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<br />('l") <br />Cf'; <br />N <br />c:'J <br /> <br />c <br /> <br />maintain and replace these structures with due allowance for <br /> <br />fluctuation in price levels during the period; and finally of a <br /> <br />method of computation ~nthin the purview of the Adjustment Act. <br /> <br />These determinations have been made and are expressed and <br /> <br />explained in the following text. Their effect is shown in the <br /> <br />attached tabulation marked "Financial Operation Study for <br /> <br />Determination of Energy Rates". <br /> <br />Firm Energy <br /> <br />Under the existing contracts the quantity of firm energy <br /> <br />available is assumed to be 4,330,000,000 kw-br.for the first <br /> <br />full year of operation and for each succeeding year the assumed <br /> <br />amount is diminished by 8,760,000 k\~-hr. These assumptions were <br /> <br />based, first, on the probably available water and head conditions <br /> <br />at Boulder Dam and, second, on an efficiency of 83 percent at <br /> <br />which the electric generating plant would convert this falling <br /> <br />water into electrical energy delivered at transmission voltage <br /> <br />to the allottees' lines. <br /> <br />However, information submitted at the Los }~geles hearings <br /> <br />in 1940 indicates that, due to the impossibility of accurately <br /> <br />foreoasting weather conditions during the 50-year period and the <br /> <br />time and extent to which upstream diversion may be made, the <br /> <br />originally assumed quantities of water rnay or may not be con- <br /> <br />tinuously available, and that deficiencies of unpredictable <br /> <br />magnitude may occur in periods of prolonged drought. A support- <br /> <br />able conclusion as to the absolute dependability of water supply <br /> <br />8 <br />