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<br />Let's go back to our three choices--You can: <br /> <br />(1) Accept the all-Bureau transmission system <br />as the plan resulting in the lowest cost to the <br />power consumer and at the same time produc- <br />ing the greatest net revenue for irrigation assist- <br />ance. Clearly this is the only logical and accept- <br />able alternate. <br /> <br />(2) Accept the Utilities combination system complete <br />with its built -in disadvantages of drastically reduced <br />funds for irrigation assistance and substantially <br />increased power costs, or <br /> <br />(3) <br /> <br />Accept the Utilities combination system and make <br />ready to pay added costs for power sufficient to <br />restore dollars fora full program of participating <br />projects. <br /> <br />CHAR T XII <br /> <br />In summation, here graphically is a comparison between the all- <br />Bureau and the Utilities' proposed combination system. The left hand bar <br />represents total transmission costs includ:ed in the delivered price for <br />storage project power over the all-federal, system--l. 66 mills per kilo- <br />watt hour (based on our latest analysis of iNovember 15, 1960). <br /> <br />This all-federal transmission system alone will also produce, as <br />we have said before, some 389 million dollars in irrigation assistance, -- <br />,almost four million dollars a year. To be comparable, the combination <br />system must also produce the same amount of irrigation assistance. So <br />the height of the right hand bar must consist then of the 389 million dollars of <br />irrigation assistance, the operation, main;tenance, replacement and amor- <br />tization costs of the federal investment in 'the combination system, and, on <br />top, the Utility wheeling charges. Thus w:e conclude-oil irrigation assist- <br />ance is not to be effected as to ,quantity and timing, preference customers <br />will pay an extra 0.87 mills for each kilowatt hour generated by the storage <br />project. With a total estimated delivered ,cost of storage project power <br />over the all-federal transmission system of 6 mills per kilowatt hour, the <br />total delivered cost over the combination eystem would amount to 6.87 mills <br />per kilowatt hour. In terms of total dolla,s, storage project power cus- <br />tomers would pay an extra four million, n~ne hundred and twenty thousand <br />dollars a year for the privilege of receiving their power from the Utilities' <br />system. <br /> <br />- 10 - <br /> <br />.1 <br /> <br />, I <br /> <br />. <br /> <br />I <br />.I <br />I <br /> <br />I <br />'re <br /> <br />J <br />i <br />i <br />