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<br />The basic problem, therefore, becomes one of filling the upper <br />basin reservoirs at the earliest practicable time to reasonably high <br />operating levels so they can begin to produce the power revenues <br />required for repayment of their costs without disrupting the lower <br />basin economy which depends on Colorado River water for its strength. <br /> <br />The cooperative efforts of the va rious upper and lower basin <br />groups and the Bureau on the filling problem have been very helpful. <br /> <br />Great use was made of the cooperative studies in arriving at <br />a tentative set of "Proposed General Principles to Govern, and Oper-, <br />ating Criteria for Glen Canyon Reservoir and Lake Mead During the <br />Glen Canyon Reservoir Filling Period," approved by the Secretary <br />February 9, 1960. These proposed principles and criteria are based <br />on four major premises, namely: (1) Anticipated uses of water <br />(other than power) below Hoover Dam will be satisfied; (2) secondary <br />energy should not be generated at Hoover during the filling period; <br />(3) minimum power heads in the upper basin reservoirs should be ate <br />tained at the earliest practicable time; and (4) operation should be <br />such as to maximille combined energy generation at all Federal power- <br />plants on river. In addition, the proposed principles and criteria pro- <br />vide that an allowance be ma,de for any computed deficiency in firm <br />energy at Hoover Powerplant which might be caused by filling the stor- <br />age project reservoirs. <br /> <br />A final decision on these proposed principles and criteria has <br />not been reached. Comments by most of the interested parties have now <br />been received and consideration is being given to all aspects of the pro- <br />blem to determine if the proposed principles should be revised and if <br />so, the nature of the revision. <br /> <br />On October 1, 1959, six utilities presented to the Bureau a plan <br />whereby they would construct certain elements of the transmission system. <br /> <br />In essence this plan provides that the utilities would construct all <br />necessary transmission lines with the exception of a line, or lines, be- <br />tween Glen Canyon and Poncha Junction near Salida, Colorado, and from <br />Flaming Gorge to Vernal, Utah, and to Oak Creek, Colorado. Said <br />another way, the utilities would construct what amounts to all north-south <br />lines and the Government would construct what amounts to all east-west <br />lines except for certain lines in Colorado. The utilities followed up their <br />October 1, 1959, proposal in April 1960 by several letters which set forth <br />the charges which the utilities would make for use of the transmission <br />lines which they would construct under their physical plan, <br /> <br />- 21 - <br />