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<br />''It must be emphasized here that these savings result whether <br />the Utilities" proposal is accepted or not, <br /> <br />, I <br /> <br />"The attached report treats rather extensively the <br />federal and local tax revenues under the utility proposal. <br />quote here only three short excerpts: <br /> <br />impact on <br />I wish to <br /> <br />'During the April Subcommittee 'hearings, the <br />Utilities claimed that, , as a re sult of accepting <br />their offers to wheel project energy,' some $4 million <br />would accrue to state and federal treasuries in the <br />form of added tax revenues. This statement cannot <br />be even approximately reconciled with the Utility <br />transmission system investment pro'posed, expected <br />revenues from Utility wheeling offers, and past re- <br />cords of Utility financial operations :as reported to <br />the Federal Power Commission.' <br /> <br />'. . . Past Utility records of the Federal Power <br />Commission show utilities in this area devote about ZZo/. <br />of their annual gross revenues to federal, and local <br />taxes. Applying this percentage to the $8 million <br />wheeling revenues gives a total tax ~igure of only <br />about one million, seven hundred and sixty thousand <br />dollars annually, or roughly $176 million for the 100 <br />year period being studied, I <br /> <br />'For the privilege, then, of paying less than $Z <br />million of taxes through power reve\lues instead of other <br />means, consumers would be asked to pay between $5 and <br />$6 million more for power. The advantages of the all- <br />federal system thus far outweigh thcjse of the combina- <br />tion system even when tax differences are considered. I <br /> <br />"Our unqualified recommendation is that the system be an all- <br />federal one, and that you so determine at the earliest possible date." <br /> <br />I <br /> <br />Ladies and Gentlemen, the Secretary of the Interior's decision <br />as to who shall build the storage project transmission system is vital as <br />we have seen. If the Secretary recommend,s to the Congress that an all- <br />Bureau transmission be provided along the -lines of his "Yardstick" system, <br />water users, power users and all others under the economic influence of <br />the Colorado River will receive optimum benefit from this lifeline of the <br />Southwest. <br /> <br /> .: <br />- 1 Z - I <br /> , I <br /> I . <br /> I <br />