BOARD00930

• Board Meeting Date: 5/10/1961
• Description: Minutes
• Board Meetings - Doc Type: Meeting

present and future facilities of the area without
duplication.

The plan was evolved through extensive util-
ization of computer equipment. It was interesting
to all of us in that it, perhaps, comprised one
of the most extensive studies of this nature
ever undertaken for electric systernplanning over I
such a broad five-state area. still later in
'59, all interested parties agreed to make a
joint transmission engineering study of the -
C.R.S.P. with delineation of ownership and cost
not to be considered. This study indicated also
that a transmission system similar to the one
proposed in October by the utilities would per-
haps be the optimum solution to the project power
marketing problem. Subsequently the five utili-
ties submitted firm wheeling rates for transport-
ing project power and energy over their portion
of the facilities in this plan.

Perhaps I should, at this point, explain the
term 'wheeling'. As used in this sense, it
applies to the charges made for transporting
electrical energy over the transmission facilities
of one supplier for another supplier. This type
of arrangement is not new. Public Service Com-
pany of Colorado has wheeled for the Big Thompson
Project and assisted in the marketing of its
power for the past ten years and just recently
a new wheeling service contract which provides
for continuation of this service for 15 years at
even lower rates, has been executed. There are
many other examples of such agreements through-
out the country and more specifically in the area
in which we are concerned. The Pacific Power and
Light has a wheeling contract with the Bureau for
delivery of Missouri River Basin power in the
State of Wyoming. Arizona Public Service Company
has wheeling contracts with Region 3 of the Bur-
eau; and Utah Power and Light performs similar I
services for Region 4. All of these wheeling .
arrangements have been very satisfactory and
have prevented the wasteful duplication of trans-
mission facilities.

Finally, as Ralph pointed out, in May, 1960,
the Secretary of Interior announced his criteria