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002263 , . ,. ! THe N~V YORK TIMES, SATURDAY, APRlL 28, 1984 .....1 :\~ :n ,-. Q;,lJC.:."i~W UorJ\ Q;lm~$ ~ F~II'II!S' .o.DOLP!lSOCHS.J'l.61~J:IS<S-IlU:l AATII\;R ftA YS SL1..ZBUlGEJl. P.J~Iw-I'.l'J.I~t OR\UE Dl'I.noos.Pt.~UV-I9>'jI.ISoSJ A.ltTI4t'R OCHSSUU8EJ1GDl., 1'l.&I.",^", . "-I<4JtOS~E~",,"..IWori:~ stnolot:II.TQ'P'l....G,.\,j'~Ed_ .urnruRGtl.A~h."I_""*E~ J_f"..5t..GIILE"'"ELD.A_-"I~ Edu- t.OUUSlLn:RSTIt'<I.ASIIuIaAl.V~E~ . .\,(AX'lU.....K,[LErJIUJl'<aJP~EdllD<" u.el{ ROSE.."'I'1'lU.1..~P<ohEd~~~Ed."" . CHAA1.O'M"ECL"RTlS.A..~r.d_ ro!ol""lCKLIl..As.Ko4Uf./iJ..UJI . Jote< 0 PO)olP'llET,Cr...., VP.. Gt~'al."I"^,,,," l.A.'iO:llPRI'-llS,!V;'P.Adu'''u"",,, J 4.IlIGGSJR.Sr VP.Opoo~ HOWARD DiSHOw. V P.E__",,~ R~~ RUSSELL T tLWlS. \'P, C.,.rlllctw\ JOM!" o,j 0"81'1.11:..... ;'P.CONTOJ.'- WSE J ROSS. VP. S,~ Le-ct2r: On E;2C-::-ic PO'.ver No Need to Profit From Hoover Dam To the Edi:or: Your rece~1 edilOn]1 s'J:rgest:on that Fec!~ral ;:tOwer trc~ Hoover Dambesoldtott'.e!'1ighesttl:dder_ insll!ld ot 3! rates Oased en cost of service-in order to em::our:sge con. servatLon, reduce future '.l.5e ot elec. tnclt" anj raise reVe~\;e !':as a cer. lJ.in :i;l;:eal. BUIlt won't t~ld W3ler_ unlesstl'legoaiistopumshco:::::sumen by pi.l.5hH:';: e!ectnc bills sk:;.rllgh. The r.Ollon adv:inct'd by t::e E:wl. ronment..1 Defense Fund that the Government shOuld c!':arij:e ....h:ltever thetr:itric'.vlilbe::uforH::>overDam power m ordu to dam;:en elt"etnc de. mand is lIke jack..ir.g up health care costs to cut ::osplt.11 construction. ~Iore to t~.e point. hO'Never, the feder1t Government is not in t!'le power busmess to make a Pro/It. In tact. statutory slandan:s protu~llt Selhnl!:f~eralelettt"\cllytOt::ehl~h. est tlC:~er. Ratts are SIH to re-cover thef~IlCJtlltallnvestmenta::dcosIOf ser/lce. P.:e same pnnclple IS ilp.. pli~ to rate selling by state and local reg'JJators. CO:'.$umers would be as- tonl!hed if this sensible concept were abandoned and uUlit:es gIVen unfet- tered rreedom to charge customers ""'hatever t."1ey coul::! get. That surely ....ould provtlke a ccnsumer revolt. Selling Fe-jeral power at an artifi- cial "muket" rate would place an irltolerable bu!'den on consumers. fore:u.mple, the Pnvate Settor S1.:r_ \'ey on COSt Control (Grace CommIs_ sion) indicales that applying the muket value concept to Federal po.....er rates across the board would increase customer Charges by S4.S billion over a three.year peno<t Fur_ ther.lt ....ould negate the competitive effett 01 lower public power rates In ~olo:1ing down private power cornp"- mes'charg~. Federal po.....er IS ger.er3led almost exclUSIvely fr':l:"\'! ::'\ultlpUr;lOSe hy- croelt"Ctnc power proJetts. Its COSt IS re!auvely 10.... because hydrotlectnc po....er IS produced from r"llIng water. and does not requIre the burmng ot fOSSil or nuclear fl,;els. :-'Iost Federal dams were bUIlt many years ago when constructIon costs .....ere 10'....; there is very l1ttle ne.... construCt:On. Finally, the cOSt ot producmg federal po....er does not include pa)'lng G.l\"l_ der.ds to pnvale stockholders. TI:e pnme pUrpose of ttle Federal power program IS not 10 maJumlze revenue but to sell po.....er frnm public projects at (he lo',o,'est poSSIble rales that wII! recover the Government's investmenl and pay all operatmg ex. ~flSes.1l t~eproJtC:sarenot pa)1ng . their way, they should. But that does not mean oHenng Feo::1eral po....er to t.'le hlRMest bIdder, wIUl tOlal dlsre-- gard for impact on electnc cor.sum. etS. who already have borne the brur.t ota5; percent mcrease In the rea.l pnce at electnclty dunng the pUt decade. A1.E.'( RA::Il.'i Executive Director Amenc.1ll P\lblic ?O~er A.ssoclatlcn Wastllngton, ,~pnl !9, 19,..