Board of Water and Power Commissioners, 40 for the Metropolitan Water District by Mr. W. B. Mathews, Mr. F. E. Weymouth, Mr. C. C. Elder, Mr. Barry Dibble, and all the directors of the district;11 and for the Southern California Edison Co. by Mr. R. J. Ballard, Mr. W. C. Mullendore, Mr. Roy V. Reppy, and Mr. F. G. Trowbridge, the following preliminary agreement was reached, on the motion of Mr. John G. Bullock, director of the District:

"Resolved, that we recommend to the Secretary of the Interior that the 64 per cent of total firm power from the Boulder Canyon project available to California interests under his allocation be divided, upon terms hereinafter set forth, as follows:

And

To the Metropolitan Water District___

Per cent of total firm power

36

19

9

64

To the City of Los Angeles and other municipalities which
have filed application----

To the Southern California Edison Co.--

Total (exclusive of unused firm power).

"Further resolved, that we recommend to the Secretary that the Metropolitan Water District be given the first call upon all unused firm power and all unused secondary power up to their total requirements for pumping into and in the aqueduct, and that any unused power of the municipalities be allocated to the City of Los Angeles, and that any remaining unused firm power or unused secondary power be divided one half to the City of Los Angeles and one half to the Southern California Edison Co.; and,

"Further resolved, that all parties hereto agree to cooperate to the fullest extent to make the Boulder Canyon project a success in all its phases; and,

"Further resolved, that this agreement is based upon the resolution already passed by the Metropolitan Water District of Southern California and accepted by the board of water and power commissioners

10 The members of the Board of Water and Power Commissioners of Los Angeles for 1930 were Dr. John R. Haynes, president; P. D. Schofield, Frank H. Brooks, and A. B. Prior. H. A. Van Norman was general manager and chief engineer. The city was represented in negotiations by E. F. Scattergood, chief electrical engineer, assisted by W. Turney Fox, special counsel, Attorney F. M. Bottorff, Engineer Panter. The contracts were reviewed for the city by Erwin P. Werner, city attorney, and his staff.

"The membership of the board of directors of the Metropolitan Water District of Southern California in 1930 consisted of: Anaheim, O. E. Steward; Beverly Hills, Paul E. Schwab; Burbank, Harvey E. Bruce; Colton, Charles A. Hutchinson; Glendale, W. Turney Fox; Los Angeles, John G. Bullock, W. L. Honnold, John R. Richards, W. P. Whitsett, O. T. Johnson, jr.; Pasadena, Franklin Thomas; San Bernardino, R. C. Harbison; San Marino, Harry L. Heffner; Santa Ana, S. H. Finley; Santa Monica, George H. Hutton.

of the City of Los Angeles whereby that district requests the City of Los Angeles at cost to generate its power requirements and to operate its transmission lines, which lines are to be paid for and owned by the Metropolitan Water District.

"The above resolution was approved March 20, 1930, by representatives of

"The Metropolitan Water District of Southern California;

"The board of water and power commissioners of the City of Los Angeles;

"The Southern California Edison Co.

This allocation may be compared with the original proposal of the Secretary as follows:

While the allocation of October 21 was stated in terms of maximum use, subject to deductions in favor of the States, the agreement of March 20 was expressed in terms of minimum use, with provisions for use of additional power in event that the States should not require the energy. The final result accords closely with that originally proposed by the Secretary. Thus, depending on the quantities used by the States of Arizona and Nevada:

The City of Los Angeles under the original allocation would have received a minimum of 15 per cent and a maximum of 25 per cent. Under the agreed allocation the city will receive a minimum of 15 per cent and a maximum of about 33 per cent (the municipalities having finally contracted for only about 4 per cent of the 6 per cent allocated to them and the city having absorbed the balance).

The Edison and associated companies would originally have received a minimum of 15 per cent and a maximum of 25 per cent. Under the agreed allocation these companies take a minimum of 9 per cent and a maximum of 27 per cent.

The smaller municipalities would have originally received 4 per cent; as finally contracted for they received that amount plus a decimal fraction.

The Metropolitan Water District would have taken a minimum of 30 per cent and a maximum of 50 per cent. Under the agreed allocation the district will take a minimum of 36 per cent, plus an option on all unused State energy and all secondary energy.

Arizona and Nevada would each originally have received 18 per cent, and each received that proportion in the final allocation.

Following the allocation agreement of March 20, 1930, the negotiation of the contracts was immediately undertaken for the Department

in Los Angeles, under the supervision of Secretary Wilbur and Commissioner Mead, by Messrs. Ely, McClellan, Richard J. Coffey, and Louis C. Hill. While this work was going forward an agreement was secured in Los Angeles on April 27, 1930, among the 11 smaller municipalities that had been allocated an option on 6 per cent of the firm energy. They agreed to divide the allocation in proportion to their consumption of energy in 1929. Ultimately, however, only Burbank, Pasadena, and Glendale 1d elected to contract. The balance of the municipalities' allocation, as stated above, was absorbed by Los Angeles.

The contracts with the City of Los Angeles, the Southern California Edison Co., and the Metropolitan Water District were finally closed on April 26, 1930, by Dr. John R. Haynes for the city, W. P. Whitsett for the district, John B. Miller for the company, and Northcutt Ely for the Department. General regulations, embodying the principal features agreed on, were promulgated April 24. Under these

41 In attendance were the following representatives:

H. H. Coffman, supervisor, Burbank.

J. H. McCambridge, superintendent public service, Burbank.

A. H. Lowe, city engineer, San Bernardino.

M. W. Edwards, director eletrical engineering, Pasadena.

Paul E. Schwab, mayor, Beverly Hills.

Arthur Taylor, construction engineer, Beverly Hills.

J. W. Price, city manager, Anaheim.

Grover L. Walters, superintendent water and lighting, Fullerton.
L. E. Miller, mayor, Santa Ana.

C. A. Hutchinson, city engineer, Colton.

J. W. Charleville, city manager, Glendale.

C. E. Kinlin, mayor, Glendale.

P. Diederich, superintendent light and water, Glendale.

R. L. Boulden, superintendent electrical department, Riverside.

Joseph S. Long, mayor, Riverside.

B. F. DeLanty, general manager, light and power department, Pasadena.
John L. Bacon, chairman, Colorado River Commission, San Diego.

E. F. Scattergood, chief electrical engineer, Los Angeles.

W. C. Mullendore, vice president, Southern California Edison Co.

W. B. Mathews, attorney, Los Angeles.

S. H. Finley, director, Metropolitan Water District, Santa Ana. 41b Burbank was represented by H. H. Coffman, supervisor; J. H. McCambridge, superintendent of public service, and James H. Mitchell, city attorney. The contract was signed by J. L. Norwood, president of the council.

41e Pasadena was represented by B. F. DeLanty, general manager, Light and Power Department, who also acted as chairman of the allocation committee for the municipalities, and by Harold P. Huls, city attorney.

41d Glendale was represented by J. W. Charleville, city manager, C. E. Kinlin, mayor, and P. Diederich, and later by Mayor Frank G. Taggart and City Attorney Bernard Brennan.

contracts 100 per cent of the firm energy was firmly contracted for by these three agencies, subject however to certain privileges in favor of the municipalities and the States. Thus, the city agreed to take and pay for 37 per cent of the firm energy, but undertook to yield 18 per cent for use by the States at any time within 50 years and to yield 6 per cent to the municipalities if they should contract before specified dates. The Edison Co. undertook a firm commitment for 27 per cent, but undertook to yield 18 per cent to the States at any time within 50 years and to yield energy to three associated companies as the four companies might agree. Thus provision was made for the future needs of Nevada and Arizona under a "drawback" arrangement which enables 100 per cent of the firm power to be sold immediately. The Metropolitan Water District undertook to take and pay for 36 per cent.

Ultimately (on November 12, 1931) the Los Angeles Gas & Electric Corporation 41e and the Southern Sierras Power Co. contracted.

41f

The municipalities, on the one hand, and the utilities on the other hand, divided their respective allocations on somewhat different bases as to secondary energy and unused State energy.

The ultimate disposition of Hoover Dam power by virtue of these contracts is shown on Table 1.

The contracts with Los Angeles, the Southern California Edison Co., and the Metropolitan Water District, carrying about $327,000,000 in revenues, represented probably the largest power transaction to date. Completed on April 26, 1930, they were brought to Washington by air and submitted to Congress immediately in support of the first appropriation; Congress was nearing adjournment.

410 The Los Angeles Gas & Electric Corporation was represented by Addison B. Day, president, and Paul Overton, general counsel.

41f The Southern Sierras Power Co. was represented by A. B. West, president, and General Counsel Coil.