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RESOLUTION NO. 2013-065 <br />RESOLUTION OF THE SOUTHERN CALIFORNIA <br />PUBLIC POWER AUTHORITY ("SCPPA") AUTHORIZING <br />(I) SCPPA TO MAKE CERTAIN PREPAYMENTS TO THE <br />BUREAU OF RECLAMATION ON BEHALF OF CERTAIN <br />AUTHORITY MEMBERS IN CONNECTION WITH THE <br />RE -FINANCING OF THE HOOVER DAM VISITOR <br />CENTER AND AIR SLOTS, (II) AUTHORIZING THE <br />EXECUTIVE DIRECTOR TO EXECUTE A NONBINDING <br />MEMORANDUM OF UNDERSTANDING ON BEHALF OF <br />SUCH AUTHORITY MEMBERS IN CONNECTION WITH <br />THE PREPAYMENTS AND (III) AUTHORIZING CERTAIN <br />RELATED ACTIONS. <br />WHEREAS, the Hoover Power Project represents a major Southern California, electric <br />energy resource originally conceived in the 1928 Boulder Canyon Project Act and modified <br />through a number of subsequent related federal enactments providing the terms and conditions <br />governing the sale of energy from the Hoover Dam; and <br />WHEREAS, a substantial number of SCPPA members receive power from the Hoover <br />Power Project, including, Anaheim, Azusa, Banning, Burbank, Colton, Glendale, Pasadena, <br />Riverside, Vernon, and the Los Angeles Department of Water and Power; and <br />WHEREAS, pursuant to the Hoover Powerplant Act of 1984, contracts for energy and <br />capacity resulting from the Hoover Uprating Project were offered by the Secretary of Energy <br />through the Western Area Power Administration ("Western") to various entities in Arizona, <br />Nevada and California as provided in the "Final Allocations of Contingent Capacity and <br />Associated Energy from the Boulder Canyon Project Uprating Program" (Federal Register <br />47,830, dated November 20, 1985); and <br />WHEREAS, the Bureau of Reclamation, an agency of the United States Department of <br />the Interior (the "Bureau"), has funded the cost of acquisition and construction of the Hoover <br />Visitors Center at the Hoover Dam and the construction of the Air Slots at the Hoover Dam <br />through borrowings (the "Bureau Debt") from the United States Department of the Treasury; and <br />WHEREAS, the Bureau Debt bears interest at rates that are substantially higher than <br />current market interest rates; and <br />WHEREAS, The payment of the principal and interest on the Bureau Debt is a <br />component of the cost of power and energy payable by the Hoover contractors, including SCPPA <br />members that receive power from the Hoover Power Project pursuant to the agreements with <br />Western; and <br />WHEREAS, the Bureau has determined that the Hoover contractors, including SCPPA <br />members that receive power from the Hoover Power Project, may prepay the Bureau Debt; and <br />