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within the counties affected by construction of the dam and 

 reservoir, those being, Calaveras and Tuolumne Counties. In 1982, 

 the CPPA and TPPA were formed to make beneficial use of this power 

 entitlement. CPPA and TPPA are comprised of 57 local public 

 agencies including cities and counties, school, water, public 

 utility, sanitary, fire, and other special districts. A list of 

 the 57 member agencies is attached hereto. 



The U.S. Congress granted a first preference to power for 

 Calaveras and Tuolumne Counties to mitigate, in part, the negative 

 physical and economic impacts of the New Melones Project. These 

 impacts include the loss of substantial private acreage and the 

 consequent loss of resource production and taxes from these lands; 

 a loss of local. Foothill and Mountain Counties, water and power 

 production resources to outside interests; a reduction in Federal 

 cost-sharing for recreational improvements at New Melones 

 Reservoir; a loss in Whitewater rafting opportunities; and 

 increased local expenses to support emergency response services in 

 the reservoir area such as sheriff, fire, ambulance, and search and 

 rescue. 



The Flood Control Act of 1962 provides: 



That contracts for the sale and delivery of additional energy 

 available from the Central Valley project power system as a 

 result of the construction of the plants herein authorized and 

 their integration with that system shall be made in accordance 

 with preferences as expressed in the Federal reclamation laws 

 except that a first preference, to the extent as needed and as 



