Wyoming. Even though power revenue will provide 91 percent of project reayment, water development must at all times be the overriding consideration. 2. Our studies support an all-Federal backbone transmission system because will serve these project needs, plus providing the maximum integration of this ower system with other Federal power systems thereby resulting in full advange of diversity of power loads, water flows, and system control. 3. A Federal backbone grid will also do much to smooth out the problems cident to the filling of Glen Canyon Reservoir by providing the best combinaon of water levels and power production at downstream plants as well as at len Canyon. 4. Construction should be initiated in fiscal 1961 on as much of the Federal stem as possible to avoid an uneconomic crash program later and to insure elivery capacity in place when project generation begins, even though this ill require an appropriation not contained in the budget request. 5. Study should continue on the balance of system lines under the clear policy tipulations of the Congress and the Bureau which require that project needs aust be paramount. The Congress and the people of the area supported this vast and complex eclamation project to bring overdue development to a great area. It should ot now be used for private gain or partisan advantage. We appreciate this opportunity to present our thinking to this committee. We ledge our continued effort to meet problems which may arise with a cooperative pirit. STATEMENT OF HAROLD CASH Mr. Chairman and members of the committee, my name is Harold Cash. I im president of the Wyoming State Rural Electric Association. My directors have authorized me to submit this statement supporting the testimony given by dr. Harvey McPhail of the Kuljian Corp. and the Federal Transmission System is proposed in the report made by the Colorado River Basin Consumers Power, ne. I represent the 15 rural electric systems in the State of Wyoming, serving 6,000 member-consumers along over 16,000 miles of line. Thirteen of these reeive their power from the Federal dams located within the State. Another one Bridger Valley at Mountain View) will use Federal power upon the completion of Flaming Gorge. Except for a few instances this power is transmitted over Federal lines to oad centers within reaching distance of the cooperative. This arrangement, with the reasonable cost of Federal power, has brought about the electrification of 92 percent of the farms and ranches within the State of Wyoming. Future load studies indicate that by 1963 we will be facing a power shortage from our present Federal sources. Naturally, with the development of the upper Colorado River, we are looking forward to postponing this situation by getting some power from that development via a Federal transmission line from Flaming Gorge connecting with the Bureau lines near Sinclair, Wyo. This line would connect the upper Colorado with the Missouri Basin grid, providing for greater diversity. Knowing that the Bureau of Reclamation has received, and at the present time s studying, proposals made by five major power companies to build a part of he upper Colorado transmission system; knowing that there is a part of the ransmission over which there is no controversy (namely: Flaming Gorge to Dak Creek and Glen Canyon to Curecanti); also knowing that in order to utilize he power as it becomes available, transmission lines must be started immediately. Therefore, the rural electric systems in the State of Wyoming urge this committee to recommend, and the Congress of the United States to appropriate, the necessary funds to start immediate construction of these two lines, as a start for a wholly Federal transmission system. STATEMENT OF W. BERRY HUTCHINGS Mr. Chairman and gentlemen of the committee, my name is W. Berry Hutchings. I am president of the Intermountain Consumer Power Association. Representative director for Utah and vice president of Colorado River Basin Consumers Power, Inc., formerly appearing before this committee as Upper Colorado River Preference Users Committee. I am manager of Bountiful City Light & Power for the city of Bountiful, located 10 miles north of Salt Lake City, Utah. Intermountain Consumer Power Association was incorporated under Utah State law the 11th day of May 1957 at Salt Lake City, as a voluntary nonstock nonprofit organization for the purpose of rendering to the consumer owned and operated electric light and power utilities of the municipalities and rul electric cooperatives within the State of Utah, such services as may be bene ficial and desirable and in their best interest. To aid and advise in procurement of electric power and energy for the members and their respective customers To advise and assist in the constant struggle to survive under the shadow of the private power monopoly that exists within our State. Utah has a total of 35 municipally owned and operated light and power systems and 4 Rural Electrification Association systems within its State boundaries. They are as follows: Beaver City, Beaver County Monroe City, Sevier County Mount Pleasant City, Sanpete County RURAL ELECTRIFICATION COOPERATIVES Escalante Power Association, Beryl, Iron County. The combined population served by this group is over 200,000. The prese power requirement exceeds 100,000 kilowatts of demand and more than 4 million kilowatt-hours of electrical power yearly. Of this amount approximate 50 percent is purchased from private utilities at costs well above nationa average. Due to the very rapid rate of growth, both in population and power ex sumption, also the continued increase of power costs, we are therefore seeki additional sources of economic power to meet and fulfill our needs. The Intermountain Consumer Power Association turned their attention a full support toward the full development of the Colorado River storage proje We greatly appreciate the honor and privilege of meeting with this commit to present the views of the association. ECONOMICS The association's first concern is: "The ability of the project to pay back! the U.S. Treasury the funds, plus interest, used to develop same." The investment necessary for generation has been determined. Also a ter tive cost per kilo-watt hour has been established which is required in order ↑ pay back this investment with interest. The problem at hand now is who shon, make the investment and control the carrier necessary for marketing the pow generated. Our views on this are: The preference load requirements of the States Arizona, Colorado, New Mexico, Utah, and Wyoming are large enough to absor the entire production of power on the Colorado River project at all phases development. We accept the fact that a tentative cost of 6 mills has been established for the m power. We, as preference customers, realize that the greatest return of oneys to the Treasurer will be derived from the sale of firm power. We are the market for allocation of this power. It is conclusive that there will be no power available to private power utilities. e are amazed that they should offer to make staggering investments in transission lines for wheeling purposes only. We cannot see where it is possible r them to expend large sums of money for this service without operating at a eat loss, that is, if their cost for wheeling is maintained the same as is prosed in the federally owned system. The loss may mean very little to the ivate utilities, because it would be very elementary for them to hide the deficit their systems financial report and the loss load would be carried by other rateayers in elevated rates. It is our conviction that the earliest financial repayment of this project, and › accumulate the largest amount of surplus funds at the earliest possible date › aid in development of other practicipating projects can only be achieved hrough the development of a federally owned transmission system. OPERATION We are seriously concerned and alarmed in regard to the handicaps and hardhips that will exist through private utility development of transmission lines. It is clear and apparent that a utility developed transmission line will be designed for the sole use of the utilities need in mind. It will establish a definite ollgate which would impose additional costs and impair flexibility needed for in orderly project operation. As has been called to your attention, by others, there is a valuable opportunity n the development of this project to interconnect major market areas and other pasin projects which would permit diversity of power relative to seasonal load lemands, time zone differences, also watershed characteristics and conditions. It would be difficult to put a price tag on the value of taking advantage of hese opportunities. It is obvious, however, that there is a tremendous value hat can be attained only through a system owned and operated by the same controller, the Secretary of the Interior. Such advantages have been foreseen by Congress as is shown in section 7, Public Law 485, 84th Congress, stating as follows: "The hydroelectric powerplants and the transmission lines authorized by this act to be constructed, operated, and maintained by the Secretary shall be operated in conjunction with other Federal powerplants, present and potential, so as to produce the greatest practicable amount of power, and energy that can be sold at firm power and energy rates." SUMMARY The Intermountain Consumer Power Association members urge that the Federal Government construct the entire transmission system that is required for the Colorado River storage project. It is the unanimous opinion of the group that the Federal system will;. (1) Bring a cheaper source of power to the ultimate users. (2) Establish within Utah a competitive condition which does not now exist. (3) Permit diversity of power between basin projects as well as between preference users of different areas. (4) Establish a single owner and controller of generation and transmission' that will give maximum efficiency resulting in the greatest benefits and quickest possible money return to be used on participating projects. (5) Result in a marketing system that can be readily extended and interconnected with future projects. The members of our association have been unimpressed with the private utilities plan because of its inadequacy in fulfilling the intent of Congress when they authorized the Colorado River Project Law 485. We believe that only a Federal transmission system can meet the principles set forth by the Bureau of Reclamation on January 19, 1960, which are as follows: (1) Lines must be of sufficient capacity to assure delivery of available power. (2) There must be no interference with the ability of the Bureau to serve preference customers to the extent they would be served by federally constructed (3) Backbone lines must provide suitable integration among Federal project power facilities at the time required to meet project objectives, and project use must at all times be the overriding consideration. (4) Charges made for delivery of power must not adversely affect project feasibility and payout, and particularly must be such as not to reduce quantity or timing of irrigation assistance. (5) If utilities construct the backbone high-voltage transmission lines, they must accept also the responsibility of providing transmission for delivery at lower voltages to load centers of preference customers to the same extent as would prevail under a federally constructed system. CONCLUSION We are mindful of the many responsibilities of this committee and the mar problems and requests you receive. We are regardful of the importance d economic investing of public funds. This is also one of our responsibilit as public servants and we are in accord with your endeavors to invest only fr the development of projects that are self-supporting. We therefore urge your favorable consideration to the request of this associt. tion to appropriate at least $5 million, to be made available for fiscal year 196 to initiate orderly and efficient construction of the transmission lines running from the Flaming Gorge terminal station to Oak Creek, Colo., and from Gle Canyon to Farmington, N. Mex., thence to Poncha Junction via Curecanti. The members of the Utah association recognize that for them to participats in the advantages of the Federal system it will be necessary also to start the balance of the transmission lines. Therefore we respectfully request this committee to direct the Bureau Reclamation to proceed immediately with the necessary engineering studies right-of-way acquisitions, and initial construction of the lines from Flaming Gorge to Provo, Utah; Provo to Glen Canyon; Flaming Gorge to Sinclair, Wro.: Glen Canyon to Phoenix, Ariz.; and from Farmington to Albuquerque, N. Mex Delaying the development of the Colorado River storage project in this important aspect will further delay the realization of the return of the investment and the funds necessary for the development of present and future participating projects. We thank you for your time and attention. STATEMENT OF NORTON DAVIS My name is Norton Davis. I am manager of the Plains Electric Generation and Transmission Cooperative at Albuquerque, N. Mex., and have been a member of the Upper Colorado River Preference Users Committee which has previously appeared before this committee. Recently there has been organized the Colorade River Basin Consumers Power, Inc., which is designed to promote the maximum use of Colorado River project power and to represent the interests of the pref erence users. I am now serving as treasurer for this organization. The Plains Cooperative is composed of 11 member cooperatives and serves more than 50 percent of the total area of the State of New Mexico. Due to the almost phenomenal growth and development of the area served by it, resultin: from oil, gas, and uranium activities, as well as increased pumping and irrigation the demands for electricity have grown at such a rate that the situation is rapidly becoming critical. Since 1955, which was the first full year of operation, the demands have increased at an average of 12% percent annually, compounded; in fact, have practically doubled in this 5-year period, and from present estimates it appears that this rate of increase will continue or even accelerate over the next 5 to 10-year period. It is of the utmost importance, then, to us and to the area which we serve that we have an immediate understanding concerning the development of the Colorado River storage project-the amount of power to be anticipated, the f cost, and the availability of transmission facilities. It is practically impossible to make long-range plans until at least these basic facts are known. In reviewing the hearing before this committee, both before and after the authorization of the Colorado River storage project, it appears that the private power companies operating in the project area have always been willing to smission lines necessary to take the power at the generating iew of the relatively small cost of the transmission lines as comst of construction of the dams and generating plants, this is not ecially since they would reap practically all of the benefits of - investments. hile all proposals profess a willingness to provide space for omers, no price has ever been quoted, and all proposals seem the assumption that preference users will require only a small roject power. Further, they seem to be designed so as to prevent Reclamation from constructing an integrated system for the roject power. nean to criticize the principle so often announced by this comoperation between the Bureau of Reclamation, REA cooperate power companies in the utilization of available transmission hly desirable and beneficial, but we do believe that the systems pendent; and that if the transmission of project power is wholly privately owned transmission lines in any segment, then the Bureau of Reclamation to transmit power out of the project pardy. As a result, the feasibility of the project and the ability to protect preference rights would be impaired, which would, in late project authorization. ad estimates before the committee which show that the needs sers in the project area are sufficient to take all of the power on as it is available. at the construction of the backbone transmission line as proposed Corp. is essential to the project and to the protection of the S. ew Mexico is concerned, we are now connected to the Bureau of o Grande system at Albuquerque and, by the construction of the of transmission lines from Glen Canyon to Pueblo (including the Farmington to Albuquerque) as recommended in the report of Phail of the Kuljian Corp., and which all parties agree is necesbe in position to plan a future program looking toward a full Ower allocated to us. en proposed an appropriation of $5 million for immediate conin additional $5 million for future construction and planning. to urge the consideration of this committee to this proposal; and e committee to direct the Department of the Interior to make public the amount of power available and the cost at the various done immediately, either we shall run the chance of leaving a out essential requirements of power, or we will be compelled onal facilities, which may, in many instances, be duplicating, and r the use of project power unfeasible except on a standby, or of project power is beneficial, not only to us but also to the STATEMENT OF PHILIP N. SANCHEZ hilip N. Sanchez. I am president of the board of trustees of the Generation & Transmission Cooperative, Inc., at Albuquerque, im also one of the organizers and a member of the board of Mora-San Miguel Electric Cooperative located in northeastern Miguel Electric Cooperative is a distribution cooperation and was organized in the State. It was originally organized in 1941 and rations in 1946. At the time we commenced operation we were our source of power upon a privately owned utility operating d were so dependent until the commencement of operation by Generation & Transmission Cooperative, Inc., in 1955. During in which we were dependent upon this private utility for our , we were continually harassed and our growth and development eason of the apparent unwillingness of the private utility to |