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Show 88 UPDATING THE HOOVER DAM DOCUMENTS atives, which drafted the foregoing agreements, and the Coordinating Committee, composed of the heads of the respective groups or their representatives, which establishes policy for the Project. E. 7 Department of Energy Creation of the new United States Department of Energy on October 1, 1977, which absorbed a portion of Reclamation's power and energy functions, led to a division of authority in administering Interior's power contracts. The Navajo Project basic agreements remained with Interior, although Reclamation's contracts for the interim sale of the United States entitlement in the Navajo Project (also termed "layoff contracts") and the Navajo power coordination contract became the responsibility of the Department of Energy, Western Area Power Administration. E.8 Navajo Project Precipitators Work is continuing on improving the performance of the precipitators. The State of Arizona is requiring additional air quality monitoring and reports when the State standards are exceeded. SRP is continuing to work with the precipitator manufacturer and consultants to bring the precipitator and performance and availability up to acceptable standards. Still unresolved is whether the Environmental Protection Agency (EPA) and the State of Arizona will require installation of additional equipment for the control of SO2. Monitoring performed jointly by EPA and SRP indicated that both Federal and State standards have been met with the use of the existing installed equipment. Neither EPA nor the State of Arizona has officially advised SRP that additional equipment will not be required. £.9 Review of Negotiations and Circumstances Leading Up To The Execution of the Contracts for Interim Sale of United States Entitlement of Navajo Project The Colorado River Basin Project Act, Public Law 90-537, dated September 30, 1968, authorized the construction, operation, and maintenance of the Central Arizona Project. With regard to a power supply for operation of the project, Section 303(b) provided as follows: "If included as a part of the recommended plan, the Secretary may enter into agreements with non-Federal interests proposing to construct thermal generating powerplants whereby the United States shall acquire the right to such portions of their capacity, including delivery of power and energy over appurtenant transmission facilities to mutually agreed upon delivery points, as he determines is required in connection with the operation of the Central Arizona Project. When not required for the Central Arizona Project, the power and energy acquired by such agreements may be disposed of intermittently by the Secretary for other purposes at such prices as he may determine, including its marketing in conjunction with the sale of power and energy from Federal powerplants in the Colorado river system so as to produce the greatest practicable amount of power and energy that can be sold at firm power and energy rates." Negotiations looking toward contractual arrangements for the purchase of entitlement to electric power and transmission capacity in non-Federal facilities were initiated in June 1968 with Secretary of the Interior Udall. Public and private utilities in the Southwest were invited to participate, and a steering committee was formed consisting of a representative from each interested utility and the Bureau of Reclamation. The initial non-Federal parties were: San Diego Gas & Electric Company; Southern California Edison Company (SCE); Department of Water and Power of the City of Los Angeles (LADWP); Nevada Power Company; Salt River Project Agricultural Improvement and Power District (SRP); Arizona Public Service Company (APS); Tucson Gas and Electric Company (TG&E); El Paso Electric Company; and Public Service Company of New Mexico. While others attended the June meeting, the above group constituted the core of those interested. The steering committee, through several task forces, studied the problems involved in the construction and operation of the power generation and transmission facilities, including design, costs, legal and tax considerations, coal leases and other property agreements, socioeconomic aspects, loads and resources. |
