from that dam on March 9. There was quite a footrace as to which one of them would get into production first. This one went into production 3 days after Norfork. During 1944 we sold, on an emergency basis 6,154,776 kilowatthours at the Denison Dam, for which we received a revenue of $30,000. During 1945 we sold 215,717,000 kilowatt-hours, for which we received a revenue of $672,000. That is from a plant with one unit also. I would like to place in the record this summary statement on the Denison Dam project, Mr. Chairman. Mr. JOHNSON of Oklahoma. Without objection, it will be made a part of the record. (The matter referred to is as follows:) Denison Dam project—Summary of operations from start of operations, June 1944 to Dec. 31, 1945 1 USED requested that estimated cost of $13,000 per month be used in lieu of actual cost. Mr. WRIGHT. That power was sold (30,000 kilowatts of the installed capacity) 35,000 to the Texas Power & Light Co., and 5,000 kilowatts were sold to the Oklahoma Gas & Electric Light Co. in Oklahoma. The connection into Oklahoma was one that was put in for construction, and it will carry no more than 5,000 kilowatts. As a result of the sales of power to the Texas Power & Light Co., they agreed that they would reduce their rates to governmental functions by 10 percent, and they agreed that they would effect rate reductions to their other customers, exclusive of REA cooperatives of not less than $300,000 a year. They further agreed to maintain it in effect so long as they were purchasing power from the Denison Dam. Then they agreed that they would allow the REA cooperatives a rate of approximately 6 mills per kilowatt-hour to all of the coopera tives served on their system. The arrangement at that time was that the Texas Power & Light Co. had a rate to these cooperatives of about 15 mills per kilowatt-hour but out of the goodness of their heart they had granted a credit, which they could remove on 5 minutes notice, if they desired, to the cooperatives resulting in a rate of approximately 6 mills per kilowatt-hour. They agreed under this contract to keep that credit in effect and force as long as we were selling them power. The Texas Power & Light Co. lived up to the terms of that agreement, and they made those reductions. The Oklahoma Gas & Electric Co. agreed to reduce its power rates to governmental functions of the Federal Government by $25,000 a year. This was also carried out by the company after the purchase of power. So much for the Denison operation. We have had very few outages at Denison. The thing has operated continuously. We have at both Norfork and Denison met most of the emergencies that occurred, and in the case of Denison every emergency that occurred was met. The operation of both projects has been splendid, in my judgment. The Denison project, during the lower Colorado River strike in that system down there was able to step into the breach and help the Texas Power & Light Co. provide power for all in the lower Colorado River area by transmission of the power south, where it normally flows north. Mr. JOHNSON of Oklahoma. When was that strike, Mr. Wright? Mr. WRIGHT. It was during this spring. Mr. JOHNSON of Oklahoma. The spring of 1945? Mr. WRIGHT. Yes, and it affected, I believe, some 19 counties. There was some sabotage mixed up in it. It was a little bit of a vicious character. GRAND RIVER DAM PROJECTS In the case of the Grand River Dam project, we are still in the process of finishing it. We were prevented during the war, and properly so, from building some of the integral parts of the project proposed and financed by the State of Oklahoma. We have proceeded with the construction as rapidly as possible. We have constructed some parts of the project which the State of Oklahoma did not contemplate when we took it over. It was necessary to do so during the war. The present situation with respect to the construction of that project is that out of a total cost of some $26,199,000 of the project there remains about $255,000 not yet under contract, and probably another $250,000 to be ultimately completed. The fifth unit should go in up there about the middle of March. That will complete the construction of the Pensacola project, which is ordinarily called the Grand River project. In connection with the purchase of rights-of-way and the allotment of $2,000,000 made for that purpose, we expect to have all of that work, except the extended litigation, wiped out by June 30 of this year. We have the right to use all of that land now, and there is plenty of money in the allotment, and we will undoubtedly effectuate a saving of, possibly, as much as $200,000 out of the $2,000,000 allotment to carry that program through. I would like to file in the record for the committee's information a statement in detail of the construction status of the Grand River Dam project. Mr. JOHNSON of Oklahoma. Without objection, that may be inserted as a part of the record. (The matter referred to is as follows:) Summary of project costs Summary of project costs, item No. 3 construction-Continued Summary of project costs—Break-down of costs to be completed Total cost of transmission facilities___ Total additional cost of fifth unit. 3. Miscellaneous work orders... 4. Credits to be canceled from contract: Contract 23, transformers__ Contract 23, M. F. carrier- Total credits__. Net cost of land, construction, and engineering.. 5. Administration, legal, etc _ _ _ _ 248, 250 - 33, 000 235, 750 20, 000 255, 750 RAISING OF RESERVOIR ELEVATION Mr. WRIGHT. The status of the pool raising allotment is that there If there is no objection I would like to insert in the record an Mr. JOHNSON of Oklahoma. If there is no objection, it may be included. (The matter referred to is as follows:) Grand River Dam project-Raising of reservoir elevation—Summary of project costs During the past year the operations of Grand River Dam went through a tremendous cycle of changes. We operated until, I think, the 8th day of September at full capacity, continuing to serve the aluminum plant at Lake Catherine, Ark. About the 6th day of September our load dispatcher at Lake Catherine reported to us that the men at the plant had received their notices that the plant was going to close down on the 8th day of September. We had no notice from the operating Aluminum Co. of this, and I called the superintendent on the telephone, who advised me that they were closing down. I asked him what they were going to do with the power that they were taking, and he said he was going to open the switch. I asked him if he could not cut down his operations in such a way that he would take the load of 40,000 kilowatts off of us in blocks, and his answer was that his orders were to open the switch, and that is what he said he was going to do. Instead of opening them at 4 o'clock on September 8, 1945, as they were supposed to and they said they would do, they actually opened them at 3:58, about 2 minutes earlier. When a high transmission line is involved, the opening of a switch 2 minutes earlier than scheduled could easily result in death. Fortunately the systein stayed together without interruption, and we took that bad operating procedure without damage. We had a contract requiring 30 days' notice for termination and they paid us $100,000 for the next month. The aluminum operations themselves terminated on the 8th day of September. Since that time our load has been about 6,000,000 kilowatt-hours a month, when it normally runs about 30,000,000 to 40,000,000 in normal load. I immediately contacted electric companies and made arrangements with them to sell them another 5,000,000 kilowatt-hours a month, and they seemed to be glad to get it, although they say they never need power. We are running about 12,000,000 kilowatt-hours a month firm sales and all the secondary we are able to give them. We have run several months of 30,000,000 kilowatt-hours. |