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Show TVA Corps of Engineers Federal Power Commission "highest estimate" Annual costs: Interest........ Depreciation.... Operation and maintenance. . Malaria control. i $4, 351,000 824, 000 1,260, 000 300, 000 a $5, 221, 000 676, 000 1,129,000 300, 000 « $5,221, 000 676, 000 1, 260, 000 300, 000 Total........ Additional facilities at Muscle Shoals. 6,735, 000 7, 326,000 771, 000 7, 457,000 771, 000 Total....... 8, 097,000 8,228,000 1 At 2 percent. 2 At 2.4 percent. The Federal Power Commission's highest esti- mate of average annual costs is $8,228,000, and compared with the lowest estimate of benefits, $9,104,000, indicates economic justification of the alternative navigation system. Flood Control Costs and Benefits Both agencies also made studies of flood control benefits. Using the most recent studies of benefits at Chattanooga, these estimates are shown in the tabulation at the top of the next column. The estimate of annual costs of the alternative flood control system, with certain estimates sup- plied by TVA and others by the Corps of Engineers, is stated by the Federal Power Commission as follows: Interest_____________________________ 1 $5,465, 000 Depreciation-------------,________________ 515, 000 Operation and maintenance____________ 385, 000 Malaria control______________________ 100,000 Total________________._________ 6,465,000 Annual costs on Chattanooga levee_______ 830, 000 Total_________________________ 7, 295, 000 1 At 2.4 percent. TVA Corps of Engineers In the Tennessee Valley: Chattanooga.......... Dayton................ Clinton................ Loudoun............... Lenoir City............. Knoxville.............. Smaller communities..... Agricultural lands....... Other communities and agricultural lands...... In the Mississippi Valley..... Railroads, highways, crops, and property.... Reduced levee maintenance ................ Increased land values.... In the Ohio Valley......... $4, 682,000 50,000 31,000 22,000 25, 000 50,000 10,000 405, 000 1,250, 000 120,000 4, 500, 000 i $4, 978, 000 594, 000 3, 600, 000 240,000 Total................ 11,145,000 9, 412, 000 1 This presupposes also the recommended levee-protec- tive system at Chattanooga. The lowest estimate of annual flood control bene- fits on a 1948 basis, $8,963,000, more than exceeds the estimate of annual costs on the alternative system. Electric Power Costs and Benefits The amounts of prime power and their value also indicate that the expenditure of $374,928,000 for a single-purpose power project would be justi- fied. The Federal Power Commission confirmed the view of TVA as to this, commenting that no one has claimed that the costs allocated to power by TVA should be reduced. In addition the Chair- man of the Commission appended a documented comment that at present rates power revenues could return the entire Tennessee Valley Authority in- vestment with interest within a period of 50 years.4 * Smith, Nelson Lee, Comment on Report of Review of TVA Cost Allocation, dated March 23, 1949, S. Doc. 56, 76th Cong., 1st sess. (1939), pt. I, pp. 176-177. 743 |