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<br />ROo'vejeJ)am Benefits &uld
<br />Cniinble for Southland
<br />
<br />~~ .': ,. Ill: . ~" './
<br />;Br..~R~DOl\9:'iKAY ;':
<br />~Call!omia:'consUmtrs have all enonnous
<br />stake in the answer to a qu~tion being
<br />conside~ i.rf' Congress: this w~k: Should
<br />tJ1e btnefitJ of pUblic ProJects be auctioned
<br />of! to Ute highest bidder?
<br />. At l!$"Qe is allocation or the electric power
<br />that wtll be generated by Hoover Dam for
<br />the nat 30 years. If Southern California'.
<br />share of that power is put out to bid. power
<br />and water COSts here will be inflated by u
<br />much as $400 million a year, and the concept
<br />that the benefit! of pUblic prOjects should be
<br />distributed in a not. for-profIt Ina.Mer will
<br />be undermined.; .
<br />'For a hall -cenLUry Hoover Dam. has been
<br />part of the Southwest's hfeblood. That miWI
<br />of concrete poured actoss the Colorado
<br />River near Boulder City. Nev., tamed the
<br />~'~~';'~~'~~~J river', floods, apemng vast tracts of down-
<br />:;':':~':::" :".~.,. - strearnland to productive use. Water stored
<br />behind the dJ.m Irrigates millions or acres or
<br />rar.nland and quenches th1rSts 1n California.
<br />Arizona and ~evada. Billions of kilowatt.
<br />....:. 'hours or electnclty produced by Hoover's
<br />~~.~~.r;_'~:i~>:~' '~:'.:::.,;~. hydroelectrie turbmes meet the need$ of
<br />: (::,',:\.~ .... . ... :1 ~::;D:~.and indu5tr>: and mlllions of urban
<br />':~<::- -. . ~ '':' :.:' -Southern Califorma has particularly ben.
<br />~...;~.'. .~. . -:. efited from Hoover. But these benefits didn't
<br />
<br />~,~g.~I~_.;-,;~_-~,-~_i.!?_:.,' f~!,g~~1fl~~;fl~ft.s~
<br />- - '-'. be repaid. Utilities m Southern Cali!ornia-
<br />l~'<:'~:,:-.'~,"~'~-- 'e
<br />:~,:.ts~::~~:':'~.--:;:;::~:.;~~:'. ~~~~~!e:~fe:;~~0~~ th~~~ ~~~~
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<br />", -..". . .' water Into the Southland-agreed to pur~
<br />~:-,~~....' .., ,..' chase two.thirds of the power produced at
<br />.. "', - HDover. The remaimng one. third was as.
<br />-.,.'- ..-.-' ""'-'"
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<br />fl{{~~i~~ ;~~~~~s~~~?:f.~~~~~~5~
<br />~~~~~~~,-2>~.;'. ~:~ ~~~=~~lIihesap~:~~ th~ne ;~l~~~
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<br />~__.."""'.";~~~~:>:'_ ! seekJng to renew for 30 yean thelt nghts to
<br />~.--:;;..... . ,- purchase Hoover's power. This is power that
<br />'-',:'''. ----....".. by today's sta:1c.uds i! conSidered in.
<br />;:.f........,.-. -;/'".:." expenslVe. The $3Vin~s are reillized by
<br />......-..- -.-...~ -'-. utillties serving many mtllions of people. earl BcrO?\kay u gt"MTUl managtT of the
<br />
<br />@~t~':~{tT::~ In South'm c,rif'm:~ ",n, m,,, tlw> ""ropol:":~_~"~:'n<l_ ,_ '_ ,~F,::,~:~~~;~,~~~~~t~~:~~,i~~
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<br />J3 million water and eJeclrlcity custome",
<br />enjoy lower bills ~use of the comrruunent
<br />made 50 yean ago by the utilities.
<br />A 8erkeleY-baMd group i! proposing a
<br />plan that would inflict an econorruc injustice
<br />on the people or Southern Calitonua and
<br />poSSibly establish a precedent of private-
<br />publiC competition. The Environmental
<br />~fense Fund i! 5UggeStmg that Hoov~r's
<br />inexpenstve hydroelectnc power should bt-
<br />pnced at the ~e level as power produced
<br />at considerably more expenSiVe coa.i or
<br />fosstl-ruel plants. caUSIng water and power
<br />rates to mcreasew-a.,llcally. The EDF would
<br />pinch the consumer in an attempt to force
<br />further energy conservation.
<br />Arbittanly rals1ng the price of Hoover's
<br />power would be mflationary. It would drive
<br />up electriCity and water bIlls and raise
<br />pnces of goods and semces produced in
<br />Hoover's three. state distnbuU:->n area. Even
<br />the EDF acknowledges that Hoover's cus-
<br />tomers would pay over a IO.year penod
<br />$3.5 bUlion m addJUonal co!u tJ the pnce or
<br />the dam's electncaJ outpUt were artificially
<br />increased. "fost of these added cosU would
<br />be borne by the Greater Los Angeles area. It
<br />is: not likely that Southern Californians are
<br />ready to accept these economic hardships
<br />bemg proposed by a handful 01 seU_
<br />appointed guardians of the public purse. Nor
<br />i! it likely that government free enterpnse.
<br />once established. would stop at Hoover.
<br />Thett are hundreds. perhaps thousands. of
<br />government projects that could. 11 Hoover
<br />power IS lrep-marketed. be rree-marketed
<br />themselves.
<br />Congress should enact a power-allocation
<br />plan that wtIl allow the ongInal contractors
<br />to substantially retain their Hoover supplies
<br />while malung some additional power avail-
<br />able to other uUilty comparues. Such a plan
<br />is now before Congrtss.
<br />Hoover Dam was fmanced by the South-
<br />west and is part of thIS area's Utihty
<br />infrastructure. Its benefits should remam
<br />here-helpmg the people served by the
<br />utilities that made It all poSSIble 50 yean
<br />, ago.
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