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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13

taxes. Applying this percentage to the $8 million wheeling revenues gives a
total tax figure of only about $1.76 million annually, or roughly $176 million
for the 100-year period being studied.
It should come as no surprise to find that this last figure is quite con-
sistent with earlier conclusions above. For example. if wheeling revenues are

so low as to develop no income taxable by the federal government -- a possibil-

ity shown above the utilities' $4 million figure would drop to less than
$2 million. If we take the second and almost unconceivable position that only
$66 million in utility investment is actually devoted to wheeling service
even though normal fixed charges are earned -- the same order of figure for

taxes can be obtained. It can thus be concluded the utilities' claims as to

taxes are quite unrealistic.

For the privilege, then. of paying less than $2 million of taxes through
power revenues instead of other means, consumers would be asked to pay a,bout

$5 million more for power. The advantages of the all-federal system thus far

outweight those of the combination system even when tax differences are con-

sidered.

ADDITIONAL REVENUE BENEFITS WITH ALL-FEDERAL SYSTEM

In any transmission system built for the Storage Project, there will be

times when there is excess capacity for the interchange of energy. There will

be opportunities, especially in the more distant future, for the seasonal

interchange of capacity and for wheeling firm power in addition to Storage

Project output. And, also, there will be displacements of power over such

a giant power grid, which will result in economies not only for the Storage

Project but for all systems which its transmission lines interconnect.

Any or all of these other uses for this transmission system are bases for