BOARD01799

• Board Meeting Date: 9/8/1961
• Description: Minutes and Resolution
• Board Meetings - Doc Type: Meeting

I

I

GOVVERNOR JOHNSOlil:

MR. SPARKS:

"'-oJ,.,.,

storage project energy and you state that I
advised you that I entertained no such inter-
pretation.

liIow the question, Governor, which you asked
me had to do with the amount of the charge that
could be made for this power. In other words.
the way you explained the question to me was
that Mr. Alexander had stated that the charge
for electricity to the buyer must be based upon
the total federal investment. In other words,
if the federal investment could be paid off at
five mills within 50 years, then that should be
the price. The way you explained it to me you
stated that the federal investment was the con-
trolling factor in establishing the price of
electricity. I stated to you that, in my
opinion, the federal investment, as such. had
nothing to do with the price of electricity.
That the price was regulated by as much as we
could get and I do think that nothing ever went
into the question of utility vs. federal wheeling
as such."

"There's room for a lot of misunderstand-
ing about that matter. I either misunderstood
the question or I misstated it incorrectly to
Mr. Sparks and I will accept full responsibility
for misunderstanding it and misstating it, if I
did. But I tried to run the matter down because
it was extremely important and I understood Mr.
Sparks to say that he did not entertain that
interpretation as I repeated it to him."

"That was correct, Governor, on

"

GOVERNOR JOHNSON: "I'll accept the responsibility for the
misunderstanding of both Mr. Alexander and my
inquiry to Mr. Sparks, if there is any question
about it. Mr. Scott was present in the confer-
ence with Mr. Alexander and Mr. Scott pointed out
the provision in Public Law 485 that Mr. Alex-
ander was talking about. Mr. Scott may remember
something about it. He may be able to clarify
if further if any clarification is necessary."