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<br /> <br />J.633 <br /> <br />100 <br /> <br />METROPOLITAN WATER DISTRICT <br /> <br />decision. Other condemnation cases were filed and prosecuted <br />during the period covered by this report. <br /> <br />C,llifornia Legislation <br />Amendments to the Metropolitan Water District Act previously <br />have been noted. At the 1939 session, and the two 1940 speciai <br />sessions, of the state legislature, other measures were introduced, <br />which required examination and consideration as to their possible <br />effect upon the District. <br /> <br />United States Legislation <br />The Boulder Canyon Project Act, adopted in 1928, provided for <br />the lease of power priviiege at Boulder dam as one of the possible <br />methods of operation, and for the execution of contracts for elec- <br />trical energy there produced. The contracts which were negotiated <br />and executed during the years 1930 and 1931 by the lessees of the <br />power privilege and other contractors for energy, including the <br />District, prescribed rates computed to be sufficient to operate and <br />maintain the project and repay advances therefor within fifty years. <br />In 1945, and at ten-year intervals thereafter, rates were to be ad- <br />justed upon a competitive basis. <br />In 1930 and 1931 the District, although incorporated, had not <br />been financed, and its contract to take and pay for 36 per cent of <br />the firm energy was not considered in the computation of repay- <br />ment requirements. For this, and other reasons, the rates estab- <br />lished in 1930 were found to be unnecessarily high. The District <br />joined with other lessees and contractors for energy, in an effort <br />to procure a modification of the BOlilder Canyon Project Act which <br />would authorize the establishment of rates computed (taking into <br />account the District's obligation) to amortize the advances for the <br />project between 1937 and 1987. <br />After several years of negotiation between the lessees and con- <br />tractors and the representatives of the seven Colorado River basin <br />states, together with the Secretary of the Interior, the provisions <br />of a bill were agreed upon, which was enacted by the Congress as <br />the Boulder Canyon Project Adjustment Act (1940). The adjust- <br />ment act authorizes the execution of new contracts under which <br />rates may be established which will provide revenue sufficient. <br />among other things, to operate and maintain the project and to <br />amortize the investment of the Federal Government at Boulder <br />dam within the prescribed fifty-year period, interest computations <br />being on a 3 per cent basis instead of 4 per cent, the rate formerly <br />