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<br />l' <br />CX'l <br />C\1 <br />C'.~ <br /> <br />c <br /> <br />The Boulder Canyon Project Act under which the existing <br /> <br />contracts are drawn provides, with respect to rates, charr;es, <br /> <br />and the disposition of income, that rates and charges for <br /> <br />electrical energy shall be fixed on the basis justified by <br /> <br />competitive conditions at distributing points or ccmpetitive <br /> <br />centers and that income shall be disposed to operate and main- <br /> <br />tain the project, to repay advances to Colorado River Dam Fund <br /> <br />to the Treasury of the United States within 50 years at 4 percent <br /> <br />interest, and that the excess revenues if any shall be disbursed <br /> <br />for other specified purposes. <br /> <br />The Project Act allowed the electric generating units to be <br /> <br />. operated under lease and the cost of this operation by the lessees, <br /> <br />including amortization of the construction cost of such machinery <br /> <br />and equipment with interest, was distributed among the allottees. <br /> <br />The Adjustment Act of 1940, with which we are immediately <br /> <br />concerned, modifies the provisions of the Project Act with <br /> <br />respect to the basis of. rates, charges, disposition of revenues, <br /> <br />ffild conditions under which the electric generating plant will be <br /> <br />operated. Competition is no longer the basis for rates and <br /> <br />charges but the income must be sufficient to operate and maintain <br /> <br />the project, prGvide certain specified annual sums for payment to <br /> <br />the States of Arizona and Nevada and into "Colorado River <br /> <br />Development Fund" and finally to repay to the Federal Treasury <br /> <br />the advances made to Colorado River Dam Fund, less ~25,OOO,OOO <br /> <br />allocated to flood control, with interest at 3 percent during a <br /> <br />2 <br />