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<br />'<4.;1:> <br /> <br />They start out with point 1: <br /> <br />I <br /> <br />'Minimum cost of transmission facilities <br />to be added to the Bureau of Reclamation's <br />estimate to the "yardstick" system costs <br />because of its inability to make power <br />deliveries under the Secretary of Interior's <br />power Marketing Criteria.' <br /> <br />In other words they say the Bureau has under <br />estimated the cost of their system by approxi- <br />mately $14 million. Now this is not correct, <br />gentlemen. That is not correct. The point <br />raised in that argument was included in the Bur- <br />eau's estimate of the cost. It was not identi- <br />fied as such but the lines that make up this <br />additional cost were included in the Bureau's <br />estimate. <br /> <br />On point 2, <br /> <br />'Although certain transmission lines would <br />be constructed by the Bureau of Reclamation <br />under either the "yardstick" system or the <br />Utilities' proposals, the Bureau used higher <br />costs for these facilities in evaluating the <br />Utilities' proposals than used for same <br />facilities in the "yardstick" system.' <br /> <br />I <br /> <br />In other words they are saying to the extent of <br />$5 million the Bureau used different price sys- <br />tems. Again, that is not correct. This allega- <br />tion comes about by virtue of the fact that the <br />two systems - the combined and the yardstick sys- <br />tems - are not identical. That is, they will not <br />cover identical territory. So if the all-federal <br />system is used a more direct approach can be made <br />to certain service points than if the other system <br />is used. You can cut corners and make more direct <br />approaches to the various marketing centers. Now <br />whether or not that will be done, we do not know, <br />but as far as the policy and the engineering com- <br />putations are concerned there is nothing wrong <br />with them. <br />