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rl V.t " 001 703 . . " At a meeting with Governor Lamm on August 16, attended by Monte Pascoe, Chips Barry, and me, the Governor asked how I was progressing on the staff work for the discussions with Arizona. I indicated that I was a month behind my intended schedule due to the fact that I had not been able to meet with Steiner the last week of July and had been unable to reschedule anything with him until August 29. Governor Lamm expressed his concern that I proceed as rapidly as possible, I did in fact meet with Steiner on August 29 in Phoenix. At that time I reviewed with him my analysis of how the CRSP power rate would change as a function of using different rate setting methodologies, new interpretations of the 1956 CRSP Act, changes in the data base, etc. Steiner and I concluded that we had a reasonably good understanding of how potential changes in the power repayment studies would affect CRSP power rates with the, exception of Governor Babbitt' 5 orig inal proposal. That proposal .is that the federal investment in power features be repaid over the full 50 years authorized by the CRSP Act. The procedure embodied in the current power repayment studies requires the federal investment in all power features to be repaid before any power revenues can be devoted to participating irrigation projects. Because the first participating irrigation project must be paid off before 50 years is up on all power features, some power features (notably the Diamond Fork Powerplant, Bonneville Unit) will be repaid in a period of less than 25 years. Steiner and I agreed that I would request WAPA to perform studies on What the CRSP power rate would be were Governor Babbitt's proposal to be implemented. Lamm's Calls to Me On September I, shortly after Governor Lamm had breakfast with Monte Pascoe and David Robbins, he called me to express his concern that we did not have enough "sense of urgency" in . pioceedin<j-with- tl1e-d[scussions With- Ariwna -and Utah. -- He.- indicated that he had significant qualms about the fact that Arizona was proceeding with the resolution of the Hoover power issues and that we would lose our "window of opportunity" to get Arizona's attention once they achieved their settlement with California and Arizona. He told me that he wanted to call Governor Babbitt to express this concern and to tell Babbitt that we would need some assurances of his good faith if we were to let S. 268 proceed without Objection. I reminded Governor Lamrn that he had hoped to reach Governor Babbitt in late Mayor early June to raise just those points, but had not to my knowledge been able to do so, Governor Lamm confirmed that he had not talked to Babbitt following their mid-May meeting, I also told Governor Lamm that I thought it important that he call Governor Matheson, as we were having a great deal of difficulty in getting Utah's attention. I briefly explained to Governor Lamm the fact that Dan Lawrence had asked me to meet with him a second time because they had not acted upon MEMORANDUM -2- September 28, 1983