B-122254, AUG. 29, 1956

B-122254, AUG. 29, 1956

TO CENTRAL ELECTRIC POWER COOPERATIVE:

REFERENCE IS MADE TO OUR LETTER OF JULY 26, 1956, TO YOU, CONCERNING CLAIMS AND COUNTERCLAIMS BETWEEN THE CENTRAL ELECTRIC COOPERATIVE AND THE SOUTHWESTERN POWER ADMINISTRATION, DEPARTMENT OF THE INTERIOR. YOU WERE ADVISED THEREIN THAT THE DEPARTMENT OF THE INTERIOR HAD INFORMALLY REQUESTED AN OPPORTUNITY TO SUBMIT A BRIEF SETTING FORTH IN DETAIL ITS VIEWS IN THE MATTER. YOU WERE ALSO ADVISED THAT WE HAD GRANTED SUCH REQUEST AND THAT YOU WOULD BE GIVEN AN OPPORTUNITY TO PRESENT YOUR VIEWS AND COMMENTS ON THE MATTERS CONTAINED IN THE BRIEF.

ACCORDINGLY, THERE ARE ENCLOSED FOR SUCH COMMENTS AS YOU CARE TO EXPRESS COPIES OF THE FOLLOWING: LETTER OF AUGUST 16, 1956, TO THE COMPTROLLER GENERAL FROM THE ADMINISTRATIVE ASSISTANT SECRETARY OF THE INTERIOR; THE ABOVE-REFERRED TO BRIEF FROM THE DEPARTMENT OF THE INTERIOR; AND LETTER DATED JUNE 13, 1956, FROM THE ADMINISTRATOR,SOUTHWESTERN POWER ADMINISTRATION, TO OUR CLAIMS DIVISION.

WE WOULD LIKE PARTICULARLY TO CALL TO YOUR ATTENTION PAGE 11 OF THE BRIEF, WHEREIN IT IS STATED THAT "THE DRAFTS OF THE AMENDED CONTRACTS CONTEMPLATE THE PAYMENT OF THE REA LOANS, WITH INTEREST, TOGETHER WITH OTHER EXPENSE ITEMS WHICH, IN EFFECT, WILL GIVE TO EACH GENERATING AND TRANSMISSION COOPERATIVE ECONOMIC BENEFITS AND ADVANTAGES EQUAL TO OR GREATER THAN THOSE GRANTED THE COOPERATIVES UNDER THE ORIGINAL CONTRACTS.' IT IS UNDERSTOOD THAT THIS STATEMENT REFERS TO SECTION 19 OF A PROPOSED AMENDATORY AGREEMENT,"CENTRAL LEASE AMENDMENT, CENTRAL SPA DRAFT NO. 5, JULY 13, 1956.' WE HAVE BEEN INFORMALLY ADVISED BY SOUTHWESTERN THAT IF THE "AMENDATORY GREEMENT" IS EXECUTED BY YOU AND SOUTHWESTERN, YOU WILL, UNDER SECTION 19 THEREOF, RECOUP AMOUNTS INVOLVED IN YOUR PRESENT CLAIM. HENCE, EXECUTION OF THE "AMENDATORY AGREEMENT" MAY HAVE THE EFFECT OF DISPOSING OF YOUR CLAIM AGAINST SOUTHWESTERN, AND YOUR VIEWS, IN THIS REGARD, ARE PARTICULARLY REQUESTED.