BOARD00930

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

I

select the one which provided the minimum cost.
Instead they elected to consider the proposal
for the all-federal analysis in both instances
which resulted in the maximum cost. And this one
item alone. gentlemen. amounts to $34.000,000 in
'loading' under the Bureau's analysis favoring
an all-federal system.

Further distortions occurred when the Bureau
used 2 mills per kilowatt hour for the Wyoming
system although informed by the Pacific Power and
Light Company that they had acquired the Southern
Wyoming Utilities system and the resultant wheel-
ing rates would be one mill for all power going
into wyoming from Flaming Gorge.

Under this second item of variance, there
were also discrepancies as to the power displaced
through the Public Service Company of Colorado
and the Utah Power and Light Company. In total.
this misapplication and misinterpretation of
wheeling rates produced $95 million of over-
charges in the period of study against the com-
bined system.

I

Under the third major variance. we will dis-
cuss the construction of the transmission lines.
This has been categorized, in the various con-
versations with the other parties, under two
definitions - the non-controversial lines or
those lines which the Bureau would build under
the utilities proposal; and the so-called con-
troversial lines. the additional lines which the
Bureau would construct under the all-federal
scheme. In the Bureau's analysis. operation and
maintenance of the Bureau's transmission facili-
ties for the non-controversial lines were stated
to be 2.29 percent of the investment per year.
However. the controversial lines required opera-
tion and maintenance costs of only .8 percent of
the investment. The Bureau. therefore. appears
to have assumed that operation and maintenance of
their transmission facilities would cost them
almost three times as much if the utilities pro-
posals were accepted than what the cost would be
under an all-federal system. The Bureau's con-
sultants were highly critical of this item and