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B-214876 1 (1984-09-04)

handle is hein.gao/gaobadlws0001 and id is 1 raw text is: THU COMPTROLLER UENENAL DECISION OP THE UNITED STATUS o , WAGHINGTON. 0.C. 20548 FILE: B-214876 OATE: September 4, 1984 MATTER OF: Contract for development of geothermal resources at Naval Weapons Center, DIGEST: China Lake, California 10 U.S.C. S 2481 does not bar the sale of elec- tricity in excess of the needs of the Naval Weapons Center, China Lake, California, to Southern California Edison Company (SCE) by a Navy contractor. Congress intended that the excess energy generated at China Lake would be credited to other defense facilities, and there is no legally significant difference between the transfer of excess power by wheeling over SCE transmission lines to naval facilities remote from China Lake and the sale of such excess electricity to SCE Dy the contractor with sub- sequent purchase of identical amounts of elec- tricity by the contractor at remote locations for delivery to the Navy. By letter dated April 4, 1984, the Naval Facilities Engi- neering Command requested our views as to the propriety of a modification to a contract with the China Lake Joint Venture for the development of the geothermal resources at the Naval Weapons Center, China Lake, California. The contract, as pre- sently drafted, provides for expansion of the electrical gen- erating facility at the China Lake Weapons Center to 75 MW and requires delivery by the contractor of electricity excess to the needs of China Lake to other naval facilities in Cali- fornia. Because delivery of excess electricity to other naval facilities would require its sale to the Southern California Edison Company (SCE) and the purchase of similar amounts of electricity from that company or other utility companies at other locations, the Command has askea whether modification of the existing contract to that effect would be permissible. Specifically, the Command has askeo whether such an arrangement would be in accord with 10 U.S.C. S 2481 (1982), which autho- rizes the sale of Navy generated electricity under limited cir- cumstances. For the reasons discussed below, we conclude that 10 U.S.C. S 2481 is not a bar to the proposed electricity de- livery arrangements. The statutory provisions which authorize the development of geothermal resources by Department of Defense agencies are 10 U.S.C. SS 2394 and 2689. Section 2689 provides that--

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