Whereas this last session of the Congress, by writing limitations into an appropriations bill, has crippled, and if not rectified wil! amount to the repudiation of, all of the contracts, obligations and plans heretofore made and entered into: Now, therefore, be it Resolved, That this convention go on record as follows: 1. Forceably calling to the attention of the Congress the repudiation of solemnly entered into and binding contracts which have been held valid by court decision. 2. That Congress be apprised of the obligations signed and the pledges for repayment made by these co-ops and their member co-ops. 3. That Congress be further advised of the vast amount of funds spent in reliance upon congressional actions, as contained in the statutes of the United States. We respectfully urge the Congress, which is to convene in January 1954, to rectify the injustices which were set forth in the Interior Appropriations Act of the past session of the Congress so that the contracts and plans and obligations of the G. and T. co-ops may be effectuated as was intended at their inception under the laws of the United States then in force and effect. Amortization Extension Whereas the period of maximum debt repayment is rapidly approaching; and Whereas many cooperatives have been practicing area coverage, serving members in sparsely settled areas at extremely high construction costs; and Whereas there is a possibility that some cooperatives may find themselves financially pinched when the maximum debt repayment comes: Now, therefore, be it Resolved, That the National Rural Electric Cooperative Association urge Congress to consider the possibility of extending the repayment period to 50 years in order that the electric co-ops may seek relief when the need there for is established. Whereas the newly announced power policy of the Department of the Interior appears to coincide and parallel the long-standing wishes of the commercial power interests; and Whereas certain power company officials representing the commercial power industry have stated and boasted that they are in favor with those representing the recently announced new power policy; and Whereas the commercial power company lobby is on record as having used the highest paid lobby in the United States during the last year, and for the first 6 months of this year is leading all other lobby groups in expenditures for influence according to official records: Now, therefore, be it Resolved, That the delegates to the Region VIII meeting of the National Rural Electric Cooperative Association, representing approximately 100 rural electric co-ops from the States of Oklahoma, Louisiana, Arkansas, and Missouri, in annual meeting in Oklahoma City this 13th day of October 1953, officially demand a full-scale investigation of the relationship of the expensive power company lobby to the recently announced Federal power policy, an investigation of the relationship of certain leading power companies and their officials to those who blueprinted the new power policy, with a view to criminal prosecution if evidence warrants such action; and be it further Resolved, That this investigation be conducted by a proper committee of the Congress; that all evidence and circumstances of the new power policy be pursued without bias as to political affiliation. Interest rates MANAGEMENT Whereas there has been introduced in Congress a bill, which specifically provides that the interest rate to co-ops shall be increased from 2 percent to 4 percent; and Whereas the interest rate paid by rural electric cooperatives in the past on funds borrowed from the United States Treasury has been in excess of the rate paid by the Treasury on such funds, resulting in a net profit to the Treasury: Now, therefore, be it Resolved, That we oppose to the fullest extent any effort or legislative action which will result in increased interest rates on loan funds to rural electric cooperatives. INSURANCE AND EMPLOYEE WELFARE Job training and safety national funds Whereas the appropriations for vocational education are made under the George Barden Act of 1946 as part of the appropriations for the Department of Health, Education, and Welfare; and Whereas the funds for our statewide vocational education programs are allocated to the States and matched by the States; and Whereas the funds are used to pay part of the salaries of vocational instructors, including the job training and safety instructors, and the agricultural and homemaking teachers; and Whereas the Federal vocational educational $25-million appropriation for this purpose met with very limited support in the past session of Congress: Now, therefore, be it Resolved, That we urge upon the Members of Congress a continuation of this fine work, and that appropriations be made to implement this program. GENERAL Whereas NRECA policies with regard to power problems result from the many State, regional, and NRECA conventions over the many years: Now, therefore, be it Resolved, That we affirm our support of NRECA and the power policies adopted to this time. APPRECIATION Whereas the eighth region of the National Rural Electric Cooperative Association is completing a very successful annual meeting in Oklahoma City; and Whereas the delegates have enjoyed the fine climate, the general friendliness, and the opportunity to visit and explore this beautiful and historic city: Now, therefore, be it Resolved, That we express our appreciation to our host city and to the Biltmore Hotel who extended their aid and hospitality, and to all others who contributed to the success of the meeting, including our friends and exhibitors, both suppliers and cooperative groups; and be it further Resolved, That we express our appreciation to Clyde Ellis and his efficient staff for their fine work in making this a very successful meeting; and be it further Resolved, That we express our appreciation to our host, the Oklahoma Statewide Electric Cooperative, its president, Doyle Pope, its manager, Floyd Gibson, and his staff for their hospitality and consideration of all delegates and visitors Whereas the Oklahoma senior Senator, Robert S. Kerr, has consistently fought our battles in the Senate committee, on the Senate floor, and throughout the Nation wherever and whenever it became necessary: Now, therefore, be it Resolved by the eighth region of the National Rural Electric Cooperative Association, assembled in the Biltmore Hotel at Oklahoma City, this 13th day of October 1953, That we convey to Senator Kerr our deep and sincere appreciation for his labors in our behalf, and commend him upon the highly satisfactory manner in which he has so efficiently aided us in our program. Resolved, That this convention extend to Administrator Ancher Nelsen a vote of thanks for his efforts in coming to Oklahoma City and delivering a forthright, enlightening address. EXHIBIT M MINUTES MISSOURI BASIN STATES REA-FINANCED RURAL ELECTRICS OMAHA, NEBR., October 22, 1953. The meeting at the Rome Hotel was called to order at 10 a. m. by Dale Erlewine, president of the Nebraska Rural Electric Association, the host State. Mr. Erlewine stated that the first order of business was the naming of some person to be chairman of the meeting. It was regularly moved, seconded and carried unanimously that Dale Erlewine act as chairman of the meeting, and that H. Vance Austin act as secretary of the meeting. Mrs. John Clema, keeper of the roll, reported that representatives of rural electrics were present from the 10 Missouri Basin States: Colorado, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, South Dakota, and Wyoming. Representatives of each State were heard from, expressing their problems as to the application of the new power policy and marketing criteria to the rural electrics in their respective States. All States in which federally generated power was now being purchased by the rural electrics pointed out that the new policy and criteria would increase the cost of power and also make the contracting electrics purchase far more power than they would need for the first years or face the lack of power for future expansion. Kansas representative pointed out that whereas Kansas had hoped and planned and negotiated with the Bureau of Reclamation for Federal power in Kansas, the present pronouncement indicated that Kansas would have no power available from Federal generation. Nebraska representatives pointed out that under the new policy and criteria the transmission lines badly needed by some rural electrics in Nebraska would not be built, since new transmission lines are contemplated only if the available power could not be sold by the Government at the bus bar or over presently existing lines to either preference or nonpreference customers. General review was had of the power policy and the marketing criteria, and report was made by representatives from the various States as to results of contacts with Government representatives, and also with Governors, Senators and Representatives from the various States, and it was reported that a number of Governors, Senators, and Representatives indicated that they would use their influence to see that the power policy and marketing criteria were modified or dropped completely. However, it was clearly pointed out that no commitments had as yet been made-or even hinted at-by the United States Department of Interior, and that all States, nationwide as well as basinwide, would need to get behind the move to force the Department to change the policy and criteria. After considerable discussion the following resolution was regularly moved, seconded, and carried: RESOLUTIONS OF MISSOURI BASIN STATES-REA-FINANCED RURAL ELECTRICS (Colorado, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, South Dakota, and Wyoming) OMAHA, NEBR., October 22, 1953. OPPOSING THE NEW POWER POLICY Whereas the United States Department of the Interior has recently announced a new power policy and marketing criteria for federally generated power, and Whereas the changes directed by that new power policy and marketing criteria, which will adversely concern the rural electrics have been announced since Congress adjourned and are announced to be put into effect before Congress will again convene, and Whereas the Department has developed and announced such new power policy and marketing criteria without any consultation whatsoever with rural electric. cooperatives presently contracting or negotiating to contract for electric power, as to the effect of such changes on them, and Whereas this new power policy actually constitutes an attack that is all out insofar as the claimed powers of the Secretary of the Interior will allow, and is a deliberate and open attack upon the preference clause as expressed in the various Federal power statutes (some of which have been in effect and active use for more than 50 years) and so important to the farmers of this country, and Whereas the elimination of the withdrawal clause from the contracts with nonpreference customers and the decision to sign long-term contracts with nonpreference customers for all remaining firm energy is a partial abrogation of the rights of preference customers, and Whereas this new policy will affect the rural electrics in the following ways: (1) It will force them to void old power contracts with the Department or agency thereof and accept new contracts or face the loss of all power from the Government projects within 3 years; a loss so devastating as to leave no doubt that the new contracts can be imposed. (2) It will force all of the rural electrics to contract for power capacity beyond their present needs or face the prospect of power shortages within a very short time. This forced contracting for more power than is now required will result in a sharp increase in power costs to rural people; however, this increase in power costs to the members of the rural electrics will be accompanied by an actual decrease in Federal revenues from power sales-the benefits of this decrease in Federal revenues being turned over to the profit utilities in the form of cheap, "dump" energy. (3) The net effects of the forcing of new contracts is a blow to the entire rural electrification program. The financial feasibility of the new extensions to farmers not yet served, the financial stability and loan repayment ability of already existing rural electric systems and the possibility of maintaining good service to existing customers, are all endangered by this new policy. For this policy not only increases our power costs but places a ceiling on our power supply insofar as existing and authorized Federal generation projects are concerned: Now, therefore, be it Resolved, That we request that the Department of the Interior delay the effective date of this new and strange power policy and marketing criteria for 1 year from its presently stated effective date of January 1, 1954, and that the Department continue to operate insofar as all of its electric power sales are concerned, under the policies in effect prior to the announcement of this new policy, and that during the year we cooperate fully with the Department of the Interior in a study of power policies and marketing criteria to determine if changes be needed considering a sound rural electrification program and all factors of public interest; and be it further Resolved, That if in the judgment of the interim committee of this assembly a satisfactory delay is not granted in effective date of the new power policy and marketing criteria, that an injunction be sought against the proper persons and agencies to prohibit them from making any changes in presently existing power supply contracts with any agency of or under the Department of the Interior, or from making any new contracts for the sale of power except in accordance with the power policy in existence prior to these new pronouncements; and be it further Resolved, That since the new power policy and marketing criteria is not a proper interpretation of the power policy built up by Congress and administrative action over the past 50 years, that we, working with all other groups throughout the Nation, similarly interested in the development and purchase of federally generated power, appeal to the Congress of the United States for a clarification and directive reinstating and maintaining the power policy that has been so long in existence. INTERIM AND PERMANENT COMMITTEE APPOINTED It was regularly moved, seconded, and carried that a committee of 10 persons be named, 1 to be named by representatives of each State, to be the interim committee named in the preceding motion, and that the committee be also the permanent committee of this meeting, to take action that may be needed to implement the instructions of this meeting, and to call another meeting if necessary, in which case notice would be given to the statewide rural electric organization officers of the 10 Missouri Basin States, as had notice for this meeting, and further that this committee be charged with making arrangements for representatives of these 10 Missouri Basin States to meet at the earliest possible time with President Eisenhower and Secretary of the Interior McKay. ALL STATE GROUPS TO SEE OWN OFFICIALS IMMEDIATELY It was regularly moved, seconded, and carried that representatives here take the responsibility of having their statewide rural electric organization confer with their own Governor, United States Senators, and United States Representatives in regard to the power policy and marketing criteria, at the earliest possible time. ALSO TO SEE FARM ORGANIZATIONS It was regularly moved, seconded, and carried that representatives here take the responsibility of having their statewide rural electric organization confer at the earliest possible time with the farm organizations in their own States to give to them the effect of the new power policy and marketing criteria on the rural electrification program, and seeking their assistance in both grassroots understanding of this threat to the rural electrics and in getting the policy and criteria. changed back. COPY OF MINUTES TO GO TO ALL PRESENT It was regularly moved, seconded, and carried that a copy of the minutes of this meeting be sent to each person present as soon as they can be prepared. There being no further business to come before the meeting adjournment was had. DEAR MR. HANLON: On October 1, 1953, the Bureau of Reclamation announced the availability of firm power for sale in the eastern division of the Missouri River Basin for a 3-year period in amounts as follows: 1954. 1955. 1956_ Total for 3 years Kilowatts 55, 000 85,000 70, 000 210, 000 The above amounts are approximate and the exact delivery dates are not guaranteed. Applications for this capacity will be accepted by the Bureau up to January 1, 1954, and the marketing of the power will be on the basis of marketing criteria announced September 15, 1953. It is expected that the Bureau will make future announcments of the availability of additional power as new generating units in the area completed. The basic facts related to this new marketing policy statement as it affects your cooperative in its need for additional capacity are as follows: 1. Available power will be disposed of in the following priority; (a) Present power comitments under existing contracts of all customers, to the extent requested by the customer, will be amended in new 20-year term contracts. (b) Remaining available power will be allocated to fill requests of (i) preference-type consumers and (ii) non-preference-type customers within existing transmission areas or areas covered by existing wheeling arrangements. (c) Remaining power will be disposed of to customers in the same order of preference over facilities to be constructed by the Bureau or by new wheeling arrangements. 2. New contracts will be for 20 years; there will be no provision for recapture of power for sale to preference consumers; sales will be restricted to normal system load factors; contracts will state that it is the customer's responsibility to have or secure other sources of power to meet his needs in excess of amounts stipulated in Bureau contracts. 3. Firm power and energy available for sale will be based on average year hydro conditions and purchase of thermal power for firming will be kept to a minimum. Peaking capacity (the system capacity on a minimum water year basis in excess of capacity for firm power) will be sold only to customers having generating capacity and will carry no energy. 4. the following contract minimums for capacity will be imposed January 1, 1954, on all existing and new contracts: $7.20 per kilowatt per year of contract delivery, the contract rate of delivery being considered as follows: First year, 80 percent of full contract rate of delivery Rates subject to review and adjustment as often as necessary and at least once in every 5 years. 5. The Bureau will continue to absorb not more that 1.0 mill per kilowatt-hour and associated losses under wheeling arrangements for firm power only. In lieu of wheeling over transmission type cooperatives or public bodies to nonprofit customers, new type arrangements will be made for direct sale to the transmission cooperative or public body at major interconnection points with the Bureau. The contractor will be given a discount from the rate schedule otherwise applicable in an amount equal to the savings made by the Bureau (in transmission wheeling |