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<br />, <br /> <br />. <br /> <br />. <br /> <br />Lower Basin preference customers in Arizona sensed the <br />dangers to the preference concept inherent in the investor-owned <br />utili"ies' offer. While having no formal relationship with the <br />Upper Basin Preference Users' Committee, Lower Basin preference <br />customers had been in contact with the Upper Basin group. No <br />speciEic plan had been advanced, but general discussion between <br />preference customers in the two regions suggested that Arizona <br />preference customers might purchase all CRSP power beyond what <br />Upper Basin preference customers could use./30 This would <br />eliminate the possibility that the investor=0Wned utilities would <br />purchase surplus power at non-firm rates. <br /> <br />The Bureau sponsored another meeting between the investor- <br />owned utilities and preference power customers in both Upper and <br />Lower 3asins on October 13, 1959, to discuss the green book plan. <br />Preference power customers did not believe the investor-owned <br />utilities' plan represented their interests, and continued to <br />find it unacceptable./31 The USBR engineering staff also had <br />difficulty endorsing the investor-owned utilities' proposal. The <br />Burea~ was of the opinion that a 345 kV backbone transmission <br />system was superior to the 230 kV system the green book plan <br />showed; the additional capacity would be utilized for normal <br />power pool operation and exchange of seasonal diversity./32 The <br />inve:tor-owned utilities requested that a joint engineerIng <br />committee form and conduct additional joint studies on the CRSP <br />transmission system, taking into consideration the full seasonal <br />diversity between Arizona and the Upper Basin states./33 <br /> <br />The Bureau agreed to the investor-owned utiliti~s' request, <br />and invited preference customers to participate in the digital <br />computer load flow and transient st~bility studies which would be <br />performed at Arizona State University in January 1960. <br />Commissioner of Reclamation Floyd Dominy had set forth the <br />Bureau's general position regarding the acceptability of any <br />proposal on October 26, 1959; these points became the yardstick <br />by which all plans would be measured./34 In addition to the <br />points Commissioner Dominy made, the Bureau released power <br />allocation figures to be used in the study which called for a <br />certain amount of power to flow south of Glen Canyon for a ten- <br />year oeriod and another amount for a longer period. Lower Basin <br />preference customers understood the longer period would be in <br />perFet~ity,!35 <br /> <br />~~e Upper Basin Preference Users' Committee, with neither <br />the technical nor financial resources of the investor-owned <br />~tilities, realized that preference customers needed to develop a <br />de:i..ite and unified policy in order to be successful in what ~as <br />~ujck~~ ~ecomina a private powe~;public power b~ttle. ~s a first <br />ste~, the Comlnittee hired the Kuljian Corporat~0n of <br />P~ila-~~~~hia, represented by former ~SBR A~2i3tant Co~mi~sioner <br />~la~ve~. ~'cPhai:, :0 ~tud~' th~ ?ow~r loads ~~d r~auirefi;e~~s ~n toe <br />':3ric~E areas and ~repar~ a counterproposal to the green book <br />?13n. ;F a second step, they decided to forma:ize the D:ef~r~nc~ <br /> <br />7 <br />