Chapter 1: Summary of "The Law of the River"

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7 CHAPTER i 21 The most controversial of the principles was No. 5, which was that an allowance should be made for com- puted deficiency in firm energy generation at Hoover which might be caused by the four storage units in the Upper Basin; i.e., Glen Canyon, Flaming Gorge, Curecanti, and Navajo, but excluding the effects of evaporation from the surface of such reservoirs as a part of the theoretical streamflow used in the formula for computing allowance. (The initial draft considered only the presence of Glen Canyon on the river and was silent regarding evaporation losses.) The allowance for computed deficiencies in Hoover firm energy is the difference between two calcula- tions —the first in the so- called Hoover basic firm, which is the firm energy that would have been produced at Hoover without the four storage reservoirs on the river and using an overall efficiency factor for power opera- tions of 83 percent. The second calculation would be to adjust the energy actually generated at Hoover to an efficiency factor of 83 percent (rather than 70 -78 percent efficiency actually experienced) . The Secretary would determine how the allowance would be accomplished; i.e., (1) monetarily, if the in- cremental cost, that is, fuel replacement cost of generating substitute energy, is less than the selling rate for power from the Upper Basin projects, or (2) whether it might be well to compensate the Hoover Dam power contractors with kilowatt hours through the interconnection of the two power systems. This principle, in particular, was vigorously attacked by the Upper Basin States as without legal basis and as implying a responsibility on the Upper Basin for energy deficiencies at Hoover which they denied. However, Principle No. 5 made provision for reimbursing the Upper Basin Fund after 1987 from Hoover Dam power revenues for purchasing power to meet Hoover deficiencies, but not for nonfirm or other energy from the storage project's powerplants. Interior's intention to secure reimbursement was reflected in an Additional Regulation No. 1 to the General Regulations for Generation and Sale of Power in accordance with the Boulder Canyon Project Adjustment Act, adopted by Secretary Udall on July 12, 1962, 27 F.R. 6850, which stated that the rates to be charged for electric energy after 1987 would include a component to return } to the United States funds adequate to reimburse the Upper Basin Fund. No interest would be included in the reimbursement. Reclamation indicated its intention to make minimum use of dollars and maximum use of energy from Federal powerplants, but not firm energy which would otherwise be sold at firm power rates. The principles would be applicable during the filling period, defined as the time required to fill Glen Can- yon (elevation 3700), with a cutoff date of May 31, 1987, the date when the Hoover power contracts expire. Provision was also made for earlier termination if conditions warranted and called for consultation with the States before such action. During the filling period, uses of water below Hoover Dam, other than power, will be satisfied, including - delivery of not more than 1.5 maf /yr to Mexico. Minimum power head (elevation 3490 - 6.1 maf available surface storage) would be sought at Glen Can- yon at the earliest practicable time without drawing Lake Mead below its rated head (elevation 1123 - 14.5 maf available surface storage) . The partial closure of Glen Canyon Dam was accomplished March 31, 1963, when computation of Hoover deficiencies began, at which time Lake Mead held 22.3 maf. This dropped to 15.4 maf at the end of January 1964. Lake Powell was about 3410 (80 feet short of the minimum power point of 3490) . With the forecast of another poor runoff in 1964 the gates of Glen Canyon were ordered opened on March 26, 1964, by the Secretary to maintain elevation 1123 at Lake Mead, despite Upper Basin requests that water be re- tained in Lake Powell in order to start generation of energy by August 1, 1964. However, 6 weeks after the gates were opened, on May 11, 1964, the Secretary announced the closure of the gates at Glen Canyon and the modification of the 1962 Filling Criteria to reduce by 40 feet, from eleva- tion 1123 (rated power head) to elevation 1083 (minimum power pool), the water level below which Lake Mead would not be drawn. This was conditioned on the fact that, in addition to the allowance for deficiencies in firm energy pursuant to the 1962 Filling Criteria, the United States would replace impairments in Hoover Powerplant capacity and energy which result from lowering Lake Mead below. elevation 1123 by reason of storage of water in Lake Powell, and would also relieve the allottees of the costs of extraordinary maintenance of the turbines and generators resulting from such lowering. These costs would be charged to the.Upper Basin Fund but were not subject to reimbursement as was the case for deficiencies in firm energy as / determined pursuant to the 1962 Filling Criteria.