WSP08794

• File Number: 8220.100.50
• Description: CRSP - Power Marketing
• Basin: Colorado Mainstem
• Date: 6/1/1983
• Author: Karen Smith
• Title: Dividing the Power - The Colorado River Basin States and the Colorado River Storage Project
• Water Supply Pro - Doc Type: Publication

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user organization, and invited Arizona rreference customers to
jOin and participate in the Kuljian study./36

Arizona preference users, informally represented by the Salt
River Project Agricultural Improvement and Power District (SRP)
and the Arizona Municipal Power Users' Association (AMPUA), had
conceptualized a five-state preference plan for marketing CRSP
power in November 1959. In this plan, they attempted to
recognize both the USBR's and Upper Basin preference customers'
objectives:

to get the earliest possible revenues;

to give proper consideration to Upper
Basin preference customers' needs;

to provide for optimum firm power
output from the river by adequate
interchange of Upper and Lower Basin
power systems;

to integrate the system wherever
reasonably possible;

to acauire a permanent allocation for
Arizona;

to protect Hoover-Parker-Davis./3?

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A major Bureau-built transmission inter tie between Glen
Canyon Dam and the Parker-Davis system was an absolute necessity
if Arizona preference customers were to absorb the surplus CRSP
power as soon as it was available, thus maximizing power
revenues. At the same time, Arizona preference customers
recognized the need to seek agreements with the USBR and Upper
Basin rreference customers for a permanent allocation of some
CRSP power for Arizona, rather than pursuing a unilateral
effort.138

~egotiating a Compromise

Pr~ference customers in both regions realized that their
mutual cooperation was the key to convincing the Secretary and
Congress to build an all-federal transmission system designed to
provide major market lines and basin-wide interconnection of
~ower systems. In this way, the five-state preference customer
market area (Arizona, Colorado, New Mexico, Utah and W~ominq)
would be atle to not only purchase all eRSP power prod~c~d, -at
f~~m ~rices, but would also be able cO utilize seasonel
diverEit~. In addition, a five-state oreference customer market
woul~ ~f~ectively doom the investo~-0wned utillties' ~la~,

!~e Upper Basi~ states agree~ ~o the five-state market
cor.::';:':::'': :n which Arizona p(efe[enc~ cdstom-=[s .....oule !-'urCll.3.3-=

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