OCR Text |
Show BOULDER CANYON PROJECT 27 a sound competitive condition between these various agencies which will insure the consuming public protection in the form of reasonable rates and good service. One other point is here entitled to mention. Earry in the hearings it was suggested that the bringing in, at one time, of this great block <>f power would flood the market and work hardships on private investments. This suggestion was due to lack of understanding of the plans. Power may be made available when the dam reaches the necessary height for power-plant operation, and may be gradually increased to the total amount as the dam reaches its maximum height, or approximately during a period of three years. Thus the power will enter the market gradually. It has been urged by some that a development at Boulder Canyon does not fit in with a comprehensive plan of development of the rivei*. The committee is satisfied that this is not so. Other development may proceed without interference by reason of this project. Secretary Hoover in his testimony regarding the location of the dam declared: I do not believe that construction at that point is going to interfere with the systematic development of the Colorado River for storage and power above and below. Part VI. Financial Soundness of Project The Secretary of the Interior, in his report of January 12, 1926, gives his estimate of the financial working of the project as follows: Capital investment Estimated cost for- 26,000,000 acre-foot reservoir______________....._________$41, 500, 000 - 1,000,000-horsepower development________________________ 31, 500,000 The all-American canal_____________T____________________ 31, 000, 000 Interest during construction on above, 5 years, at 4 per cent_ 21, 000, 000 Total........___________________..........____......125, 000, 000 Annual operation Estimated gross revenues from- Sale 3,600,000,000 kilowatt-hours, power at three-tenths cent. $10, 800, 000 Storage and delivery of water for irrigation and domestic purposes____________________________________________ 1, 500, 000 Total_____________________________________________ 12, 300, 000 Estimated fixed annual charges for- Operation and maintenance, storage, and power____________ 700, 000 Operation and maintenance, all-American canal_____________ 500, 000 Interest on $125,000,000, at 4 per cent____________........ 5, 000, 000 Total___________________....._______________________ 6, 200, 000 Estimated annual surplus, $6,100,000, or thought to be sufficient to repay the entire cost in 25 years. It will be observed that the allowances he makes for operation and maintenance are extremely liberal. The testimony points to costs being more favorable than thus indicated. |
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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. |