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<br />3781 <br /> <br />Nathan R. !largold. <br /> <br />-4- <br /> <br />!lay 16, 1938 <br /> <br />(Section 5. Subdivision A, Parabraph 2) it VlflS provided that the contracts <br />as ~ade should bo subject to revisien of rates at the end of the first <br /> <br />fifteen-year period and at each tOll-year peried thereafter upon donand ef <br /> <br />oither party thereto, such roadjust~onts of rates to be either u~'mrd or <br /> <br />daMmvurd. The rates for falling water as spocifiod in tho contracts aro <br /> <br />1.63 mills por kilowatt hour for firm power and 0.5 mills per kilowatt <br />hour for socondary po\ror. iVhatover may have boen tho formula which pro- <br /> <br /> <br />duced the rate of 1.63 mills por kilowatt hour for firm power, it is evi- <br /> <br /> <br />dont that there ,vas no oxact formula employod to arrivo at tho rate of 0.5 <br /> <br /> <br />mills per kilowatt hour for secondary power. <br /> <br />If tho State of California or its agoncios should arguo that tho <br /> <br /> <br />prico of firm powor is too high" this would in no way impel tho conclusion <br /> <br /> <br />that tho price of socondary powur is also too high. Tho provisionsof tho <br /> <br /> <br />Bouldor Canyon Projoct Act apply as much to socondary power as"b!l firm <br /> <br />power, and if at the periods fixod for rato adjustmont, it shall appear <br />that one rato is too high and the other rate is too low, there is the <br />right, upon tho demand of either party, to have a full adjustr,wnt. This <br />right would bo complotely ~ropt avmy by tho provisions of the proposod con- <br />tracts. In tho proposed contracts it is assumed that if firm pavler rates <br /> <br />are too high thon tho socondary povror rate is too high, and such an ass~p. <br /> <br />tion, if aecepted, would deprive all interested parties of the epportuni~y <br />and right te assert te the Seeretary, or otherwiso, that the secondary <br /> <br />power was boing sold at a price below its aotual worth. <br />