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<br />January 10, 1984
<br />
<br />The Honorable Chairman Raymond J. O'Connor
<br />Federal Energy Regulatory Commission
<br />825 North capitol Street, N.E., Room 9000
<br />Washington, D.C. 20426
<br />
<br />Dear Chairman O'Connor:
<br />
<br />I am very concerned about the Federal Energy Regulatory
<br />COmmission's September 21 ruling as it relates to the
<br />uncompahgre Project in Colorado. The decision may have a
<br />needlessly severe impact on one of my constituent. companies,
<br />Allis-Chalmers Hydro-Turbine Division in York, pennsylvania.
<br />
<br />As related to me, there is some question as to whether
<br />all the facts were adequately communicated to the FERC
<br />Commissioners prior to their decision and about the quick
<br />fashion with which a decision was made at a september 14 meeting.
<br />Allis-Chalmers invested $250,000 out-of-pocket in this
<br />project in the belief that the developer was acting within the
<br />regulations. According to Allis- Chalmers, the relationship
<br />between the City of Montrose, the Uncompahgre Valley Water
<br />Users Association and Mitex was public knowledge very early on
<br />in the FERC staff's investigation. It seems only fair that if
<br />they would have made them known by June 1982, when the license
<br />appl1cations were submitted, or at least after the November 1982
<br />FERC hearing on municipal preference, before Allis-Chalmers
<br />dedicated so much capital to the project.
<br />The Uncompahgre project is extremely important to the Allis-
<br />Chalmers Hydro-Turbine Division, which is located within my
<br />district. In addition to the original $250,000 outlay, the FERC
<br />decision could seriously affect employment levels in York. For
<br />Allis-Chalmers and its component suppliers, this project will require
<br />in excess of lOa man years of labor. Considering equipment, the
<br />employment generated will be approximately 300 man years. To this
<br />figure must be added the employment generated by the contractor,
<br />the engineer ,and the Water Users Association, increasing estimated
<br />employment as a result of this project to 1,000 man years.
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<br />To put the project .on hold" for 12 months is not in
<br />anyone's best interest. Given the importance of this project
<br />to the many firms and workers involved, including Allis-Chalmers,
<br />I respectfully ask the Commissioners themselves to reconsider
<br />the merits of their ,earlier decision.
<br />
<br />page 2
<br />chairman O'Connor
<br />
<br />ID2
<br />BILL GOODLING
<br />Member of Congress
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<br />cc: D. Brandl
<br />BG/dps
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