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<br />r ~ ro ra~~Wh n <br />'~ ,. JUN131384 U <br />"I, _ <br />- COLOR!\.DO WATl:.R <br />CO",SER\!AT:CN BOARD <br /> <br />OD3?3: <br /> <br />D <br /> <br />) I.) <br />L(. r/~. <br /> <br />THE ULTIMATE DEVELOPMENT CONCEPT <br />(OR \iHO RULES RECLAMATION?) <br /> <br />Remarks of Edward Weinberg* before the National Water Resources <br /> <br />Association Federal Water Seminar, Washington, D.C.~ April 6, <br />1983. <br /> <br />In August of 1977, Congress established the Department <br />of Energy. In so doing, it transferred from the Interior <br /> <br />Department to the new department the power marketing functions of <br /> <br />the Bureau of Reclamation. Ten months later, in July of 1978, <br /> <br />what is now the Inspector General of the Department of the <br /> <br /> <br />Interior (at that time known as the "Office of Audits and Inves- <br /> <br />tigation"), in an audit report on the Pick-Sloan Missouri Basin <br /> <br />Program, questioned the continued use of what the auditors <br /> <br /> <br />desoribed as the "ulti~ate developmen~ concept" in making payout <br /> <br /> <br />studies and cost allocations for determining power rates. <br /> <br /> <br />These two events precipitated a controversy which has <br /> <br /> <br />risen in intensity and continues today. That controversy has <br /> <br />involved, on the federal level, the Bureau of Reclamation, the <br /> <br />Western Area Power Administration (Western is the unit of the <br /> <br />Department of Energy which markets power produced at Bureau <br /> <br />* Mr. weinberg is a principal in the washington, D.C. law firm <br />of Duncan, Weinberg & Miller, P.C.. Mr. Weinberg left the <br />federal government in late 1969 after a long.career in the <br />Bureau of Reclamation and the Department of the Interior. He <br />was, successively, an attorney and later Assistant Chief <br />Counsel of the Bureau of Reclamation (1944-1953): Assistant <br />Solicitor, Power (l953-l961): Associate Solicitor, Water and <br />Power (1961-1963): Deputy Solicitor (1963-1968): the <br />Solicitor (l968-l969). <br />