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Show kilowatts; the cost of making it available at the plant busses is $385,566,000, or $438 per kilowatt. The corresponding equivalent primary power of the actual 16-dam system is 856,000 kilowatts, so that the justifiable expenditure for the alternative single-purpose system is $374,928,000. The application of the alternative justifiable ex- penditure theory thus results in the following sum- mary of remaining alternative costs: Purpose Estimated costs, alternative system Direct costs, actual system Remaining alternative costs Percent of total Navigation... Flood control. Power........ $225,532,000 227,704,000 374,928,000 $41,278,423 47,262,000 128,600,478 $184,253,577 180,442,000 246,327,522 30.16 29.53 40.31 Total_________ 828,164,000 217,140,901 611,023,099 100.00 Thus navigation and flood control are about 30 percent each and power is 40 percent of the total remaining alternative costs. Allocation of the joint costs for the 16 multiple-purpose projects on June 30,1945, was as follows: Project Single-purpose investment Allocation of Joint investment Single-purpose projects and other electric plants Total Percent Amount system Navigation___ Flood control-Power______ $41,278,423 47,262,000 128,600,478 30 30 40 $103,689,945 103,689,945 138,253,260 $172,002,929 $144,968,368 150,951,945 438,856,667 Total... 217,140,901 100 345,633,150 172,002,929 734,776,980 The total investment in all types of TVA activi- ties under the Act as of June 30, 1945, was $790,- 091,950, classified in the following types of projects: Multiple-purpose reservoir projects____ $562, 774, 051 Single-purpose hydroelectric plants_____ 43,828, 484 Fuel-electric power plants___________ 27,816,789 Other electric plants_______________ 100,357,656 Chemical plants___________________ 10,620,451 General plant_____________________ 13,004,172 Construction in progress_____________ 29,637,650 Unamortized acquisition adjustment____ 1, 916, 299 Preliminary investigations____________ 136, 398 TotaJ______________________ 790,091, 950 Navigation Costs and Benefits In 1926 «he Corps of Engineers estimated that transportation savings by 1940 through navigation would be 22.8 million dollars on 17 million tons. An early study by TVA indicated 8 million tons of traffic by 1946, with savings of $1.25 a ton or a total of 10 million dollars. At the time of sub- mitting the 1945 alternative justifiable expenditure recommendations, TVA reappraised these forecasts and found them too optimistic. It conducted a survey of river traffic among 3,700 prospective ship- pers in 191 cities and towns, and determined 6,525,- 000 tons of potential waterway traffic. Analysis in detail reduced this to an estimate of 2,648,000 tons, with transportation savings of $3,452,000. Although the waterway was not entirely com- pleted until late 1948, the actual traffic was 2,555,- 288 tons in 1946, and 2,894,181 tons in 1947. Though tonnage increased only 13.3 percent, ton- miles increased 78.3 percent. The Corps of Engineers made an independent investigation in 1948 of Tennessee River traffic growth possibilities and navigation benefits. They presented the following data and estimates: Matured traffic____________________5,500,000 tons. Savings per ton------------------------------$1.47. Savings in annual transportation costs-. $8,104,000. Average haul on Tennessee___________228 miles. Ton-miles on Tennessee_____________ 1,251,625,000. Benefits on the Ohio and Mississippi attributable to TVA reservoir operation were estimated at $50,000 and $210,000, respectively. Accordingly, average annual navigation benefits may be esti- mated as follows: Corps of Engineers Federal Power Commission summary Savings on commercial freight.. Fishing and recreation boating.. Decreased dredging, Ohio...... Decreased dredging, Mississippi. $8,104, 000 1,000, 000 50, 000 210,000 » $9,145,000 » 1, 000,000 * 50,000 » 210, 000 Total.................. 9, 364,000 10,405,000 1 As estimated by TVA. 2 TVA made no estimate for fishing and recreation boat- ing, but the Federal Power Commission adjusted its esti- mates to include the Corps of Engineers estimate for this purpose. * Corps of Engineers estimate used. Estimates of costs on the alternative navigation system by TVA and the Corps of Engineers are in- dicated in the following tabulation: 742 |