BOARD01706

• Board Meeting Date: 8/2/1961
• Description: Table of Contents, Agenda and Minutes
• Board Meetings - Doc Type: Meeting

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was presented to the Bureau of Reclamation.

Item 4:

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'In evaluating the Utilities' proposals the
Bureau ignored increased Project revenues
which would result from reduction in trans-
mission power losses under the utilities'
proposal.'

Gentlemen, that point has nothinq whatsoever
to ~ with the ownership of transmission lines
~ ~ application of wheelinq charqes. I repeat,
that item of $75 million has nothing whatsoever
to do with the construction or ownership of the
transmission lines or the application of the
wheeling charges. If the federal government loses
$75 million through this manner, then the utility
companies lose a like amount. This point has to
do only with interconnection of the power systems;
and interconnections can be made regardless of
who owns and constructs the transmission system.
So this is a 75 million dollar red herring.

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I'll carry it a little further. This sav-
ings comes about (Mr. Kuiper can demonstrate) by
displacement of power. You will note the lines
which run from Glen Canyon to Phoenix. Then to
the right of that are lines which run from Four
Corners to Phoenix. . The line terminates at
Prescott actually but there are existing lines
already from prescott to Phoenix. Now a tre-
mendoussaving can be realized by a simple dis-
placement of power.. In other words, Glen Canyon
Reservoir can furnish power to the Arizona Pub-
lic Service Company for delivery to Phoenix. The
Arizona Public Service Company is building a huge
steam plant in the Four Corners area. Instead
then, of wheeling our power between Glen Canyon
and Four Corners, we can simply deliver the power
to the Arizona Public Service at Glen Canyon and
in return take a like amount from them at their
Four Corners plant to wheel on north. This
amounts to a tremendous savings to both :the
Arizona Public Service Company and to the federal
government or to our project. It's an equal
amount. Again bear this in mind, the Arizona