling Period" makes provision for an allow- ance in kind or in money in the event of a defieiency in firm energy generation at Hoover powerplant by reason of operations under said criteria. The allowances therein specified, of eourse, mayor may not fulfill the contraetul1-1 obligations of the United States to the eontrae- tors for Hoover power, depending among other things upon the timing and qnantity of de~iveries of substitute energy and the extent that the payment of inc~emental cost of energy may eompensate for the actual cost of the replaeement of eapaeity and energy, ineluding the cost of the purehase-thereof, should sneh be neeessary. The provinee and effect of such regulation, however, would not appear to be to influenee the contractual obligations between the United States and the eon tractors for 'Hoover power. Rather, sneh regulation would appear to be the direetion of the Secretary as to the manner in which the physical operations of Lake Mead and Lake Powell should be conducted and the 'allocation of eertain expenditures to the Upper Oolorado River Basin fund. On the other hand, however, the provisions whieh .are eontained in artiele 5 of said ge,neral principles and in the proposed additional .