BOARD01326

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

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Senate, the cost to the federal government
would be about $100 million or a decrease of
$400 million, a very attractive savings as far
as Congress is concerned. The Secretary would
not construct or operate these thermal plants.
It is proposed that a combination of five com-
panies, consisting of the Southern California
Edison, the Arizona Public Service Company, the
Tucson Gas and Electric, the El Paso Electric
and the Salt River Project Association, would
construct the plant. Actually, they say they
are going to construct a plant any way and they
are already getting invitations for bids on a
major thermal plant, although they have not
decided definitely on its location.

By this arrangement they would put an
extra unit in their plant, a large unit, a 750
megawatt unit, and the Secretary would acquire
a 400 megawatt interest in this plant so that
it would always be available, be the first
call, to satisfy the pumping requirements of
the Central Arizona Project. The Secretary
would pay a pro rata cost of the plant for this,
prorated among all of the users, and a pro. rata
cost of the operation. The plant would actually
be operated by the Arizona Public Service Com-
pany and the charge to the federal government
for the power would be based upon the pro rata
operating costs. The utilities say they could
not supply the requirements of the Central Ari-
zona Project at the load center at less than
six mills per kilowatt hour. By this scheme
they say they can supply power at from three to
three and one-quarter mills, which is a great
savings on the long-term operation of the Central
Arizona Project.

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That, again, was the substitute for the
Hualapai Dam and that's the basic change as
far as the power features are concerned.

In our draft of the bill we have required
that the Secretary review the power features
again to perhaps include Mojave or any other