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<br />142
<br />
<br />PUBLIC LAND LAW REVIEW
<br />
<br />[Vol. 15
<br />
<br />1994] .
<br />
<br />GRAND CANYON PROTECTION ACT
<br />
<br />143
<br />
<br />Power Admin., No. CIV.C86-1000G. !988 WL 167244, at *7-9 (D. Utah Apr. 14, 1988).aJTd, 926
<br />F.ld 974 (10th Cit. 1991).
<br />44. WESTERN REPQRT,SUpro. note 43, at 3. Firm power is defined as "power which isguaranteed
<br />to be available at all times." Western Area Power Admin., 926 F.ld at 979 n.4.
<br />45. 43 U.s.C. S 48Sh(c) (1988); see also. Wistern Area Power Admin., 926 F.ld at 977.
<br />46. 43 U.s.C. g 4SSh(c).
<br />47. 43 U.S.c. Ii 485h(c).
<br />48. The five areas are Billings, Phoenix, Loveland, Sacramenta, and Salt Lake City. Western's
<br />main headquarters is located in Golden, Colorado. WESTERN POWER ADMINISTRATION. ENERGY
<br />PUNNING AND MANAGEMENT UPDATE 1 (Mar. 1994).
<br />49. WESTERN REPORT,supra note 43, at 3. ,
<br />SO. CAROTHERS&Bll.oWN,supranote29.at 178;43U.5.C.! 62Od;42U.5.C.! 7152(1).The
<br />irrigation projects to be paid Corby the power generation facilities include the Dolores Project in
<br />Southern Colorado, the San Juan-Chama Project in New Mellico. the Seedskadee Project in
<br />Wyoming, and the Central Utah Project. Jim Bishop,A Water-based ElectriC Empire is Hitbya Flood
<br />of Criticism, HIGH COUNTRY NEWS, July 13, 1992, at, 10.
<br />51. C.loROTHERS & BROWN, supra note 29, at 183. Overall, the total federal investment in
<br />Western's power system is about $5 billion, of whicb approximately 42% had been repaid by 1989.
<br />WESTERN REPORT, supra note 43, at 6.
<br />52. CAROTHERS & BROwN,supra note 29.at 180-81. As of March 25.1993.G1enCanyon Dam
<br />had generated approximately $993 miltion in ,revenues since it was put into service. 'Author's tour or
<br />Glen Canyon Dam. Mar. 25, 1993.
<br />
<br />C. Dam Operations and the Glen Canyon Environmental Studies
<br />
<br />1.:.... J~as!s Jqr'..o~rt{t~(~ns.' at<fi~e1:l. :Ctlfiyon Dam,.:
<br />
<br />In theory, operations at Glen Canyon Dam are simple: the BOR
<br />determines the total amount of water to be released each month and year,
<br />and Western controls real-time releases subject to this plan.53 In other
<br />words, the BOR is ultimately in charge. Its plan for dam operation has
<br />traditionally been governed by four criteria; (1) the annual release of
<br />approximately 8.23 maf of water as required by the 1922 Compact; (2) a
<br />monthly release schedule that satisfies the annual goal while still meeting
<br />water delivery commitments and avoidirlg spills (flows exceeding power-
<br />plant capacity); (3) the maximum amount of water that can be released at
<br />any given instant through the dam; and (4) an informal agreement with t.he
<br />National Park Service calling for specified minimum releases during the
<br />recreation and non-recreation seasons (3,000 and 1,000 cubic feet per'
<br />second (cfs) respectively before 1991).54 BOR enjoys tremendous flexibil-.
<br />ity in determining releases. Monthly releases are not strictly governed by
<br />seasonal irrigation patterns in the lower Colorado basin because the BOR
<br />uses Lake Mead to regulate these variations, 55
<br />Having wide leeway in how it dictates real-time releases, Western has
<br />utilized Glen Canyon Dam as a tool to meet peak power demands
<br />efficiently.lIe This means restricting flows at night and in the early morning
<br />and increasing them during the day (typically 8 a.m. to 5 p.m.). Western
<br />sells the electricity to its preferred customers at cost. ~'t Excess peak.power
<br />that is not needed to satisfy firm customers is sold on the so-called "spot
<br />market" at true market prices.ll' This mode of operation results in huge
<br />daily fluctuations in the flow of water through Glen Canyon Dam, ranging
<br />from 1,000 cfs to 31,000 cfs."
<br />
<br />primary responsibility and focus is the sale of firm power and energy."" The
<br />basic statute governing power marketing is section 9( c) of the Reclamation
<br />Project Act of 1939.,(5 Specifically, this section provides that in the sale of
<br />federal hydroelectric power, "preference shaU~~~:given,to ~unicipalities
<br />a.nd ot.her p. ~b.liC ~.o.r.po... '..at....ion.s. or ~~. ci.e.'~':.;'~.~iYj.'d\~'!&M~P,I~~~~.,~.t.!~4l....m.".~HP~f.,~U.:";'~c
<br />~~:rn'ha~~;1~.,secttO.~'81ymgpr~ferenceoI1tytoihose j'
<br />tfiat~~6~~eir own utility sy~tetnS:':"7' ':},f . '
<br />Pursuant to its authority, Western divided into five areas, each with
<br />marketing authority based roughly on one of the five major river basins
<br />from which federal power is generated}' The organization operates over
<br />16,554 miles of transmission lines and 259 substations, serving over 600
<br />wholesale power customers in 15 central and western states}' Western
<br />uses the revenues it collects to repay construction, maintenance, and
<br />operating costs of the power and irrigation projects authorized by CR-
<br />SPA.50 The total investment in these projects is approximately $1.5
<br />billion.51 Glen Canyon Dam is Western's primary money-maker, and as
<br />such is the centerpiece of its operations. This facility alone generates
<br />approximately 10% of Western's total kilowatt-hours, and more than
<br />70 % of all federal hydropower produced in the Rocky Mountain region. 52
<br />As these numbers suggest, any disruption of hydroelectric operations at
<br />Glen Canyon Dam significantly affects Western's operations and
<br />obligations.
<br />
<br />53. GCES COMMITTEE. supra note 8, at 211. "Real time" releases are those made minute to
<br />minute hased on actual demands plaeedon the power system.
<br />54. CAROTHERS & BROWN, supra note 29. at 177-78. The monthly release schedule is also
<br />dependent on the BOR's goal of having water storage in Lake Powell at 22 maf on January I of each
<br />year and 27 maf{considered full) by Ju]y l.ld. at 177.
<br />55. GCES COMMITTEE, supra note 8. at 213.
<br />56. Stt supra notes 34.37 and accompanying text.
<br />57. WESTERN REPORT, supra note 43, at 5. Western contends that selling "firm power" at cost
<br />provides "significant economic: benefits throughout our 15:state region:'ld.
<br />58. Bishop, supra note SO, at 10. Obtaining a premium price on ellcess peak p'.>Wer allows
<br />Western to keep prices about 60% below market for its 600 preferred customers. [d. The "spot
<br />market" is one where utilities connected to Western's power grid can purchase excess power on short
<br />notWe as needed. Id.
<br />59. Bishop, supra note SO. at 10.
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