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

I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I

4

PRESENT STUDY

Since the August 1, 1960 report, the Bureau of Reclamation has formally
advised6 both the utilities and the CRBCP of estimated costs to the government
of the all-federal "yardstick" system and of the federal portion of the combin-
ation system. At the same time, the Arizona Public Service Company has firmed
its plans for the construction of its coal-fired plant in the Four Corners

area. Therefore, it is now proper that a modified "yardstick system" be con-

sidered in viewing the economy of the utilities' proposal. Integration of

major generation at Four Corners with the Storage Project system is a reality,

so investment and the cost of operation and losses associated with the system

proposed in the May 18 announcement are reduced. A similar and equally import-

ant savings is made by Arizona Public Service Company through the opportunity to

interconnect at Glen Canyon with the Storage Project system.

It must be emphasized here that these savings result whether the utilities'

proposal is accepted or not.

With this construction, a savings in facilities

can be made by both Arizona Public Service Company and the Bureau. The Bureau

will need less transmission capacity between Glen Canyon and Four Corners, and

the Company can reduce the number of transmission lines originally planned

between Four Corners and the Phoenix area.

Besides the Bureau's announcement of costs, the private utilities have

recently modified their April 1960 wheeling offers. In view of these latest

events, it is appropriate that the cost of the Bureau and the utility proposals

be studied thoroughly.

6
See appendix, pages x - xiv

!