B-196345 Contractual Arrangements Relating to Sale Of
is ,[GEN1RAL OF UN ITED AT43L \ X~~~~~~~~~~~~~VA~fl1tlG70t4, Vteet 24544 13-196345 flay 1, 1980 The Honorable Abraham K~azen, Jr. House of IRepresentafires Dear 1\r. Kazen: 8ittI*,O .Plblo rAd IIIg* This is in answer to your request for our *pinion ot whether contracts for the disposition and trvelztsmission of powyer and energy from the Falcon and Amistad hydro-eleculec p~rojects violate the preference provision of the Falcon-Amis tard Darn Act, (Act'of June 18, 1954, Pubu. L. No, 83-406, 68 Sta~t 255, as ame nded by the Act of December 23, 1963, Pzub, L. No. 88-237, 77 Stat.t 475). as well1 axs on certain relatend issues, We have studied the view's of all the parties concerned as well as the relevant statutory provisions and other applicable documents. Wye do not believe the contracts in question vriolate either the }preterence clause or any other applicable stattltory provision, This and your other questions are addressed belowg in the, order, they appear In your, letter. Backgrouund On August 9, 1977, the SIouthd-Texas Electric Cooperative, Ines (OTE C) and Medina Electric Cooperative'.Inc. (MEC) contracted with the United States Burcau of Reclamation, De6'parttennt of Interior (Burceau), to pi~r- 'V,',Wchase all of then pouver and energy',(hereafter referred to'collectively £qs powver) to be generated at the AmilI'tad and Falcon hydro-'blectric facli~ties after the Amistad plant Is placed Ipto coffinercial operation,, The Ce'tral Power and Light Company (CPLi oisvn's the only transmission lines in the vicinity of either the Falcon or Amistad dams and construction of dupli-.
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