40,000

TOTAL ANNUAL COST OF IRRIGATION

The total annual cost of irrigation benefits are estimated at $3.19 for the first four years if a depreciation reserve is provided. If no depreciation reserve is provided the cost is $2.59 per acre.

With $2 per acre for construction beginning the fifth year and continuing to and including the eighth year the total annual cost for irrigation excluding depreciation will be $4.59 per acre. Continuing thereafter for 32 years the annual cost will be $5.09 per acre.

When the construction payments from the land are added to the proportionate share of the estimated surplus power revenue the combined receipts from irrigation and power will not only liquidate the investment for each division or block of land irrigated within the 40-year period from the time each division is first irrigated but there will be sufficient surplus power revenue accruing during the 40 years subsequent to the completion of the Columbia River Dam to liquidate about one-half of the entire irrigation investment required for the ultimate project of 1,199,430 acres.

ABILITY OF LAND TO PAY FOR IRRIGATION BENEFITS

The lands to be irrigated on the project are well adapted to the production of alfalfa, sweet clover, potatoes, corn, and small grains. It is expected that the farm production will be largely fed to livestock and converted into beef, pork, and mutton. Dairying and poultry raising will also find a place in the farm program. With a proper rotation program and with a normal price relation between products of the farm marketed and those purchased it is expected that the land will be able to meet an annual charge of not to exceed $5.25 per acre for irrigation benefits.

PAYMENTS BY OTHER BENEFITED INTERESTS

While the foregoing charges are assumed to be borne entirely by the land and can only be realized by providing interest-free money for the entire irrigation investment and by assuming that about onehalf of the irrigation investment is repaid from surplus power revenues, there are other interests than irrigation which will be greatly benefited by the proposed development and the charges accruing against the land might be reduced by applying an ad valorem tax to all property benefited within the irrigation district as provided by Washington State law.

POWER MARKET

Market area. The market area in which the power from the proposed Columbia river development would have to be absorbed includes the area within a radius of approximately 300 miles of the dam site which includes all of the State of Washington, the northern part of Oregon, the northern part of Idaho, and the western part of Montana. Drawing No. 222-D-23 is a map of this area showing the principal power systems operating therein. The most important power market in this territory is the Puget Sound district in western

Washington which is the logical market for a large part of the Columbia River power. Following is a list of the principal power systems serving this territory:

Municipalities.-City of Seattle, city of Tacoma, city of Centralia, Utility companies.-Puget Sound Power & Light Co., the Washington Water Power Co., Pacific Power & Light Co., Mountain States Power Co., Grays Harbor Railway & Light Co., Willapa Electric Co., Western Washington Electric Light & Power Co., Olympic Public Service Co., Washington Gas & Electric Co., the Montana Power Co.

Manufacturing companies.-Crown-Zellerback Corporation, Weyerhaeuser Timber Co.

The city of Seattle has been operating a municipal power system since 1905 and now supplies about 75 per cent of the consumers in the city. The city has 4 hydroelectric plants with a total installed capacity of 98,300 kilowatts and one steam-electric plant of 30,000 kilowatts capacity making a total combined capacity of 128,300 kilowatts. The systems of Seattle and Tacoma are interconnected through a 66,000-volt transmission line which has a capacity of approximately 15,000 kilowatts. Power from the city's hydroelectric development on the Skagit River is transmitted to the city over a 165,000-volt transmission line 100 miles in length.

The city of Tacoma has a municipal power system which has been in service since 1893 and this system now serves the entire city. The city's generating facilities consist of 3 hydroelectric plants having a combined installation of 116,000 kilowatts and 2 steamelectric plants having a combined capacity of 34,000 kilowatts, making a total capacity of 150,000 kilowatts. The city's system is interconnected with the city of Seattle and with the Puget Sound Power & Light Co. Power from the city's Lake Cushman hydroelectric development is transmitted at 110,000 volts over a line about 35 miles in length.

The city of Centralia completed the initial installation of 4,000 kilowatts in a hydroelectric power plant in 1930. The ultimate capacity of this development is 11,000 kilowatts. Power is transmitted to the city over a 66,000-volt transmission line 25 miles in length.

The Puget Sound Power & Light Co. which operates under the supervision of Stone & Webster (Inc.) serves the western part of Washington including the cities of Seattle, Bellingham, Everett, Olympia, Chehalis, Bremerton, and Wenatchee. The power system includes 15 hydroelectric plants having a combined installed capacity of 156,735 kilowatt and seven steam-electric plants having a combined installed capacity of 112,000 kilowatt making a total installed capacity of 268,735 kilowatt. This system is interconnected with the Washington Water Power Co. on the east and also with the city of Tacoma, the Washington Pulp & Paper Corporation, the Northwestern Electric Co., Western Canada Power Co., Great Northern Railway, Weyerhaeuser Timber Co., and with the United States navy yard at Bremerton. In 1931 the initial installation, consisting of two units of 15,000-kilowatt capacity each, in the new hydroelectric development at Rock Island on the Columbia River was placed in service. This development is planned for an ultimate