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Show Chapter 15 Hydroelectric Power DURING THE PAST 20 YEARS the Federal Government has embarked upon an accelerated program of development of the principal rivers of the Nation. This has involved the construc- tion of a substantial number of large dams. Other dams are now under construction, and a still larger number are authorized for future con- struction or are contemplated for subsequent authorization. As a result of congressional action under a number of laws, hydroelectric power installations at these dams are producing large quantities of electric energy. Ultimately, far greater quanti- ties of such energy will result from the completion of contemplated multiple-purpose developments. Policy Questions Congress has determined that this power should be marketed at the lowest possible cost to the best advantage of the greatest number of people con- sistent with sound business principles. The carrying out of this directive, coupled with the increasing interest of the Federal Government in rivers in which its multiple-purpose programs are going forward, has raised a number of issues re- quiring clear-cut policy decisions. The magnitude of Federal operations in the Pacific Northwest has resulted in the Federal sys- tem's becoming the principal supplier of electric energy in that region. The logical question thus raised is whether the Federal Government has acquired a utility responsibility there. If so, should it frankly accept the fact and establish a regular basis for assuring the additional generat- ing capacity required by the regional develop- ment? A closely associated question is whether Congress should establish the basin account prin- ciple so as to facilitate the setting of uniform rates throughout the system. In other areas in which the Federal Govern- ment is not the principal supplier of power, the policy issue is posed in a different form. In the first place, the vital question is: How can the Government best market the power generated at its dams in such a way as to effect the congres- sional purpose of assuring wide distribution at low rates and still assure the most economical in- tegration of all power supply facilities in the re- gion? The power systems urge that the power be sold to them at the generating station, or at least that the Federal preference to public bodies and cooperatives be eliminated. But the Rural Elec- trification Administration cooperatives and others point to the fact that the lowest electric rates pre- vail where the present policy of Congress is in effect. A similar question is raised by numerous re- quests by non-Federal interests for licenses to develop hydroelectric power at sites which are included in Federal river basin plans. The exer- cise of the Federal authority appears to be divided here. Decisions by the Federal Power Commis- sion to issue licenses may seriously interfere with the program of the Federal agency charged with marketing the power in accordance with the con- gressional mandate. In fact, the applicant for a 219 |