B-122254, JUN. 26, 1957
Highlights
ARE CENTRAL ELECTRIC POWER COOPERATIVE. THERE WERE TRANSMITTED WITH YOUR DEPARTMENT'S LETTER THE MONTHLY BILLING STATEMENTS PREPARED BY THE N.W. THERE WERE INCLUDED TABULATIONS WITH REFERENCE TO PREVIOUS PAYMENTS MADE FOR THE PERIOD INVOLVED. THERE WERE ALSO TRANSMITTED TABULATIONS REFLECTING A SUMMARY OF THE TOTAL MONTHLY AMOUNTS DUE THE COOPERATIVES AS COMPUTED BY THE COOPERATIVES AND AS COMPUTED BY SOUTHWESTERN. THE BILLINGS SUBMITTED BY CENTRAL TOGETHER WITH THE ESTIMATED MONTHLY BILLINGS OF THE AMOUNTS DUE SOUTHWESTERN FROM CENTRAL FOR THE PERIOD IN QUESTION UNDER THE INVOLVED CONTRACTS WERE FORWARDED HERE BY SOUTHWESTERN BY LETTER OF JUNE 13. WE ARE ADVISED BY THE ADMINISTRATIVE ASSISTANT SECRETARY THAT THE COSTS REFLECTED IN THE BILLING STATEMENTS FURNISHED BY N.W.
B-122254, JUN. 26, 1957
TO THE SECRETARY OF THE INTERIOR:
PURSUANT TO A REQUEST CONTAINED IN OUR DECISION OF NOVEMBER 8, 1956, B- 122254, TO YOU, THE ADMINISTRATIVE ASSISTANT SECRETARY OF THE INTERIOR BY LETTER DATED MAY 29, 1957, TRANSMITTED HERE MONTHLY BILLINGS AND OTHER INFORMATION CONCERNING CLAIMS OF CERTAIN GENERATING AND TRANSMISSION COOPERATIVES.
THE INVOLVED COOPERATIVES, AS FAR AS PERTINENT HERE, ARE CENTRAL ELECTRIC POWER COOPERATIVE, N.W. ELECTRIC POWER COOPERATIVE, INC., AND WESTERN FARMERS ELECTRIC COOPERATIVE. THERE WERE TRANSMITTED WITH YOUR DEPARTMENT'S LETTER THE MONTHLY BILLING STATEMENTS PREPARED BY THE N.W. ELECTRIC POWER COOPERATIVE, INC., AND WESTERN FARMERS ELECTRIC COOPERATIVE AND THE MONTHLY BILLING STATEMENTS PREPARED BY THE SOUTHWESTERN POWER ADMINISTRATION FOR EACH OF THE TWO COOPERATIVES FOR THE FISCAL YEAR 1954 UNDER CERTAIN LEASE-PURCHASE CONTRACTS. IN ADDITION, THERE WERE INCLUDED TABULATIONS WITH REFERENCE TO PREVIOUS PAYMENTS MADE FOR THE PERIOD INVOLVED, TABULATIONS OF THE ESTIMATED MONTHLY BILLING TO AND FROM THE CENTRAL ELECTRIC POWER COOPERATIVE, N.W. ELECTRIC POWER COOPERATIVE, INC., AND THE WESTERN FARMERS ELECTRIC COOPERATIVE FOR THE PERIOD INVOLVED AS COMPUTED BY THE SOUTHWESTERN POWER ADMINISTRATION. BASED ON THE INFORMATION SET FORTH IN THE LETTER, THERE WERE ALSO TRANSMITTED TABULATIONS REFLECTING A SUMMARY OF THE TOTAL MONTHLY AMOUNTS DUE THE COOPERATIVES AS COMPUTED BY THE COOPERATIVES AND AS COMPUTED BY SOUTHWESTERN. THE BILLINGS SUBMITTED BY CENTRAL TOGETHER WITH THE ESTIMATED MONTHLY BILLINGS OF THE AMOUNTS DUE SOUTHWESTERN FROM CENTRAL FOR THE PERIOD IN QUESTION UNDER THE INVOLVED CONTRACTS WERE FORWARDED HERE BY SOUTHWESTERN BY LETTER OF JUNE 13, 1956.
WE ARE ADVISED BY THE ADMINISTRATIVE ASSISTANT SECRETARY THAT THE COSTS REFLECTED IN THE BILLING STATEMENTS FURNISHED BY N.W. ELECTRIC AND WESTERN FARMERS HAVE NOT BEEN AUDITED BY SOUTHWESTERN. WE ARE FURTHER ADVISED THAT SOUTHWESTERN CANNOT CERTIFY AS TO THE CORRECTNESS OF THESE BILLING STATEMENTS.
A COMPARISON OF THE ESTIMATED AMOUNTS DUE CENTRAL FOR THE FISCAL YEAR 1954 UNDER THE LEASE-PURCHASE CONTRACTS AS COMPUTED BY BOTH CENTRAL AND SOUTHWESTERN DISCLOSES NO DIFFERENCES. HOWEVER, AS TO N.W. ELECTRIC AND WESTERN FARMERS A COMPARISON OF THE ESTIMATED AMOUNTS DUE THESE TWO COOPERATIVES AS COMPUTED BY THE COOPERATIVES AND AS COMPUTED BY SOUTHWESTERN DISCLOSES A DIFFERENCE OF $82,357.85 AS TO N.W. ELECTRIC, AND $444,034.09 AS TO WESTERN FARMERS. IN OTHER WORDS SOUTHWESTERN ESTIMATES THAT N.W. ELECTRIC AND WESTERN FARMERS ARE DUE $272,709.05 AND $533,100.24 RESPECTIVELY FOR THE FISCAL YEAR 1954 UNDER THE LEASE-PURCHASE CONTRACTS WHILE THE TWO COOPERATIVES ESTIMATE THEY ARE DUE $355,066.90 AND $977,134.33 RESPECTIVELY.
IT DOES NOT APPEAR THAT SOUTHWESTERN HAS DISCUSSED THESE DIFFERENCES WITH THE TWO COOPERATIVES CONCERNED OR ATTEMPTED TO REACH AN AGREEMENT WITH SUCH COOPERATIVES AS TO THE AMOUNTS DUE. IT IS UNDERSTOOD THAT SOUTHWESTERN CHECKED CENTRAL'S BILLINGS AND THEN SENT AN AUDITOR TO CENTRAL'S OFFICES TO GO OVER CENTRAL'S BOOKS AND RECORDS AND VERIFY THE BILLINGS. IT APPEARS THAT THE SAME PROCEDURE SHOULD BE FOLLOWED IN THE CASE OF THE OTHER TWO COOPERATIVES. THEREFORE, AND IN ORDER THAT THE CLAIMS BEFORE US MAY BE SETTLED, IT IS REQUESTED THAT SOUTHWESTERN DISCUSS THE BILLINGS WITH THE TWO COOPERATIVES WITH A VIEW TO REACHING AN AGREEMENT AS TO THE AMOUNTS DUE AND OWING BETWEEN THE PARTIES.
IT APPEARS FROM THE ADMINISTRATIVE ASSISTANT SECRETARY'S LETTER THAT CERTAIN FACTS CONSIDERED BY SOUTHWESTERN WERE NOT CONSIDERED BY THE COOPERATIVES IN COMPUTING THE BILLINGS. IT MAY BE THAT IF THESE FACTS ARE BROUGHT TO THE ATTENTION OF THE TWO COOPERATIVES, AGREEMENT MIGHT BE REACHED BY ALL PARTIES AS TO THE AMOUNTS DUE UNDER THE LEASE PURCHASE CONTRACTS. AS INDICATED PREVIOUSLY, CENTRAL AND SOUTHWESTERN ARE IN APPARENT AGREEMENT AS TO THE AMOUNTS DUE CENTRAL AND NO REASON IS PERCEIVED WHY THE SAME SHOULD NOT BE TRUE AS TO THE OTHER TWO COOPERATIVES IF THE FACTS ARE AS INDICATED IN THE ADMINISTRATIVE ASSISTANT SECRETARY'S LETTER. IF, HOWEVER, IT IS NOT POSSIBLE TO REACH AN AGREEMENT WITH THE OTHER TWO COOPERATIVES AS TO THE AMOUNTS DUE AND OWING, THE VIEW OF THE COOPERATIVES SHOULD BE OBTAINED WITH REGARD TO ANY POINTS IN ISSUE AND BE TRANSMITTED HERE TOGETHER WITH ANY COMMENTS SOUTHWESTERN WISHES TO OFFER.
ALSO, IT IS REQUESTED THAT WE BE FURNISHED A STATEMENT SHOWING THE PRESENT STATUS OF THE APPROPRIATION ($1,200,000) TO THE CONTINUING FUND FOR THE FISCAL YEAR 1954, INCLUDING:
1. AMOUNTS PAID OUT FOR OTHER THAN PAYMENTS TO THE COOPERATIVES INVOLVED HERE;
2. AMOUNT AVAILABLE FOR PAYMENT OF THE CLAIMS OF THE THREE COOPERATIVES.
IN VIEW OF THE LENGTH OF TIME THAT HAS ELAPSED SINCE THE MATTER WAS FIRST PRESENTED HERE WE WOULD APPRECIATE OUR PRESENT REQUEST BEING HANDLED AS EXPEDITIOUSLY AS POSSIBLE.