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Show CHAPTER III 61 Davis Dam provides regulation of the Colorado River below Hoover Dam for domestic use, irrigation use, and for delivery of water at the United States-Mexico International Boundary as required in Article 12(b) of the Mexican Water Treaty of November 8, 1945. The Davis Dam project also provides for production and transmission of electric energy. The major project works include Davis Dam and Powerplant, Parker Dam and Powerplant, and a high voltage transmission system with substations which provide for delivery of energy to the customers and sec-tionalizing of the long transmission lines. Five generating units rated 45,000 kW each are installed at Davis Powerplant and four units of 30,000 kW each are installed at Parker. The transmission system includes 35 substations and approximately 1,545 miles of high voltage transmission lines. The total estimated construction cost of the Parker-Davis Project is $152,859,558. The portion of the cost allocated to power excluding contributions and nonreimbursable costs will be repaid from power revenues with interest at 3 percent. In addition, costs allocated to irrigation pumping and to servicing the Mexican Treaty will be repaid from power revenues without interest. All project works are operated and maintained by Government forces. The Parker-Davis Project provides electrical service in various categories as follows: (1) Wholesale firm power service has been provided under the terms and conditions of contracts with both preference and nonpreference contractors under the existing Schedule LC-F2 which provides an average rate of approximately 6.65 mills/kWh at 60 percent monthly load factor. (2) The Parker-Davis Project has special rates for Federal irrigation pumping service. Power and energy are supplied at rates based principally on operation and maintenance costs under the terms and conditions of existing contracts with various irrigation districts in the Yuma, Arizona, area to meet Gila Project and Yuma Auxiliary Project irrigation pumping requirements. The rate charged under these contracts is 3.5 mills/kWh for Federal irrigation and drainage pumping, and 6.65 mills/kWh is charged for other project purposes. (3) Power and energy are supplied from the Parker-Davis Project to meet requirements of the Colorado River Front Work and Levee System at the rate of 6.65 mills/kWh. (4) The Parker-Davis Project provides domestic retail service at such places as the Parker-Davis Project camps at Parker and Davis Dams under Schedule LC-L3. This schedule provides energy at a rate of 8 mills/kWh. Under recent regulations Reclamation is in the process of developing a camp rate which is consistent with other utility rates in the local area. (5) The Parker-Davis Project provides transmission service over the facilities of the Parker-Davis Project under several long-term contracts with preference contractors, and also has a number of contracts which provide for use of specific facilities. The rates for transmission service and use of facilities vary between contracts depending on the facilities used. (6) Under an Agreement with the Colorado River Storage Project, the Parker-Davis Project provided and maintains specific additions to the Parker-Davis Project system which are required for the delivery of Colorado River Storage Project power and energy to Southern Division contractors. Payment is based on annual costs and charges are subject to annual adjustment for operation and maintenance costs, therefore, increased costs are automatically covered. C.2 Contracts for the Sale of Power Firm power and energy were marketed from the Parker-Davis Project to both preference and non-preference customers in Arizona, southern California and southern Nevada, under terms and conditions of electric service contracts which terminated March 31, 1976, and December 31, 1977, respectively. The following exhibits summarize as of April 1, 1973, and July 1, 1975, the amounts under contract as firm and re-capturable power with 14 preference contractors and two nonpreference contractors which are served by the Parker-Davis Project. The total amount of power under contract during the summer season is 215,025 kW, including 19,500 kW which are subject to recapture. The total amount under contract for the winter season is 161,275 kW, including 14,625 kW of recapturable power. The purposes of recapture, as established in the contracts, are for use in construction, operation, and/or maintenance of projects under the administrative control of the Bureau of Reclamation. |
