A. When available power supplies are insufficient to meet pending power applications, preferences shall be given to:

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1. Districts.

2. Any incorporated city or town, or any cooperative serving its own members only, to the extent of the difference between its existing contracts for purchase of power generated by the waters of the main stream of the Colorado river from whomever purchased and seventeen million five hundred thousand kilowatt hours per annum.

3. Applicants other than districts for power supplies to be used primarily for irrigation or drainage purposes or both.

4. Any qualified applicants including any named in this subsection.

B. No reduction in power supplies under power contracts existing on March 31, 1947 shall be made except with the consent of the purchaser because of any power scarcity arising after execution of the contracts, and such contracts shall remain in force and effect during the term thereof.