B-122254, JUL. 24, 1956

B-122254: Jul 24, 1956

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TO CENTRAL ELECTRIC POWER COOPERATIVE: REFERENCE IS MADE TO OUR LETTER OF APRIL 6. ADVISING THAT WE HAD DETERMINED THAT APPROPRIATED FUNDS WERE AVAILABLE TO IMPLEMENT CONTRACTS NOS. OUR CLAIMS DIVISION ADVISED YOU THAT IT WAS NECESSARY TO OBTAIN A FURTHER REPORT IN THE MATTER FROM SOUTHWESTERN AND TO REQUEST SOUTHWESTERN TO SUBMIT REVISED BILLINGS COMPUTED UNDER THE TERMS OF THE ABOVE REFERRED-TO CONTRACTS. THAT SINCE NEITHER CENTRAL NOR SOUTHWESTERN HAD PERFORMED ANY ACT OR FULFILLED ANY OBLIGATION UNDER CONTRACTS ISPA 305 AND 306 IT WAS NOT POSSIBLE TO DETERMINE AMOUNTS DUE BETWEEN YOU AND SOUTHWESTERN IN ACCORDANCE WITH THE TERMS OF THE SAID CONTRACTS. SOUTHWESTERN SUBMITTED BILLINGS SHOWING AMOUNTS CENTRAL WOULD HAVE BEEN ENTITLED TO HAD OPERATIONS BEEN CARRIED ON UNDER ISPA 305 AND 306 DURING FISCAL YEAR 1954 BUT FOR THE REASON SET FORTH ABOVE STATED THAT SUCH BILLINGS WERE NOT APPROVED.

B-122254, JUL. 24, 1956

TO CENTRAL ELECTRIC POWER COOPERATIVE:

REFERENCE IS MADE TO OUR LETTER OF APRIL 6, 1956, TO YOU, ADVISING THAT WE HAD DETERMINED THAT APPROPRIATED FUNDS WERE AVAILABLE TO IMPLEMENT CONTRACTS NOS. ISPA 305 AND 306 AND THAT INSTRUCTIONS HAD BEEN ISSUED TO OUR CLAIMS DIVISION TO RECOMPUTE THE AMOUNTS DUE FROM SOUTHWESTERN AND CENTRAL TO EACH OTHER FOR THE PERIOD JULY 1, 1953, THROUGH JUNE 30, 1954, IN ACCORDANCE WITH THE TERMS OF THE SAID CONTRACTS.

BY LETTER OF APRIL 27, 1956, OUR CLAIMS DIVISION ADVISED YOU THAT IT WAS NECESSARY TO OBTAIN A FURTHER REPORT IN THE MATTER FROM SOUTHWESTERN AND TO REQUEST SOUTHWESTERN TO SUBMIT REVISED BILLINGS COMPUTED UNDER THE TERMS OF THE ABOVE REFERRED-TO CONTRACTS. SOUTHWESTERN, BY LETTER DATED JUNE 13, 1956, ADVISED CLAIMS DIVISION, IN EFFECT, THAT SINCE NEITHER CENTRAL NOR SOUTHWESTERN HAD PERFORMED ANY ACT OR FULFILLED ANY OBLIGATION UNDER CONTRACTS ISPA 305 AND 306 IT WAS NOT POSSIBLE TO DETERMINE AMOUNTS DUE BETWEEN YOU AND SOUTHWESTERN IN ACCORDANCE WITH THE TERMS OF THE SAID CONTRACTS. SOUTHWESTERN SUBMITTED BILLINGS SHOWING AMOUNTS CENTRAL WOULD HAVE BEEN ENTITLED TO HAD OPERATIONS BEEN CARRIED ON UNDER ISPA 305 AND 306 DURING FISCAL YEAR 1954 BUT FOR THE REASON SET FORTH ABOVE STATED THAT SUCH BILLINGS WERE NOT APPROVED.

SUBSEQUENTLY THE DEPARTMENT OF INTERIOR INFORMALLY REQUESTED A CONFERENCE CONCERNING THE MATTER AND DURING THE CONFERENCE REPRESENTATIVES OF THE DEPARTMENT AND SOUTHWESTERN INDICATED THE DEPARTMENT WAS STILL OF THE VIEW THAT APPROPRIATED FUNDS WERE NOT AVAILABLE TO IMPLEMENT THE CONTRACTS IN QUESTION AND ALSO ADVANCED THE CONTENTION SET FORTH IN THE ABOVE REFERRED- TO LETTER OF JUNE 13, 1956, FROM SOUTHWESTERN TO OUR CLAIMS DIVISION, RELATIVE TO THERE BEING NO ACTS PERFORMED OR OBLIGATIONS FULFILLED BY EITHER THE GOVERNMENT OR CENTRAL UNDER THE SAID CONTRACTS.

THE DEPARTMENT INFORMALLY REQUESTED THAT WE TAKE NO FURTHER ACTION IN THE MATTER UNTIL IT HAD AN OPPORTUNITY TO FORMALLY SUBMIT A BRIEF SETTING FORTH IN DETAIL ITS VIEWS. WE GRANTED THE DEPARTMENT'S REQUEST BUT ADVISED THAT WE WOULD GIVE YOU AN OPPORTUNITY TO PRESENT YOUR VIEWS AND COMMENTS ON THE MATTER CONTAINED IN THE BRIEF.

ACCORDINGLY, YOU ARE ADVISED THAT WE WILL TAKE NO FURTHER ACTION TOWARD ISSUING A SETTLEMENT PENDING RECEIPT OF THE DEPARTMENT OF INTERIOR'S ABOVE REFERRED-TO BRIEF AND, SUBSEQUENTLY, RECEIPT OF YOUR VIEWS AND COMMENTS THEREON.

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