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Show 26 BOULDER CANYON PROJECT Part V. Power The Federal Government is interested in power on the project as a m^ans by which the great works authorized may be financed without a drain on the National Treasury. In the hearings on the project \a mass of testimony was produced bearing upon the market for power. Showings were made as to the future requirements and markets for such power in Los Angeles, Pasadena, Riverside, and other cities of southern California, of the States of Nevada and Arizona, of transcontinental railroads, and the private distributing companies. It was also developed that southern California cities, in connection with a greatly needed domestic water supply from the Colorado River, would require a large block of the power for pumping purposes. Although the testimony clearly indicated an ample and waiting market, yet, in view of the whole situation, the Secretary of the Interior in his report on the bill of January 12, 1926, suggested the following very simple and practicable plan of determining the question of adequacy of such market, and thus removing this problem from the field of speculation: In order to give assurance before any large expenditure is incurred that the anticipated revenues from this development will be obtained the bill should contain a provision that before any bonds are issued and sold and before awarding any contracts for construction, the Secretary of the Interior shall secure the execution of contracts with irrigation districts, municipalities, and corporations, on terms to be fixed, for the delivery of all water to be supplied for irrigation, domestic, and municipal uses, and shall obtain definite commitment for the purchase of power from responsible bidders in an amount to insure a sufficient return from this development to repay the money to be expended with interest within a period of 50 years. This suggestion was cheerfully accepted by the proponents of the legislation, met with the approval of the committee, and is expressed in the bill, section 4 (b) of which provides: Before any money is appropriated or any construction work done or contracted for, the Secretary of the Interior shall make provision for revenues, by contract, in accordance with the provisions of this act adequate, in his judgment, to insure payment of all expenses of operation and maintenance of said works incurred by the United States and the repayment, within 50 years from the date of the completion of the project, of all amounts advanced to the fund under subdivision (b) of section 2, together with interest thereon made reimbursable under this act. It may be confidently expected that this somewhat unusual and rigorous requirement will promptly be met. The plan of the Boulder Canyon project, as expressed in the bill, contemplates allocation of the power or power rights at Boulder Canyon amongst various agencies, including States, political subdivisions, municipalities, domestic water-supply districts, and private companies. The evidence clearly indicates that the total power developed at Boulder Canyon will about supply the available waiting market when such power is ready for distribution. There should not be any serious overlapping of applications, and the proper allocation to alt agencies in the market for the power should be easily possible without doing injustice to any. With such a distribution of power or power rights at the dam, all danger of monopolization will be avoided, and there will be created |
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Original book: [State of Arizona, complainant v. State of California, Palo Verde Irrigation District, Coachella Valley County Water District, Metropolitan Water District of Southern California, City of Los Angeles, California, City of San Diego, California, and County of San Diego, California, defendants, United States of America, State of Nevada, State of New Mexico, State of Utah, interveners] : California exhibits. |