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Show Vl-54 UPDATING THE HOOVER DAM DOCUMENTS COLORADO KIVEH STORAGE PROJECT 49 showing that the Secretary will have the authority and appropriations out of which to make such payments. Commissioner Dominy states "• * * it is our intent to make minimum use of dollars but maximum use of energy from Federal projects for any required replacements." The Bureau should define "Federal projects" to assure those concerned that Davis and Parker are not included in this statement. He goes on to say: "It is not intended to use firm energy from the storage project powerplants if such energy could be sold at firm power rates." "Firm" is, as you know, a matter of definition. At a meeting in Los Angeles on April 20, 1961, Bureau representatives were asked to give the definition of "firm" applicable here. The answer was: "Any power and energy which can be fitted under the customer's load curve." Pressed, those representatives agreed that power and energy are generated and sold only if it can be fitted under the composite load curve of the customers. They then went on to state that fuel replacement power and energy would be firm in that sense, and specifically referred to the interest of a Colorado-Nebraska-Wyoming group in just such energy. Under such reasoning, any power and energy which could be marketed at any price would be sold rather than assigned to offsetting Hoover impairment. It may be that the newly added term "firm power rates" may provide the saving grace here. If the Secretary were to substitute for "firm power rates" the expression "6.5 mills at delivery points on the trunk transmission system" the intent would be made clear. This principle 5 would, in ultimate effect, apparently relieve present Hoover allottees of adverse effects from the "filling" of storage project reservoirs, with the cost of such relief to be borne by succeeding generations of Hoover contractors, and at the expense of extending the Hoover payout period. Arizona fully expects to be one of the future contractors, so the relief held out is for an interim period at best. And there is no assurance that the Secretary is in fact authorized to offer even this interim relief by prolongation of the Hoover payout period. Principle 6 No comment. Principle 7 The language of this principle provides that Hoover kilowatt capacity will not be impaired while Glen Canyon is developing dead storage. This Arizona believes most important, for while kilowatt-hours are apparently available in lieu of Hoover generation, lieu kilowatt capacity will in all probability not be available from other Arizona generating sources. Principle 8 Principle 8 would apparently permit Lake Mead to fall below Hoover rated head level once Glen Canyon has developed dead storage. Two things happen if Lake Mead falls below that level. Kilowatt capacity of the powerplant becomes impaired, and maintenance and replacement costs, particularly of the hydraulic turbines, rise sharply. Glen Canyon, Flaming Gorge, and Curecanti could provide the lieu kilowatts not available for purchase in Arizona, but Commissioner |
