Merced Irrigation District v. San Joaquin Light & Power Corp.

This is an appeal from a judgment upon a contract for the sale and delivery of electric energy.

The respondent is' an irrigation district organized .and operating under the California Irrigation Act. The appellant is a public utility corporation organized for the purpose of supplying consumers with electric power and light. In February, 1924, the respective parties executed a written contract by the terms of which the appellant agreed to purchase. from respondent the entire output of a 25,000 kilowatt hydroelectric generating plant for a term of twenty years at 4y2 mills per kilowatt. The contract provided in part: “Irrigation District expects and intends hereafter to construct, operate and maintain a storage reservoir . . . and a hydroelectric generating plant of-about 25,000 kilowatts capacity at or near Exchequer on the Merced River, . . . The parties hereto agree as follows: 1. Irrigation District undertakes and agrees [to] . . . sell to Power Company the entire electric output thereof, . . . and Power Company upon its part agrees ... to receive, accept and pay for such electric output. 2. (a) All electric energy to be delivered and received pursuant to this agreement shall…