BOARD00455

• Board Meeting Date: 9/7/1967
• Description: Agenda or Table of Contents, Minutes, Memos
• Board Meetings - Doc Type: Meeting

the 1970-7l winter totals. In addition to the
firm power contracts, there are 19 agreements
for sale of nonfirm energy in force.

1

fiIost of the firm contracts are \'Iith the
preference type-customers which are guaranteed
the delivery of the contract amounts for a
period of 20 years. Five of the customers are
nonpreference, such as the pacific power and
Light company, and these contracts are for
shorter terms, usually 5 years. ^t the end
of these short terms the contracts may be ex-
tended if the available power is not required
by preference customers.

Due to heavy summer loads in the Southern
Division, the preference customer market for
firm power is presently somewhat higher in the
summer than in the winter. The imbalance be-
tween summer and winter firm loads will phase
out as Northern Division loads come up to their
share of capability. In the meantime, \'Iinter
excess capacity will be used for Hoover de-
ficiencies, assistance to other projects, and
to permit correction of deficiencies inherent
in new units as they are added at Fontenelle,
Blue Mesa, fiIorrow point, Crystal, and Central
Utah.

1

Power revenues during the fiscal year 1967,
which ended June 30, were almost $l3.4 million,
a new high for a twelve-month period. Cumula-
tive revenue'~ for the 3-1/2 yearrl the storage
Project has been operating e::ceeded $28 million.
Revenues during fiscal year 1967 were more than
adequate to meet storage project O&M costs and
paid more than 85% of the annual interest
charge. I can report to you that progress on
Storage Project ma~,eting and revenue buildup
is satisfactory for the short period of power
operations and well within the project repay-
ment schedule to meet project overall commit-
ments during this buildup phase.

During the l2 months ended June 30, 1967,