BOARD01326

• Board Meeting Date: 12/13/1967
• Description: Agenda or Table of Contents, Minutes, Memos
• Board Meetings - Doc Type: Meeting

..JUL.L.

MR. BERTHELSON:

MR. SPARKS:

part of the intertie. This intertie will pr'Oduce
revenues in excess 'Of its cast, if the same charge
f'Or the services is cantinued ta be made. The
intertie will nat produce nearly as much revenue
as Hualapai."

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"How much?"

"It produces samething araund $200 milli'On
whereas Hualapai would have produced in excess
of $500 million.

As a further substitute, which is not in-
cluded in the Senate bill, the Department 'Of
Interior has been making some studies t'O deter-
mine whether 'Or not 'Other p'Ower features could
be c'Onstructed below H'Oover Dam, such as pump
back starage fr'Om Lake Mojave, Havasu 'Or same of
the existing works down there. I understand they
have came up with some pramising results ta throw
other features in here which would further augment
the fund. Let me say that the fund as n'Ow
planned by the Senate bill would am'Ount to an
accumulation by the year 2050 'Of $1,200,000,000,
as contrasted ta the 'Original bill with Hualapai
and Marble which wauld have pr'Oduced approxi-
mately $2 billion. To date there has been a
decrease in the prajected revenues, surplus
revenues, of $800 million by the elimination
of beth Hualapai and Marble Canyen Dams.

The central Ariz'Ona Pr'Oject requires a
cansiderable amaunt 'Of power and energy t'O
operate and Hualapai was ta be the primary
s'Ource 'Of energy for that project. Se some
substitute far pawer, purely far pumping pur-
poses, had ta be found. The Senate prop'Osed
that the Secretary enter into an agreement with
nenfederal entities ta prepay a part 'Of the
capacity in their systems. This is a novel
arrangement, but yau will recall that the actual
cest ta the federal g'Overnment 'Of Hualapai and
Bridge Canyon was in excess of $500 million.
By this arrangement that is now proposed by the

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