nower. Mr. Coc« also discussed the request by the Board of Directors
of OVEC that the ComptrcHer General and the AEC General Counsel
considcr tne original contract and state whether A™C has the legal right to
waver inte such a contract. Mr, Bloch aud Mr. Cook then discussed
severzl questions raised by Mr. Murray on these matters. In answer
to a question by Mr. Murray, Mr. Bloch said that OVEC would not be
able to dispose of this excess power ona firm basis since it would be
obligated to AEC. Mr. Cook observed that .EC would, after this
additional agreement had been concluded, have a contract for the full
production of the plant.
Mr. Murray said he believed the contract should be reviewed
by the Commission after receipt of the Comptroller General’s opinion.
Mr. Strauss observed that the General Manager might not be able to
submit the contract for Commission action without losing the right
to contract for this power. Mr. Bloch said that AEC would lose this
right about the middle of February. Mr. Murray said that after an
outside group had looked at the contract and made suggestions concerning it, he would like to review it.
After further discussion, the Commission:
a.
Authorized the General Manager to approve
execution of the proposed Additional Power Agreement
attached as Appendix ‘'C’’ to AEC 508/15 subject to review
of this agreement by the Commission following receipt of
the opinions referred to in d belew;
b.
Noted that the FPC has advised that the rates,
terms, and conditions appear to be fair and reasonable
to the goverament;
c.
Noted that the Comptroller Genera!’s opinion
wilt be requested as indicated in paragraph 1 of
AEC 508/16;
d.
Noted that after receipt of the Comptroller
General'scpinion and the submission of an opz:ion
by the AEC General Covnsel, and assuming that the
Comptroller General’s opinion will be favorable, the
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F336