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Show 74 DIXIE PROJECT, UTAH Irrigation users will pay back $ 30,182,000; power users, $ 6,573,000 and municipal and industrial water users will pay $ 2,474,000. I think it's important to consider that after 41 years, power revenues will be available for contribution to the irrigation share and that municipal and industrial water rate payers will be contributing for that purpose after 50 years. I would like to call to your attention a fact that might not be readily apparent in examining the project itself. Its reservoirs, available for water sports, will be just a few miles off from Interstate 15. That highway, in turn, connects to Interstate 70, a little way to the north. The result is that this freeway system will be carrying a large part of the traffic between the Los Angeles and Chicago metropolitan regions. There will be, in addition, the traffic generated by the Lake Powell Recreation Area, Bryce Canyon and Zion National Parks and, hopefully, Canyonlands National Park, now before another subcommittee of the Interior Committee. The resulting demands for power, for water and for outdoor recreation will be- cannot help but be- greatly expanded. If anything, the forecast demands and repayment estimates are overly conservative because they tend to reflect internal conditions and not such external factors as the Interstate Highway System. This is not a flaw in the planning, but another reason why the economic base of this area should be reinforced by the Dixie project. Thank you for your consideration. Mr. ROGERS. Thank you, Mr. Lloyd. Mr. Aspinall, do you have any questions ? Mr. ASPINALL. Just to say to our colleague that we have never had a project where they have been overly conservative relative to repayment. What makes you think this project is figured on a basis that is overly conservative? Mr. LLOYD. I have pointed out the new interstate highways, Mr. Chairman, and the added demands for industrial power and culinary power for the area. It would seem to me in my analysis of the project, with the great potential for the development of that great region down there that the demands for power and water certainly will meet the conservative estimates made here. Mr. ASPINALL. Not power from this project? Mr. LLOYD. Well, the public demands down there. Mr. ASPINALL. Yes, but this project has a very small powerplant and the repayment ability figured upon the use of all of this power at the time it is available and at a stated rate of charge, there cannot be anything more than that ? Mr. LLOYD. I understand the power payback, I think, is something in the neighborhood of $ 6 million out of $ 42 million. What I mean to emphasize is the fact that this is an area in which the user potential is certainly adequate and will be growing. I would like to emphasize the fact that the power repayment of approximately $ 6 million is certainly a safe estimate. Mr. ASPINALL. I can see where there might be an increase in funds derived from the industrial water users providing your optimistic outlook becomes a reality, but as far as the payments to be obtained |
