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<br /> <br />. <br /> <br />The Bureau of Reclamation's decision to contract with private utility <br />companies instead of construct its own power faciliti~s reflects the <br />following factors: <br /> <br />l. The utility companies assured the government that project needs could <br />be met. <br /> <br />2. The underlying philosophy of the American system is that private sector <br />development is apt to be more efficient than direct government action. <br />A choice was seen between the government building its own power system <br />versus acquiring the necessary power from the private sector. Under <br />the American system, there is a strong bias in favor of the private <br />sector option. <br /> <br />3. If the government built the system, it could only be used for providing <br />power for the Project. Contracting with the utility companies means <br />that the transmission system will be the property of those companies <br />and that serv?ce can be provided to private individuals. The approximately <br />150 miles of new transmission lines can provide electrical service <br />to a large area which is now without easy access to existing utility <br />lines. A number of individuals should benefit from this directly. <br /> <br />The Project power delivery system will be built by and remain the property <br />of the utility companies. However, the federal government does retain <br />some control of the form the system will take. This control is mostly <br />related to environmental concerns. For instance, the system will have <br />a mix of above and below ground power lines. This is to reduce visual <br />impact. The above ground parts of the system will be designed to reduce <br />the possibility of wildfowl injuries. <br /> <br />The Bureau will contract with the utility companies and will pay for the <br />cost of the power distribution system. This will be done in about the <br />same way that a private individual in a remote area would get electrical <br />service. The funds which were originally allocated for the government's <br />own system will cover the costs of contracting with the utility companies. <br />The goverment will pay for the project system directly. The costs of the <br />project system will not be "tacked on" to the utility bills of the general <br />public. <br /> <br />"',8"10 <br />r". V <br />\.,'V \." <br /> <br />2 <br />