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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />14 <br /> <br />additional revenues. and thb posllibil1ty appears to have been ccmatdered by tbe <br /> <br /> <br />utilities in tHeir wbeelinz offers. Since ~y such additional revenues are not <br /> <br /> <br />expected to result in lower utility wheeling charges in the futu~e. it is only <br /> <br /> <br />fair and reasonable in the cale of the al1~federal system to show such revenues <br /> <br /> <br />as .. additional benefit. This benefit would then serve to reduce Project power <br /> <br /> <br />costs to preference users, thus adding to the previously developed differential <br /> <br /> <br />of $492 million in favor of the all-federal system. <br /> <br /> <br />Obviously, the dollar amounts of such additional benefits are difficult to <br /> <br /> <br />establish at this time, since detailed design work to be based on expected <br /> <br /> <br />future conditions has not been performed and not even relative system losses <br /> <br /> <br />can be compared. However, one major example of such a benefit may serve to <br /> <br /> <br />illustrate the magnitude. With an all-federal system. the Bureau, by displacement. <br /> <br /> <br />will be wheeling energy from the Arizona Public Service Company Four Corners plant <br /> <br /> <br />to Phoenix. Arizona Public Service Company quoted a wheeling charge to the <br /> <br />Bureau last April for displacement of Glen Canyon energy at Four Corners. Since <br /> <br />preference customers in and beyond .the Four Corners area physically receive their <br /> <br />power and energy requirements from the Four Corners plant. then. conversely, the <br /> <br />Bureau with an all-federal system must wheel for the benefit of Arizona Public <br />Service Company a like amount of energy to the Phoenix area from Glen Canyon. <br /> <br />Taking the same view apparently applied by that utility, a credit recogniz- <br />ing this displacement has been determined for the all-federal system in the form <br />of wheeling revenue, at one mill per kwh. as a meaSure of benefits to the. utili- <br /> <br /> <br />ties of interconnection at Four Corners and Gl~ Canyon. The effect of this one <br /> <br /> <br />possibility is to provide some $167 million13 of added revenUe during the study <br /> <br /> <br />period. Together with the differential of $492 million already determined. the <br /> <br /> <br />economic advantage to power users is thus increased to $659 million. Other <br /> <br />13 <br />See Table lIA. <br />