OCR Text |
Show and energy available to the Hoover allottees which result from the lowering of Lake Mead below elevation 1123 by reason of storage of water in Lake Powell. The United States will also relieve the allottees of costs of extraordinary maintenance of the Hoover turbines and generators resulting from such lowering. Costs incurred by reason of this paragraph will be charged to the Upper Colorado River Basin Fund and will not be subject to reimbursement from the separate fund identified in Section 5 of the Act of December 21, 1928, or otherwise charged against the Boulder Canyon Project." The energy and capacity losses entailed by operations below rated power head at Hoover Dam are referred to as "impairment losses," in contrast to the "energy deficiencies" occurring during operation above rated head. The Upper Colorado River Commission has never approved the Secretary's "General Principles" or his procedure for computing energy deficiencies, capacity impairment, or energy impairment. Furthermore, the Commission has protested the use of the Upper Colorado1 River Basin Fund, and the use of energy and capacity from Upper Basin projects for the purpose of compensating the so-called losses of energy and capacity incident to filling the Upper Basin reservoirs, unless the Upper Colorado River Basin Fund is to be reimbursed to the full extent that it will be depleted by such procedures. The only indication of reimbursement to date is based on subsequent approval by Congress, and is limited to actual dollar expenditures for "deficiency energy purchases." Of equal significance are the dollar expenditures for impairment energy, impairment capacity, and likewise the value of the energy and capacity supplied directly by the Upper Basin powerplants. Of even greater significance is the interest cost reflected as a loss in the Upper Colorado River Basin Fund incident to the foregoing charges and loss of revenue which otherwise would have applied to reduce unpaid interest bearing balances. 71 |