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<br />We are one organization doing a lot of worrying about who is <br />going to control the power, how that control will affect the ability of <br />the Upper Basin States to construct water projects, and the price we <br />are going to pay for the power. <br /> <br />I <br />I <br />I <br />I <br />! <br />I <br />.. ! <br />I <br />i <br /> <br />As you know, the Colorado River Storage Project Act (Public <br />Law 485) provided for the comprehensive development of the water re- <br />sources of the Upper Colorado River Basin" for the purposes, among <br />others, of... <br /> <br />(A) Regulating the flow of the Colorado River. <br /> <br />(B) Storing of water for beneficial consumptive U6e. <br /> <br />(C) Providing for the reclamation of arid and semi-arid land. <br /> <br />(B) Careful studies indicate that preference customers in the <br />market area are capable of providing for the earliest re- <br />payment of the project through; purchases of all of its power <br />output as soon as it is availabl~ - -and at firm prices for firm <br />power, <br /> <br />, <br />I <br />,I <br /> <br />I <br />I <br />II <br />i 1 <br />I <br />I <br />I <br />I <br /> <br />I <br />I <br />I <br />I <br />.1 <br />j <br /> <br />..~ <br /> <br />(D) Controlling floods. <br /> <br />(E) Generating Hydroelectric Power. <br /> <br />We also know: <br /> <br />(A) Earliest possible power revenues are essential because of <br />heavy initial investment costs,i and the need for over one <br />billion dollars worth of assista;nce to upper basin water <br />projects - -with 89 per cent of the whole project to be paid <br />for by power revenues--BUT! <br /> <br />Repayment ability of the project is thus within our grasp, includ- <br />ing repayment of construction costs of partidpating projects, but many <br />vital participating projects can go down the drain if we don't get the right <br />kind of a transportation system for marketing storage project power. <br /> <br />I hope to bring home to you why this: statement is important to you. <br /> <br />The Bureau of Reclamation in its 50 'year record in the hydroelec- <br />tric field, with only two or three minor and insignificant exceptions, has <br />always constructed and operated the transm.ission system necessary to <br />carry its power output to market load centers. This same procedure was <br />clearly indicated as one to be followed in Public Law 485 which authorized <br />the Colorado River Storage Project. <br /> <br />I <br />I <br />) <br /> <br />- 4 - <br /> <br />1 <br />II <br />