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Show sells directly to municipalties, industrial concerns and to Federal agencies. TVA transmits power by its own trans- mission lines to substations of the industries and public bodies. The latter distributes the power to smaller consumers. (e) In the Columbia River Basin in Oregon, Washing- ton, and Idaho, the Bonneville Power Administration markets the power from Bonneville Dam and Grand Coulee Dam. The Administrator is responsible to the Secretary of the Interior. Preference is given in the sale of power to public bodies and cooperatives, although large amounts are sold directly to industries and power companies. Gov- ernment transmission lines, built by Bonneville Power Ad- ministration, feeds power into the Northwest power pool, which connects most of the main public and private power plants of the Northwest. The Bonneville Act provides for initial but not continuing approval of the power rates by the Federal Power Commission. (/) The L944 Flood Control Act provides that all water power generated at multiple-purpose dams, con- structed by tfce Corps of Engineers, shall be marketed by the Department of the Interior at rates initially approved by the Federal Power Commission. Preference is given to public bodies and cooperatives. Most of the power has been sold at the dam and transmitted over agency and private powej company transmission lines. (g) The power from the Fort Peck Dam, constructed by the Corps of Engineers, is sold by the Bureau of Recla- mation at rates approved initially by the Federal Power Commission. Transmission lines are built and operated by the Bureau. (A) Power- generated at irrigation dams is marketed by the Burea-u of Reclamation. Power is transmitted to market by transmission lines constructed by that agency, and rates are set by the Secretary of the Interior. (0 The rates charged for retail sales and for interstate sales of power generated at licensed privately owned hy- droelectric plants are subject to regulation by State com- missions and in the absence of State commissions such rates are subject to complete regulation by the Federal Power Commission. (j) The interstate wholesale rates charged by privately owned utilities for energy are subject to regulation by the Federal Power Commission. Uniform Interest Rates The rate od interest used for determining costs, payment obligations ajid benefits of Federal water resource de- velopments slould be the same for all types of develop- ments and shiould be established at a uniform rate for all agencies and generally at the prevailing cost of long-term money to th_e Government. Existing laws and policies regarding interest rate vary, among agencies, uses, and areas. For example, in estimating annual costs on flood control and navigation projects to compare with estimated average annual benefits, an interest rate of 3 percent is used by the Corps of Engineers on the Federal portion of the costs and 3J/s> percent on the portion contributed by local interests. The Department of Agriculture uses 2 percent for the Federal costs, and 4 percent for local portions of the costs. The Department of the Interior uses 2J4 percent. The Tennessee Valley Authority uses 2 percent. In establishing power rates, the Department of the In- terior uses an interest rate of 2^2 percent on projects constructed by the Corps of Engineers; but interest at 3 percent is used in establishing rates for power from projects constructed under Reclamation law. A rate of 2 percent has been applied currently by the Secretary of the Interior in the case of costs to be returned for mu- nicipal water supplies provided from reclamation reser- voirs. Conflicts will be avoided, costs and benefits truly evaluated and payment obligations fairly established by adoption of a uniform rate of interest. Bases for Economic Studies A uniform policy for all agencies to use in computing economic costs and benefits should be determined. The period of time used in pay out and other economic studies has an important bearing in determining the estimated annual cost to compare with the estimated average annual benefits. Some agencies have assumed 100 years or the useful life of the project, whichever is shorter, as the economic life, while others use only 50 years. Also, some agencies use current price levels as the measure of ex- pected future levels, while other agencies use other bases as the measure of expected future price levels. Priority in Land Development In the development of irrigation and drainage lands, priority should be given, when economically justified, to the further improvement of those units which are now in operation. Many small irrigated areas, such as those in Utah, require repaired structures, additional reser- voirs, or new ditches. In an existing local economy, with communities, roads, schools, and other services already provided, limited public funds may give greater additional results than if used elsewhere. Construction of new projects which fit into an existing economy should be given high priority. Throughout the West a great number of such projects are possible and would strengthen the existing economy. Land and Water Relations Both land and water are limited resources. Although water has uses apart from the land, the land has few uses in which water is not an important factor. The following thoughts concerning the land and water relationship were suggested by projects considered and appear desirable, provided the benefits exceed the costs in each case: (a) In authorizing, allocating funds for, in the man- agement of, and in the development of lands, first measures should be those that protect the soil and water values. The Angeles National Forest was created for this purpose only and its administration pointed to that end. (b) Land management problems cannot be solved readily on a basin-wide basis where varied forms of land ownership, management, and public administration exist without coordination. In the Middle Rio Grande Valley there are some 26 types of public land administration agencies and the problem of obtaining coordinated action in conservation measures is critical. Legislation is needed to harmonize conflicting Federal land management practices. 416 |
