OCR Text |
Show APPENDIX VI VI-45 40 COLORADO RIVER STORAGE PROJECT It is apparent that the incremental cost of generating substitute energy applies to allottees having generating facilities of their own capable of producing the substitute energy. However, this district, having no generating facilities, will be compelled to purchase (rather than generate) substitute energy. The quantity of energy so purchased, and the time of use of such energy, will be dictated by the district's operating requirements. Some such purchases may be "on peak" with reference to the sources of energy, and hence may be more costly than possible "off peak" purchases. The cost of substitute energy to the district presumably will be greater than the contract cost of Hoover energy. It is the view of this district that in interpreting and applying the quoted language of the criteria, "the incremental cost" to the district of substitute energy will be determined with reference to the actual cost of such energy to the district at the time and in the quantity required for district operations. Your confirmation (or comments) on this construction, at an early date, will be appreciated. Any difficulty relating to determination of incremental costs would be eliminated if substitute energy can be delivered in accordance with the district's operating requirements. The district will much prefer such substitute energy instead of monetary compensation, "iour present assurance that such substitute energy can and will be supplied would be most helpful. Ver}' truly yours, R. A. Skinner. General Manager and Chief Engineer. Department of Water and Power of the City of Los Angeles. Lo* Angeles, Calif., May 2, 1962. Hon. Stewart L. Udall, Secretary of the Interior, Department of the Interior, Washington, D.C. Attention of Mr. Floyd E. Dominy, Commissioner of Reclamation. Dear Sir: We have your letter of April 4, 1962, transmitting a proposed "Additional Regulation No. 1 to the General Regulations for Generation and Sale of- Power in Accordance With the Boulder Cunvon Project Adjustment Act" and requesting comments thereon. We observe that the language with respect to reimbursement to1'* * * the Upper Colorado River Basin fund for moneys expended from such fund on account of allowances for Hoover diminution * * *" does not make any provision for interest on the moneys so expended from said fund. While we should prefer that the language explicitly state that the contemplated reimbursement is to be "without interest," we assume that it is your intent to achieve the same result through the omission of any provision for interest and that the language does in fact achieve this result. What we have said above with respect to the language of the proposed "Additional Regulation No. 1" is, of course, equally applicable to the language contained in section 5 of "General Principles To Govern, and Operating Criteria for. Glen Canyon Reservoir (Lake Powell) and Lake Mead During the Lake Powell Filling Period" |