Federal projects constructed by or under supervision of Army Corps of Engineers for which the power-generating facilities were installed and are owned and operated by private companies Winfield lock and dam (navigation). Hudson, N.Y. Upper Narrows Reservoir (flood control and navigation). Yuba, Calif. Lower lock and dam (navigation). Mississippi, Minn. Ford Motor Co. (Green Island plant). 7,200 13 80, 320 239 14, 400 362 2,040 539 14,400 1175A 14,400 1175B Lock and dam No. 17 (flood control and navigation)... Black Warrior, Ala. Green Mountain Power Corp. (Waterbury No. 22). Applications for licenses pending before Federal Power Commission, Apr. 8, 1965 EXECUTIVE Department, Atlanta, July 17, 1962. Hon. G. ELLIOTT HAGAN, U.S. Congressman, House of Representatives, DEAR ELLIOTT: I have previously advised Lieutenant General Wilson, Chief of Engineers, of my wholehearted approval of his proposed report to the Congress relative to the water resources development of the Flint River in this State. It is my sincere hope that the Congress will provide the necessary funds for the immediate implementation of this project. It is my firm belief that the construction of all five dams and the navigation channel in the Flint River complex is in the best interest of the citizens of Georgia. This project will enhance water conservation, flood control, wildlife, recreation, and power generation. In this regard, I have been advised that in the event the development of the Flint River is authorized by the Congress that the Georgia Power Co. is prepared to enter into a joint development under which the Federal Government will build the reservoir and dams and the Georgia Power Co. will build the necessary powerhouses under a license issued by the Federal Power Commission and in a manner acceptable to the Corps of Engineers. After thorough investigation, I have determined that it would also be in the best interest of the citizens of Georgia that the private power interests be authorized to construct, own, and operate the hydroelectric generating plants in the three upper dams of this project; namely, Spewrell Bluff, Lazer Creek and Lower Auchumpkee Creek. The advantages of such a joint undertaking are obvious. If a private company is authorized to participate, it will, of course, substantially reduce the Federal expenditure in the overall development of the Flint River and will enable adjacent counties to receive substantial tax revenues from the owners of the generating plants. May I, therefore, respectfully suggest that you join me in recommending the construction of this project on a joint Federal-private power company basis. Let it be clearly understood, however, that my recommendation that the private interests be authorized to participate in this project is conditioned upon the fact that such participation will in no wise delay congressional approval of this project nor immediate implementation of the same by the Corps of Engineers. With kindest regards, I am Sincerely, S. ERNEST VANDIVER, Governor. Mr. JONES. Next is our old friend, our beloved friend, Walter Harrison, representing today the Georgia Electric Membership Cooperative. Walter, it is always a pleasure to have you appear before the committee. STATEMENT OF WALTER HARRISON, MANAGER, GEORGIA ELECTRIC MEMBERSHIP COOPERATIVE, MILLEN, GA. Mr. HARRISON. Thank you, Mr. Jones, and members of the committee. I am here today representing 41 rural electric cooperatives of Georgia with a membership of 327,000. I shall file for the record, with your permission, a copy of the statement. I will make my remarks as brief as possible, recognizing the time. The Flint River has been before the Congress for a great number of years. We are in a growing economy. Mr. JONES. Just a moment. Mr. Harrison, do you have a statement that you can insert for the record? Mr. HARRISON. Yes, sir. 52-529-65—pt. 1— -18 Mr. JONES. Fine. Will you give it to me so we can follow your testimony? Mr. HARRISON. Yes, sir. We in Georgia are in a growing economy. The power companies have just made a statement that they are in continuing need of more power resources, and so are we. The cooperatives are doubling their load every 8 to 9 years, and will be in the market for additional kilowatt-hours as the years come and go. I want to take a quick look at the Flint River in Georgia. It was in 1836 that the Georgia General Assembly took a look at the navigation on the Flint River by an appropriation of $10,000. In 1872-now, that was 10 years before the lights came on in New York City-in 1872, the Federal Government authorized a survey of the Flint River from Albany, Ga., to Chattahoochee, Fla. In 1908 get these years-1908, 1909, and 1913, there was land acquired on the Flint River at these very locations by the Flint River Power Co., the Central Georgia Power Co., and Georgia Construction Co., for the purpose of building the dams that we are today asking you to authorize. The power company later acquired these lands from these various entities and have had this land in their ownership since that time. For more than 50 years, the Georgia Power Co. has owned and controlled these sites that we are now asking authorization for. In 1939, the Corps of Engineers recommended a general planfor full development of the Apalachicola, Chattahoochee, and Flint River systems. On October 27, 1961, the Corps of Engineers announced they were planning studies of several hydro sites. In August 1962, the corps recommended the development of three dams at the fall line and two below for navigation purposes, the latter two to be developed by 1980. Keep in mind that the Georgia Power Co. had knowledge for 16 years that the Federal Government was making plans and studies of these various damsites, and they did not move until such time as Federal development was imminent. Now we oppose partnership. We oppose building a supermarket and giving the cash register to the Georgia Power Co. When the Federal Government was about to develop the Savannah River, the Georgia Power Co. came into the picture. When the Federal Government was about to develop the Coosawattee River, a north-central Georgia project, they asked for partnership. They always move in when Uncle Sam is about to begin an activity. Now I want to remind this committee that the total expenditures for these power facilities will be paid for by the ratepayers and the Government will be repaid every dime. At the end of 50 years, this becomes a very valuable asset to the Government. The Treasury will be made whole; the taxpayers will have something they can consider a great value in the future. Under the Flood Control Act, we as preference customers, the cooperatives and municipal systems of Georgia, will have a direct savings of $15 million in that period of time. Besides successfully putting a ceiling on the electric rates in Georgia that has been the effect of the five dams already built-and you will find in my statement that these are not giveaway projects; they are investments in water resources-the five projects underway now in Georgia and in operation have had an accumulated revenue of $87 million. You are making an investment in the future of this country when you pass on these favorably, as I understand the proposition. Now, we have the finest partnership arrangement in Georgia that I know anything about. We enjoy the finest relationships with the Georgia Power Co. Now, you men of the Congress know every now and then you have to step on someone's toes to make him behave. That is true with big business, that is true with power companies, and that is true with almost anybody. Back in 1957, we entered into contracts for Federal power. The marketing agencies, the Southeastern Power Administration is at Elberton, Ga. By that contract, the power company got the benefit of peaking and dump power. We got the benefit of a lower rate and also all the power requirements that the cooperatives needed in the State of Georgia. The power company, in addition to that, got $1,044,000 a year to wheel power-which is nothing in the world, gentlemen of the committee, but the power replacement deal. The power generated at the largest installation in Georgia on the periphery of Georgia-Mr. Dorn-at Clark Hill is only wheeled to Augusta, Ga. Yet in the wheeling contract, we had to take into consideration wheeling it as far as the Alabama line down near Chattahoochee, Fla. We think we have a good deal there. It has been working for 8 years July 22 of this year. If we had any argument about that deal, we would have said so; because in the contract, we had 2 years in which to give notice if we wanted any different arrangement. In the signing of the contract, here is what they said, and they wrote the contract-of course, we looked over their shoulders: The parties anticipate that all or part of the capacity and energy from other Federal reservoir projects constructed in or upon the periphery of the company's service area be marketed in the service area of the company under agreement between the Government and the company similar to the one herein set forth. Gentlemen, if you stayed in session here from now until next Christmas, you could not find a better contract, one with which the company is in thorough accord. There has been no rupture of feelings on the existing contract and we say that it is to the people's advantage that this installation be put in at Federal expense in order that the other benefits might flow. Instead of letting the cash register flow to the Georgia Power Co., let it be Uncle's cash register. Let if help pay for flood control, navigation, and what have you, south of the fall line. Now, there have been some questions. There is one more statement I would like to make in that connection. The annual charges are $4,737,000. The power company is asked that the people pay the $2,437,000 for the privilege of doing what this great Government has done in the matter of flood control, navigation, recreation, fish and wildlife, and what have you. That is a fact that ought to be taken into consideration. Now I want to get, Mr. Chairman, to a few pertinent questions that have been asked. The question was asked about Governor Sanders' approval of the joint partnership. Governor Sanders was taken to the southern company meeting on the banks of the Chattahoochee to make the annual members' address. He was treated so royally by the Georgia Power Co. and the other three companies that at that meeting he stated that he would like to see more private enterprise, and then came out for the Flint development as a private undertaking. Governor Sanders has now learned the political facts of life-for instance, last November and I am quite sure his thinking has been changed considerably. He has an advisory engineering board. I have been a resident of Georgia for 65 years plus-too long. I served in the general assembly for 22 years, and I am a pretty keen observer in some facets of political life. I know some of the political facts of life-I have been beat, gentlemen. I have never heard of the names of the advisory members of that engineering board. I have never known of any public hearings that have been held by that board in Georgia. Before you advise a Governor or a Senator or a Congressman, just a buck private, you ought to get both sides. or My good friend, Governor Sanders, is now advocating-1 guess he will come before your committee, he wants to build a cross-State canal from the Flint River to the Altamaha. It has been more than 100 years that we have been talking about the Flint. Let's develop the Flint before we give him his cross-State canal. Now, much hue and cry has been stated here about the U.S. Study Commission and its recommendations. The U.S. Study Commission only had a limited sum of money. It was only devised- -as a matter of fact, Dick Russell captured the idea from my good friend Bob Cook, of Oklahoma, on the Red River. We undertook that study to put up some signposts as to the need of water resource development in our State. It is not a detail study. It so happens that the Chairman of that Commission feels very kindly toward my good friend the power company, and I have no fuss with that; I like good friends, too, but that is not a detail study, and you cannot follow their recommendations in toto. The power company would not want to do it and we would not want to do it. Now, I think the present plan is good. You recall when the Flint River was uppermost in your minds a year or two ago, Admiral Vinson, Congressman Vinson, beloved as he is, had pretty good control. He was the dean of the Georgia delegation. He has since retired to his farm in Milledgeville. He did not speak my language on TVA land, Mr. Chairman. Neither did he talk our language on water resource development. Now I want to reemphasize here that the ratepayers in Georgia are the taxpayers in Georgia also. The only thing the power company is doing is just collecting the money over from one till and putting it in another till. It is all wrapped up in your rate. I would also like to remind you that things have been going so well in Georgia that there has not been a full-fledged rate review of the Georgia Power Co. rates since 1952, and I think it is about time to spend some hours on that subject. Now, the money to be spent on these two dams that we are talking about today are investments. They are not contributions; they are investments. |