installation of 150,000 kilowatts. Power is transmitted from this plant to the Puget Sound district over 110,000-volt lines.

The Washington Water Power Co. is controlled by the American Power & Light Co. which in turn belongs to the Electric Bond & Share Co. group of properties. This company operates in eastern Washington and northern Idaho and has 13 hydroelectric power plants with a combined generating capacity of 205,584 kilowatts. The company is interconnected with the Pacific Power & Light Co., the Montana Power Co., Puget Sound Power & Light Co., Mountain States Power, Stevens County Power & Light Co. and the Chicago, Milwaukee & St. Paul Railroad. The company has a large hydroelectric plant at Chelan Falls where two units of 24,000-kilowatt capacity each are now installed and where an additional 72,000 kilowatts can be developed by the installation of additional units as may be required to meet the growth in load.

The Pacific Power & Light Co. operates in southern Washington, northern Oregon and northern Idaho. It is controlled by the American Power & Light Co. and belongs to the Electric Bond & Share group of properties. The system comprises five hydroelectric plants having a combined installed capacity of 13,500 kilowatts and two steam-electric plants having a combined capacity of 3,000 kilowatts, making a total capacity of 16,500 kilowatts. The system is interconnected with the Washington Water Power Co. and with the Northwestern Electric Co.

The Mountain States Power Co. operates in northwestern Washington, western Oregon, and northern Idaho. It is controlled by the Standard Gas & Electric Co. which in turn belongs to the H. M. Byllesby & Co. group of properties. The company has a small power plant at Sandpoint, Idaho, with an installed capacity of 500 kilowatts and obtains most of the energy required on this system from the Washington Water Power Co. over a 66,000-volt interconnection. The Federal Light & Traction Co., a subsidiary of the Cities Service Co. owns and operates a number of small power systems along the west coast of Washington. These properties include the Grays Harbor Railway & Light Co., the Willapa Electric Co., the Western Washington Electric Light & Power Co., and the Olympic Public Service Co. They have a total generating capacity of 13,186 kilowatts of which 12,900 kilowatts is steam-electric and 286 kilowatts is Diesel-electric. Additional power is obtained from lumber mills in the immediate vicinity and from the Puget Sound Power & Light Co.

The Washington Gas & Electric Co. operates in the vicinity of Longview, Wash. The company is controlled by the North American Gas & Electric Co. It has a steam-electric plant at Longview having a capacity of 24,000 kilowatts.

The Montana Power Co. is controlled by the American Power & Light Co. and belongs to the Electric Bond & Share group of properties. The western part of the Montana Power Co. system in the extreme western part of the State of Montana is in the territory considered as the market area for the Columbia River power. The Thompson Falls hydroelectric plant, which is located in this territory, has an installed capacity of 35,000 kilowatts. This plant is interconnected with the Washington Water Power Co. on the west and with the main system of the Montana Power Co. on the east through the Chicago, Milwaukee & St. Paul Railway Co.'s lines.

The Crown-Zellerbach Corporation which is engaged in the paper industry has two hydroelectric plants having a combined capacity of 25,000 kilowatts and six steam-electric plants having a combined capacity of 30,150 kilowatts, making a total installed capacity of 55,150 kilowatts. This company has interconnections with the Puget Sound Power & Light Co. The Washington Pump & Paper Corporation is the largest subsidiary of the Crown-Zellerbach group in Washington.

The Weyerhaeuser Timber Co. is engaged in the lumber industry in the Northwest. It has three important steam-electric generating stations having a total installed capacity of 29,000 kilowatts.

Future increase in power usage. During the 10-year period ending with 1930 the requirements for power, as shown in Table No. 7, in the territory within a radius of 300 miles of the proposed Columbia River development have been increasing at an average rate of 9.5 per cent, per year, compounded annually. The population of this territory is approximately 3,000,000 or about the same as the northern portion of California, and the energy generated during 1930 was approximately 85 per cent of the amount required to supply the northern California market. A study was made of the northern California power market in 1928 by Mr. Lester S. Ready, consulting engineer of San Francisco, Calif., in connection with the proposed Kennett Reservoir development on the Sacramento River, a report on which was published as Bulletin No. 20 of department of public works of the State of California. In that report it was estimated that the future growth in load in northern California would be at a reducing percentage, ranging from approximately 7 per cent in 1928, to as low as 4 per cent about 1950.

TABLE NO. 7.—-Data for power market, which includes the area within a 300-mile radius of the proposed dam site, and all of Oregon

Figures in column (2) were compiled from reports of the Puget Sound Power & Light Co., city of Seattle, city of Tacoma, Wash. Pulp & Paper Corporation, Gray's Harbor Railway & Light Co., Pacific Power & Light Co., the Thompson Falls plant of the Montana Power Co., the Washington Water Power Co., which includes the Lewiston and Grangeville plants in northern Idaho, all associated companies and their predecessor companies.

Figures in column (3) were taken directly from the reports of the United States Geological Survey. Figures in column (4) are the total of those in columns (2) and (3).

Figures in column (5) were derived from those in column (4).

Figures in column (6) were derived from those in column (5) by assuming a 50 per cent load factor. Figures in column (7) were compiled from reports of the companies mentioned in note (2) together with data obtained from reports of the United States Geological Survey for the State of Oregon.

The Seattle district engineer, Corps of Engineers, U. S. Army, made a very comprehensive investigation of the power market situation in the Northwest and in a report on the Columbia River dated July 31, 1931, estimated that the future increase in power requirements would be at a gradually reduced rate of increase starting with a rate of increase of 9.5 per cent in 1930, decreasing to 4.75 per cent in 1960 and finally reaching zero in 1990. This estimate of load growth is shown graphically by curves A on drawing No. 222-D-6. For the purposes of this study a somewhat more conservative assumption has been used in regard to future increase in power requirements. A gradually decreasing rate of increase has been assumed beginning with 8 per cent in 1930 and decreasing to 4 per cent in 1960. This is shown graphically by curves B on drawing No. 222-D-6.

Absorption of Columbia River power. The installed generator capacity in the territory in which the power from the proposed Columbia River development would have to be absorbed now amounts to a little over one million kilowatts and if the load continues to increase in the next decade as it has in the past, but at a gradually reduced rate of increase as suggested above the installed capacity will have to be doubled by 1940 in order to supply the demand. Practically all of the major hydroelectric developments on which construction has been started by the various power companies and municipalities will have been absorbed by 1940, which is the earliest date that power from the Columbia River development could be made available.

Assuming that the power load continues to increase after 1940 in accordance with curves B on drawing No. 222-D-6, there would be required a total of 5,000,000 kilowatts of generating capacity by 1955. The additional generating capacity that would have to be provided during the 15-year period 1940 to 1955 would amount to about 3,000,000 kilowatts, whereas the proposed installation at the Columbia River power plant is 1,500,000 kilowatts. In other words the proposed installation of 1,500,000 kilowatts would take care of approximately half of the expected increase in power requirements during a 15-year absorption period. The other half of the expected increase would have to be supplied by other hydro or steam developments.

The total amount of energy generated in the territory in which the output of the proposed power plant would have to be utilized amounted to 4,030,000,000 kilowatt-hours in 1930. If the energy requirements continue to increase in the future as they have in the past 10 years, but at a gradually reducing rate of increase, as indicated by curves B on drawing No. 222-D-6, the total amount of energy generated will be approximately 8,000,000,000 kilowatt-hours in 1940, and this will have increased to over 20,000,000,000 kilowatthours in 1955. The annual energy requirements will have increased 12,000,000,000 kilowatt-hours in the 15-year period from 1940 to 1955 during which it is assumed that the energy output of the Columbia River power plant will be absorbed. The total amount of firm energy which this plant will make available will be 7,000,000,000 kilowatt-hours per year, which amount will be sufficient to meet less than half the expected increase in the 15-year absorption period. The remainder would have to be supplied from other sources.

222-D-6-Population in hundreds of thousands; power output in billions of kilowatt-hours; load and capacity in millions of kilowatts

0.1

With proper cooperation on the part of the various power companies and municipalities which will have to absorb the power output of the proposed Columbia River development no serious difficulty should arise in connection with the absorption of this large block of power within 15 years after the initial installation is completed and it might be possible that the full output could be absorbed in a shorter time. The economic feasibility of the project is dependent to a very large degree on the rapidity of absorption of the power, particularly during the early years of operation when the revenues from power will be insufficient to meet the annual expense and deficits will be inevitable.

COMPETITIVE POWER

The economic limitations of transmission of electric power over high voltage transmission lines make it necessary that the power to be developed at the proposed Columbia River dam be utilized within a radius of approximately 300 miles. Under certain special conditions surplus power available at the Columbia River dam might be used in lieu of power from other sources and thereby release the latter for use elsewhere in more distant markets, but such an arrangement would be used only as a means of utilizing surplus energy and would have little effect on the price of firm power.

The Pacific Northwest is estimated to have 38 per cent of the total potential water power in the United States and quite naturally the present power requirements are supplied largely from hydro sources. The installed generator capacity in this territory is now a little over 1,000,000 kilowatts, of which about 28 per cent is in steam plants and the remainder or about 72 per cent in hydro plants. Previous to 1929 the steam plants produced about 5 per cent of the total energy while in 1929, due to low stream flow, the output of the steam plants increased to 14.5 per cent and in 1930 it was about 10.4 per cent of the total power generated.

It is probable that a large part of the additional power installations in the Northwest during the next decade will be hydro rather than steam as all of the large power companies and the municipalities which have power systems have hydro developments planned and partially developed. The Puget Sound Power & Light Co. has the Rock Island development on the Columbia River where an additional 120,000 kilowatts can be installed; the capacity of the Lake Chelan development of the Washington Water Power Co. can be increased. by 70,000 kilowatts by the installation of additional generating units; the Inland Power & Light Co. has a development on the Lewis River where 160,000 kilowatts will be developed ultimately. The city of Seattle has its Skagit River development underway where some 780,000 kilowatts can be developed ultimately, which is expected to meet the needs of the city during the next 15 years. The city of Tacoma has its Cushman development, the capacity of which can be increased by 100,000 kilowatts. The proposed hydroelectric development which the Montana Power Co. has planned at the outlet of Flathead Lake will add about 100,000 kilowatts to the generating facilities of that system.

Naturally the smaller hydro developments located close to the load centers and which were easy and cheap to construct were undertaken