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<br />. <br /> <br />. <br /> <br />generated at federal power facilities should be sold to <br />preference customers. Upper Basin preference customers would not <br />be able to purchase all power generated on the CRSP until the <br />mid-1970's. If the power was to be marketed only in the Upper <br />Basin, some of it would have to be sold to private utilities or <br />it would simply go to waste. Lower Basin preference customers <br />believed the preference concept should take priority over any <br />other marketing plan, including one that limited preference <br />purchases to the Upper Basin. <br /> <br />The Lower Basin, then, had always claimed a share of the <br />CRSP power, whether it was based upon projected load demand, <br />firming deficient Hoover energy due to Glen Canyon Dam's <br />construction, or because of the priority all preference customers <br />should have in the purchase of federal power. <br /> <br />The Allocation Process: Clarifying positions <br /> <br />Faced with these contrasting claims on CRSP power, the USBR <br />moved cautiously to determine the power marketing area. Congress <br />had been critical of the Bureau's supposed lack of consultation <br />with both private utilities and preference customers,/27 so the <br />Bureau proposed several joint meetings with various --- <br />representatives of the interested groups to talk about CRSP <br />transmission plans. To begin discussion, the Bureau's Region 4 <br />Office invited a representative group of investor-owned utilities <br />and preference customers from states in both the Upper and Lower <br />Basins to meet in Salt Lake City on July 10, 1959. Several plans <br />relating to the technical features of the CRSP transmission <br />system would then be offered for review and comment./28 <br /> <br />The investor-owned utilities "green book plan" (October <br />1959} was a direct outcome of this meeting. This initial study <br />showed no power allocation to Arizona, and a CRSP transmission <br />system consisting primarily of 230 kilovolt lines (230 kV}. <br />While the investor-owned utilities provided for adequate <br />interconnection between the CRSP power plants and their planned <br />coal-fired plant at Four Corners, New Mexico, the green book plan <br />showed no transmission lines adequately connecting CRSP plants <br />with Hoover and Parker-Davis Dams./29 <br /> <br />Upper Basin preference customers did not advocate the <br />transmission system put forward by the investor-owned utilities <br />for several reasons. Their first concern was the wheeling charge <br />the investor-owned utilities would levy on all CRSP power <br />delivered over their transmission lines. Their second concern <br />was that the investor-owned utilities would be able to purchase <br />laroe amounts of surDlus CRSP power at rates less than 6 <br />~ills/kwh, thus ennangering the amount of monev available for <br />proiect repay~ent. Finally, and perhaps most imDortantl~, the <br />~D?er Basin preference customers feared that the investor-owned <br />u:~litles wouid be in an optimum positlon to somehow con~rol the <br />?o~er produced on the CRSP, a perspective ~hich fuelec the notion <br />t~~t t~i5 ~3S 2 ~ublic power versus ?rivat~ ~ower contro':~rsy. <br /> <br />6 <br />