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<br />3782 <br /> <br />Nathan R. J.lo.rgold. <br /> <br />-5- <br /> <br />nay 16, 1938 <br /> <br />Undor tho conditions now oxisting on thc rivor and which, in all <br /> <br /> <br />probability \vill continuo over a very substantial period in the future, <br /> <br /> <br />the olectricity which the City of Los Angeles is attcmpting to acquiro <br /> <br /> <br />at secondary power rate is firm power. <br /> <br />The proposed contract \vith the City of Los Angelos goes further. <br />It provides that if there bo more secondary power than the City of Los <br />Angelos elects to take, the Socretary of the Interior cannot sell such <br />power without the conscnt of the City of Los Angeles. The effect of <br />such a provision is not only that the Project is deprived of a fair prico <br />for such secondary povror as the City of Los Angeles elects to consume, but <br />the City of Los Angeles would thereby be given the privilege of dictating <br />tho prico at which additional socondary power night bo sold. The sa~ ob- <br />jectien applies to the propesed contract with the Hetropoli tan Water Dis- <br />trict. <br /> <br />Tho contentions cf tho City of Los Angeles might be mor~ impressi va <br />if this oheap power were in any way ossontial to tho maintenance of the <br /> <br />city's oconomic status. In past conferenccs the Upper Basin states have <br /> <br />been told of the disadvantabcs which would result to Southern California <br />becausc ef thc compotitivo and lower rates to bc established at the BonEe- <br /> <br /> <br />villc Project. Thc fact is that the ratos rroposed to be charged at <br /> <br /> <br />Bonnoville, when appliod to nomnl oconomic use of electricity, are hib~- <br /> <br /> <br />er than the rates which the City of Les Angelos is now obligatod te pay <br />