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BOARD00930
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Last modified
8/16/2009 2:55:26 PM
Creation date
10/4/2006 6:45:56 AM
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Board Meetings
Board Meeting Date
5/10/1961
Description
Minutes
Board Meetings - Doc Type
Meeting
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<br />~.j1j:J <br /> <br />4. Through reduction of heavy ttansmission <br />line losses which are inherent with the <br />all-federal system, $76 million of addi- <br />tional revenue is returned to the project <br />during the 86-year period. <br /> <br />I <br /> <br />5. Finally, and most importantly, the savings <br />to the Bureau with the acceptance of the <br />utilities proposed joint system would be <br />more than enough to pay the wheeling <br />charges and the cost of power or rate <br />charged to the ultimate customers would <br />not be increased. In other words, the <br />preference customers would pay a 6 mill <br />rate under either plan. <br /> <br />Over and a~ove all of these advantages, and <br />not inc~uded in the exhibit, is the important con- <br />sideration of tax support which will accrue to <br />all levels of government. The Federal Income Tax <br />that will be paid by the five investor-owned <br />utilities durinq the 86-year period on revenues <br />derived from transporting project power will be <br />$96 million. Public Service Company of Colorado's <br />share of these taxes amounts to $17 million. In <br />addition, to provide adequate capacity through <br />the years to transport project power the investor- <br />owned utilities will accelerate their transmis- <br />sion construction programs and in so doing addi- <br />tional state and local taxes are generated at an <br />earlier date. In Colorado this amounts to $14 . <br />million in additional state and local taxes. <br /> <br />I <br /> <br />One other item is the matter of this ques- <br />tion of interconnection associated with the proj- <br />ect and the enhancement offered in reliability <br />and continuity of service to the ultimate custom- <br />er. We like to look at our ten years of opera- <br />tion in the Colorado-Big Thompson Project as being <br />most pleasant. We are, of course, interconnected <br />because we are interposing the transmission sys- <br />tem to help in the marketing. We have found, <br />over the ten-year period, that because of project <br />energy deficiencies - and this is all a function <br />of water available - Colorado-Big Thompson has <br />purchased from us, after their pumping require- <br />ment, as much as 25% per year of the energy which <br />they supply to their ultimate customers. <br />
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