AZ vs. CA:04 California Exhibits, Vol. IV; Nos. 151-192

page 53

THE ALL-AMERICAN CANAL. 53 between the Secretary of the Interior and the board of directors of the Imperial Irrigation District, and under which the Yuma project will pay for a half interest in 4,000 second-feet of canal capacity to-Araz, a similar basis should be adopted for ascertaining what part of the canal construction cost should be charged to any amount of water used for power at any point on the canal, where a fall equal to or in excess of that originally proposed by the United States Reclamation Service at Araz (23 feet) can be made available. There would thus be a distribution of the cost of the canal to irrigation and to power down to Araz. All canal construction costs below Araz would be charged to irrigation. Of the capacity of 9,000 second-feet for which the all-American canal has been planned, 6,000 second-feet will be used for power at mesa power station No. 1, dropping there 24 feet. Following the plan laid down in the agreement, power development, when the power plant is established at mesa power station No. 1 or at mesa power station No. 2 (with a fall of 47 feet), or at both of these, should be charged with that part of the canal cost down to Araz, determined by the ratio that one-half of 6,000 second-feet, or 3,000 second-feet, bears to the total capacity to be provided for Imperial Valley between the Laguna Dam and Araz, or 9,000 second-feet. This would make one-third part of cost of construction down to Araz chargeable to power. This relation is of importance only in determining the amount of the construction cost which is to be charged to power and in computing the item of interest on the investment when determining the operating expenses of the power plants. Yuma project is expected, as above stated, to require, ultimately, for power purposes at Araz 4,000 second-feet of water. It is also expected to install, if operating alone, a power plant at which the installation will be for 8,500 water horsepower. On the assumption that the distribution of canal construction costs down to Araz should be in the equal parts, for like canal capacities, as above explained to power and to irrigation, the charge to Yuma project for an interest in the canal should be as follows: If the canal below siphon drop is constructed at a capacity of 6,000 second-feet, Yuma project should contribute one third of its cost down to Araz and would obtain the right to participate in any power output in the ratio of 8,500 water horsepower to the total water horsepower for the utilization of which an installation is made. The participation would, however, obligate the Yuma project to contribute to the cost of the power plant installation in an amount determined by this ratio and the same ratio would also determine the share of the Yuma project in any profits that result from the sale of power.