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","- . "~ C" t,_.' .:;> ~h*, ~ ....~ ~ effeet of a localized water shortage will be minimized, One such intereonnec~ tion~~ a power line from Greeley to the Bureau's Seminoe power plant, southwest of Casper, Wyoming -- already has been built, and interconnections with proposed transmountain diversion projects south of here are planned for future construc- tion. Roulston: Now, Mr, Read, how will you charge for the energy distri~ buted over these lines? That is, what rates will apply? Read: The charge for the energy will depend upon the type of energy furnished, Mr, Lindseth has mentioned that the annual output of this project will be 750 million kilowatt~hours. Of this total, approximately 600 million would be firm energy, that is, energy available at all times ~~ even in the most adverse water. years -- and the balance of 150 million kilowatt~hours would be secondary energy, or that energy which would be available only during certain periods of each year, or during years in which the water flow exceeded the most adverse year,. Firm power and energy now is being sold under interim rates which average 7.1 mills per kilowatt-hour for the usual type of wholesale consumer, For secondary energ~ the rate per kilowatt~hour averages about 4,3 mills per kilowatt-hour. Both firm and secondary rate schedules are of the type which give a dect;easing cost per kilowatt-hour as the consumption of energy increases. Further, sinc.e the Bureau no,'uul11y desires to serve its wholesale custo~ers over Bureau ownedfacilitfes, the rates I have quoted contain a component to cover the cost of delivering energy to the customer at the service voltage he may desire. Moreover, it should be remembered that our present rates while considerably lower than those of other power producers in the area, are interim rates, and will, no doubt be revised downward at such time as the final costs of the project are determined. . Roulston: Mr, Lindseth, who is eligible to purchase power generated on the Golorado-Big Thompson Project? , , o Lindseth: Generally speaking, any wholesale user will be a.ble to purchas,e power from the Bureau, providing the magnItude of the prospective customer's power load will justify the installation of service facilities. However, the reclamation law does provide that preference in power sales be given to municipSlities, REA cooperatives and other public bodies, This does not mean that prhf..ate utilities will be precluded from purchasing power from the Bureau, . . but that the requirements of the preferred customers I have listed must be met before we can enter into agreements to sell power to customers not in the preference class. ~ J o . . o ~ . . c . Roulston: Gentlemen, I have the feeling that there is general misunder- standing as to the method of repayment of the cost of the Colorado-Big Thompson Project. I understand that the project will not be paid for by the taxpayers of the United States, but will be repaid to the Treasury by power revenues. Could you enlighten'me a little more on this subject, Mr, Read? ~ 19 -