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<br />LQOL <br /> <br />I <br /> <br />which has to be added in there. The Bureau says <br />'We don't account for switching facilities in <br />transmission investment. We account for it in <br />power allocation'. We say 'OK, put it up in the <br />$490 million then. It's still a reimbursable <br />cost which must be paid back with interest and <br />does affect irrigation assistance'. The Bureau <br />then says 'We have a $25 million contingency re- <br />serve in the power allocation; therefore we will <br />apply the additional $5 million against the $25 <br />million contingency'. That is where the issue <br />stands right now. An inquiry was made by Senator <br />Goldwater and Senator Anderson of Mr. Dominy and <br />Mr. Bennett that if they needed the $25 million <br />in the first place, why didn't they need the $25 <br />million under the new system and how could they <br />apply the $5 million against the $25 million con- <br />tingency? That is point No. one and that is the <br />only issue between us and the Bureau on that <br />figure. <br /> <br />Coming on down, your total power allocation, <br />of course, is up because of your $11 million and <br />your interest during construction. Irrigation <br />allocation stays the same. The interest on the <br />power allocation goes up because of the increased <br />investment. Remember you've got this interest <br />money against the power allocation for 86 years. <br />This is a very crucial figure in these payout <br />schedules. In fact, $1.00 added to investment, <br />because of the interest component, results in <br />approximately $4.00 to $5.00 decrease in irriga- <br />tion assistance at the end of 86 years. We'll <br />come back to this point. The total obligation to <br />pay under the modified system is $1,301,000,000. <br /> <br />I <br /> <br />Then we come down to the revenue from the <br />sale of power. Here the Bureau does not agree <br />with our figure of $2,655,000,000. They claim <br />that the revenue from the sale of power ought to <br />be $2,672,000,000 and that the addition of 500 <br />miles of transmission line has not changed the <br />revenue which they would receive from the sale of <br />power. We have made a computer analysis of this <br />system and we have calculated transmission losses <br />which will result from this new system and this is <br />reflected in the $17 million decline in revenue. <br />