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<br />I <br /> <br />I <br /> <br />As Lake Mead reached its peak last July, Colorado River water was lap- <br />ping at the spillway crests at Hoover Dam, Today, the lake contains about 23 <br />million acre-feet, only about five million less than capacity. Runoff for the <br />1961-62 water year ending September 30 was over 15 million acre-feet, If we <br />can have a couple more years like that, the immediate problem on the filling <br />of Lake Powell behind Glen Canyon will be over, <br /> <br />I <br /> <br />I <br /> <br />Let me make it plain that under the filling criteria all uses of water <br />below Hoover Dam, other than power production, will be satisfied while the <br />Upper Basin reservoirs are filling, And an appropriate adjustment will be <br />made with the Hoover power contractors for deficiency in generation of "basic <br />firm energy" at the Hoover powerplant. <br /> <br />I <br /> <br />I <br /> <br />Needless to say, the hydropower production at the Flaming Gorge and <br />Glen Canyon powerplants will be coordinated with the Hoover powerplant op- <br />erations to produce the maximum amount of energy from these Federal hydro <br />giants, which is practicable and consistent with the filling of the Upper Basin <br />reservoi rs from the available and storable stream flows. <br /> <br />I <br /> <br />I <br /> <br />We are pleased with the conclusion of the transmission line controversy. <br />Benefits will accrue to all parties involved through the arrangements agreed <br />upon for construction of backbone lines by the Federal Government and for <br />interconnection and wheeling arrangements with other utilities. At the same <br />time, the rights and interests of the preference customers are fully protected, <br /> <br />I <br /> <br />I <br /> <br />Most important, however, is the fact that the magnitude of the power <br />revenues going into the Upper Colorado River Basin Fund will be greatly en- <br />hanced as compared to the previously considered proposals of the private <br />utilities. Accumulation of revenues in the Basin Fund would even exceed that <br />available by the construction of the proposed all-Federal yardstick system. At <br />the same time, all the purposes of the all-Federal system will be fulfilled, <br /> <br />I <br /> <br />I <br /> <br />Also of significance is the signing of interconnection and wheeling con- <br />tracts with both the Colorado-Ute Electric Association and the Salt River Power <br />District. These latter contracts provide that in exchange for delivery of power <br />and energy to the Bureau from the proposed preference customers' steam <br />plants at Hayden, Colorado and Shiprock, New Mexico, the Bureau will make <br />available an equal amount of power and energy to the Colorado-Ute and Salt River <br />utilities from the Bureau's hydroplants at Glen Canyon, Curecanti and Flaming <br />Gorge, <br /> <br />I <br /> <br />I <br />I <br /> <br />The installation of thermal generating capacity to be exchanged for ca- <br />pacity from Glen Canyon would need to be coordinated and integrated both as to <br />time and location with development of Storage Project powe'rplants and trans c <br />mission system if benefits to the United States and the Basin Fund are to be <br />realized. These savings would result from reduction of investment costs and <br />transmission facilities, savings in transmission losses and revenues from <br />wheeling charges for delivery of thermal capacity to preference customers <br />in the Southern Division. <br /> <br />I <br /> <br />I <br /> <br />When the entire program contemplated is accomplished in time and place <br />the total increase in the Basin Fund as a result of these savings is estimated to <br />amount to more than $100,000,000 over the 86-year period of payout analysis. <br /> <br />I <br /> <br />I <br /> <br />- 7 - <br />