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... .J.-o.,..__ lu...,,,,j MAIN AQUEDUCT 27 .. I The rates promulgated in May 1941, were 1.163 mills per kwhr for firm energy and 0.34 mills per kwhr for secondary energy. The rates are subject to periodic adjustment to reflect changes in oper- ating costs. In addition to the energy rates, allottees receiving energY".are required to pay the cost of generation as provided in the new reg- ulations. Generating costs include: (l) The :lnnuily required to amortize the C(I~t of g:eneraling equipment within [J Jl~ri{ld of 50 yenrs following its insl..dlalion; (2) The annuity rl:'quir~d to meet the cost (If replacing ~uch pClrls of the p;eneraling equipment ;.IS require replacen1fml during the 50.year period of the COIl!rflcts ending l\1t1}' 31. 1987; (3) The aeltlnl currellt cost of operJ.ling and maintaining the generating equipment ~ Generating costs are allocated to the various allottees as far as possible on the basis of equipment operated exclusively for each allottee, and for this purpose the reguiations divide the equipment into sections, the costs applying to each section being kept sep- arateiy. In case of joint use of a section the costs are allocated on the basis of kiiowatt-hours generated or agreed to be taken unless otherwise agreed by the parties affected. The original energy contracts made in 1930, gave to certain allottees the right to take energy in excess of their respective allot- ments and to pay for the energy so taken at the secondary rate. The District has consistentiy maintained that such energy should be considered to be the District's unused energy, to the extent such unused energy is available for disposiiion by the Secretary, and , that the returns should be credited to the District's account and not to the Colorado River darn fund. The new regulations substantially sustain the District's contention b,v providing that the reiurns from such sales shall be credited proportionally to any allottees not using their full allotments at the time. In recommending approval of the adjustment act the Secretary of the Interior in Aprii 1940, called attention to the several power developments on the river and recommended Government operation as a means of correlating and coordinating the use of seasonal water avaiiable at the various projects. Effectu"ting these recom- mendations the agency contract provides for the integration of the operation of Bouider power plant and other Government-owned piants downstream and for the integration of Boulder power plant operations with those of the City of Los Angeles and Edison Com- pany systems. The pumping operations of the District are not to I..