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<br />3783 <br /> <br />Hathan R. Uargold. <br /> <br />-6- <br /> <br />I.!ay 16. 1938 <br /> <br />. <br /> <br />for the use of electrical energy from Boulder Dam. The City of Los <br /> <br />Angeles is not paying 1.63 mills per kilowatt hour for all firm power taken. <br />An examination of the records of the past year will show that the average <br /> <br /> <br />cost of current purchased by the City of Los Angeles has been but slightly <br /> <br /> <br />in excess of one mill per kilowatt hour for the falling water. <br /> <br />In the year 1937 the Department of Water and Power of the City of Los <br /> <br /> <br />Angeles published a survey of its properties and a report of its financial <br /> <br /> <br />condition. Attached hereto is a copy of page 41 of that survey and report <br /> <br /> <br />enti tIed I "BUREAU OF POWER AND LIGHT COJIBINED nrCOI.IE ACCOUNT-ESTTI,IATED BY <br /> <br /> <br />A. B. ROBERTS". It appears therefrom that, exclusive of principal payments, <br /> <br /> <br />the net income of the department for the year 1937 was estimated at 07,143,000; <br /> <br /> <br />and that this net income vlill increase during the life of the proposed new <br /> <br /> <br />oontracts until in 1952 it will approximate ;)18,000,000 per year. While the <br /> <br /> <br />City of Los Angeles is seeking modifications of the contracts to the extent <br /> <br /> <br />that would increase this net income, they are .saying to the Upper Basin .i <br /> <br /> <br />states that there never will be any money derived from the Boulder Dam to <br /> <br /> <br />apply to the "SEPARATE FUND" for the purpose of devoloping the Colorado <br /> <br /> <br />Ri ver Basin. <br /> <br />With referenoe to the oontract proposed by the lietropolitan Water <br />District, an analysis discloses that the said district is seeking long <br />deferment in the building up of its power load. During these periods the <br />demand for electricity will remain large so that there will be a substitu- <br />tion of secondary powor, at a low prico, for the firm pawer at a high price <br />