Southern California Edison Co. v. Commissioner

1. In connection with the construction of Boulder Dam petitioner in 1930 contracted to purchase certain minimum specified amounts of electric power to be generated for a period of about 50 years. As the facts developed it was not required to begin taking such power pursuant to its commitment prior to June 1, 1940. The dam was completed and some generating facilities actually began to produce electric energy in 1936. In late 1936 and early 1937, three cities, Los Angeles, Burbank, and Glendale, which had previously purchased their power at wholesale from petitioner for resale through their…