AZ vs. CA:05 California Exhibits, Vol. V; Nos. 193-247

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9 1 States shall always control, manage, and operate the same: 2 Provided, however, That the Secretary of the Interior may, 3 in his discretion, enter into contracts of lease of a unit or units 4 of said plant, with right to generate electrical energy, or, 5 alternatively, to enter into contracts of lease for the use of 6 water for the generation of electrical energy, in either of 7 which events the provisions of section 5 of this Act relating 8 to revenue, term, renewals, determination of conflicting 9 applications, and joint use of transmission lines under con- 10 tracts for the sale of electrical energy, shall apply. 11 The Secretary of the Interior shall prescribe and enforce 12 rules and regulations conforming with the requirements of 13 the Federal Water Tower Act,, so far as applicable, respect- 14 ing maintenance of works in condition of repair adequate for 15 their efficient operation, maintenance of a system of account- 16 ing. control of rates and service in the absence of State 17 regulation or interstate agreement, valuation for rate-making 1& purposes, transfers of contracts, contracts extending beyond 19 the lease period, expropriation of excessive profits, emer- 20 gency use by the United States of property of lessees, and 21 penalties for enforcing regulations made under this Act or 22 penalizing failure to comply with such regulations or with 23 the provisions of this Act. 24 Sec. 7. That the Secretary of the Interior may, in his 25 discretion, when repayments to the United States of all