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<br />I <br /> <br />5 <br /> <br />I <br /> <br />ANALYSIS OF PRIVATE UTILITY WHEELING OFFERS <br /> <br />I <br /> <br />The Arizona Public Service Company on September 26, 1960, submitted <br />7 <br />a letter to Mr. F. M. Clinton, Region IV, Bureau of Reclamation from which <br /> <br />I <br /> <br />the following is quoted: <br /> <br />"Based on the August 31, 1960 schedule which we understand will be <br /> <br />I <br /> <br />used for making comparisons we' wish to quote for estimating purposes <br /> <br />the following wheeling charges for delivery of energy by transmission <br /> <br />I <br /> <br />line to the Phoenix area, plus energy delivered by displacement at <br /> <br />Four Corners. <br /> <br />I <br /> <br />(a) Per kilowatthour for all energy delivered 1.177 mills. <br /> <br />I <br /> <br />This rate is applicable to the total annual energy shown on <br />8 <br />Exhibit I as a minimum.. Energy wheeled above the minimum annual <br /> <br />I <br /> <br />quantity will be at no charge." <br /> <br />This means that the Company has proposed a flat charge based on energy shown <br /> <br />I <br /> <br />in its proposal, regardless of the actual kilowatthours of Project energy <br /> <br />I <br /> <br />wheeled in the State of Arizona. If Glen Canyon energy is withdrawn to the <br /> <br />Upper Basin at a faster rate than shown in the Bureau's August 31 load <br /> <br />I <br /> <br />schedule, preference users will pay a higher unit wheeling rate. <br /> <br />9 <br />The Public Service Company of Colorado also submitted a new letter <br /> <br />I <br /> <br />to Mr. F. M. Clinton, stating that: <br /> <br />I <br /> <br />"For purposes of your study we suggest that you use a wheeling <br /> <br />rate of 1 mill per kilowatthour plus 6% of power and energy to cover <br /> <br />I <br /> <br />losses." <br /> <br />It was stated in the earlier CRBCP report the average wheeling distance in the <br /> <br />I <br /> <br />State of Colorado is probably in the range of 50-100 miles, and we expected <br /> <br />I <br /> <br />7 See Appendix, page v <br /> <br /> <br />8 See Appendix, page viii <br /> <br /> <br />9 See Appendix, page ii <br /> <br />I <br /> <br />I <br />