BOARD01700

• Board Meeting Date: 9/22/1961
• Description: Minutes and Resolution
• Board Meetings - Doc Type: Meeting

LOtlL

On the other hand, there are cases when
there may be a joint use of a line, when the
total capacity is not needed for project power.
In such cases we feel that the investor utili-
ties can compete with the federal government on
that basis. And that was generally the criteria ,I
that we pointed out to our Congressmen and our
Senators on our recent trip to Washington during
the debate on the transmission system. We have
talked to our own Public Service Company of
Colorado on that point and they are willing to
sit down and work with us on a basis of some-
thing like that.

Specifically I would like to point out
areas where we think some great work must be
done. (Mr. Sparks used two large charts to
illustrate his points.) At the present time
there is a controversy in the Congress pertain-
ing to certain lines - so-called controversial
lines. We feel that there is some merit in
looking into certain of those lines. This one
line from Glen Canyon - one line only - to
Phoenix, we say there is no point in looking
into further. That must be immediately con-
structed by the federal government. The second
line, yes. There is a strong possibility, we
believe. that that line can be and should be
constructed by the Arizona Public Service Com-
pany.

There are factors in this system, I'll give
you one specific example. From poncha to Midway,
the proposed federal line, the power flows will
not be enough to utilize the full capacity of
that line until about 1970. From 1970 then the
230-kv line that is planned in there will be
completely utilized by our project power. At
that time we say a federal line should go in. I'
But until 1970, or sometime thereafter, we be-
lieve it is advantageous to enter into a wheeling
contract with the Public Service Company of
Colorado. It's cheaper for the project to do
that because when you have a large investment
on which you are not getting a full return
immediately, you are losing money-. So there
is a period of time, we feel, during which this