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Show DIXIE PROJECT, UTAH 89 available to assist in the relocation of this road up to present standards. If they want to improve it, that is a different matter. Mr. HALEY. YOU can understand my concern, can you not, here, Mr. Secretary ? These people are saying, " We reaffirm," and " We reaffirm if we can get Federal funds." After all, this is one of the things that goes into the making of a feasible project. Now, if the State of Utah is going to build a road, and that makes a feasible project that is perfectly all right, but I think that you should have some firm commitment from the State highway department and not let " we" depend on Federal funds to make a project where feasibility is doubtful, using the general taxpayers' funds or other funds to relocate a road that I presume is already a good road. Mr. Holum, how does this 7.15 mills per kilowatt- hour compare wTith the cost of electrical energy in that part of the country, do you know? Mr. HOLUM. I am told that the power that the city_ of St. George is generating for itself with the present equipment it has costs 13 mills, so it would be a substantial reduction over the cost of the present power supply available to this particular municipal utility. On the other hand, it is only appropriate to note that this is comparatively expensive power at 7.15 mills per kilowatt- hour ; it is higher than we ordinarily recover from reclamation power and it is higher than the cost of modern and efficient generation. Mr. HALEY. Let me ask you this. Are there any other sources of power that this community could tap, rather than the generation of their own power or the building of this powerplant by the Federal Government ? Mr. HOLTJM. The power from the Colorado River storage project, the Glen Canyon Dam particularly, is becoming available in this part of the country. Mr. HALEY. SO the power needs actually might be well satisfied without the construction of this project, is that right ? Mr. HOLUM. I think, again, Congressman, that I should let the local people speak to this question but I think what we have here is another indication of the enthusiastic local interest in support of this project, a willingness on the part of all of the entities in the area to give it the financial support required in order to make it possible. Mr. HALEY. They may be enthusiastic now, but when they begin to pay this high rate for municipal water, they might not be so enthusiastic in the future. Is that a possibility? They are going to have the highest power rate in that part of the country, isn't that right ? Mr. HOLUM. Perhaps not the highest power rate in that area of the country, but their rate for wholesale power will be high and I think it is appropriate that the members of the committee and responsible administrators in the Department of the Interior make certain these revenues are available before this project goes forward. That is correct. : ;; •>/•- Mr. HALEY. That is all, Mr. Chairman. Mr. ROGERS. Mr. Skubitz. Mr. SKUBITZ. Mr. Secretary, I am happy to hear you say that in your opinion this project is now economically sound and feasible. |