WSP10622

• File Number: 8220.100.50
• Description: CRSP - Power
• Basin: Colorado Mainstem
• Date: 11/15/1960
• Author: Engineering Comm.
• Title: Revenue Requirements of Colorado River Storage Project Transmission System
• Water Supply Pro - Doc Type: Publication

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offer. Therefore, the USBR has assumed a wheeling rate by each of these utili-

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ties of one mill per kilowatthour.

As pointed out in earlier reports, the utilities' offers are not firm.

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The offer of the Public Service Company of Colorado is still. in general. an

offer to discuss conditions under which a contract may be negotiated. The

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Utah Power & Light Company and Arizona Public Service Company are offering to

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wheel Project power over lines which are publicly declared to be primarily

available, among other things, to interchange diversity between their respec-

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tive systems. This interconnection is not of sufficient capacity to accomplish

even this primary purpose without the benefit of a Glen Canyon interconnection.

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The private utilities are subject to regulatory authority and their offers

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are "..,contingent upon obtaining the necessary approval of regulatory author-

ities having jurisdiction..." Once the utilities' offers are accepted and the

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necessary lines constructed. the regulatory authorities can disapprove the

proposed rates and declare higher charges to be applicable. The fact that

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wheeling revenues now asked by utilities appear quite inadequate for the

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investment offered makes this prospect of increased wheeling costs by regula-

tory action a serious threat for the future.

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ANALYSIS OF FEDERAL TRANSMISSION COSTS

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The supporting load and resource data used in this study were obtained from

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the Bureau of Reclamation. Region IV. These data are consistent with the

Secretary's May 18 announcement and are used as a basis for utility wheeling

charges. The basic investment cost of the"yardstick transmission system" in the

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Secretary's May 18 announcement was submitted by the Bureau of Reclamation in its

letter dated October 25. 1960 together with the Bureau's estimate of federal

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investment in the utilities' proposed combination federal-private system.

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See appendix. pages xv - xxi.

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