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<br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />"During the April subcoDmlittee hearings, the utilities' claimed <br />that, as a result of accepting their offers to wheel Project energy, some <br />$4 million would accrue to state and federal treasuries in the form <br />of added tax revenues. This statement cannot be even approximately <br />reconciled with the utility transmission system investment proposed, <br />expected revenues from utility wheeling offers, and past records of utility <br />financial operations as reported to the Federal Power COI1DDission." <br /> <br />"----past utility records of the Federal Power COI1DDission show <br />utilities in this area devote about 22% of their annual gross revenues to <br />federal and local taxes. Applying this percentage to the $8 million <br />wheeling revenues gives a total tax figure of only about $1.76 million <br />annually, or roughly $176 million for the 100 year period being studied." <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />"For the privilege, then, of paying less than $2 million of <br />taxes through power revenues instead of other means, consumers would be <br />asked to pay between $5 and $6 million more for power. The advantages <br />of the all-federal system thus far outweigh those of the combination <br />system even when tax differences are considered." <br /> <br />I <br /> <br />In summary, this report demonstrates conclusively that <br />the all-federal system: <br /> <br />1. Complies fully with all congressional and departmental <br />criteria and the authorizing legislation. <br /> <br />2. Provides tremendous economic superiority over the <br />system proposed by the utilities. <br /> <br />3. Safeguards the financial feasibility of participating <br />projects constructed under Public Law 485. <br /> <br />We, the preference customers in the five-state market <br />area established by you --- the customers for all storage project power <br />down through the years --- believe that our recoDmlendations and desires in <br />the matter of who builds the transmission system should control, as, in <br />the final analysis, we will pay, not only for these lines, but ahnost 90% <br />of the cost of the entire Storage Project. <br /> <br />Our unqualified recOl1DDendation is that the system be an all- <br />federal one, and that you so determine at the earliest possible date. <br /> <br />I <br />I <br />I <br />I <br />I <br /> <br />Yours very truly, <br /> <br />COLORADO RIVER BASIN CONSUMERS POWER, INC. <br /> <br />"n1~ ffZi- ~~ <br /> <br />Marion M. Wilson <br />President <br />