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<br />. Memo - Executive Subcommittee, PSIAC - December II, 1980 - page"3 <br /> <br />Water Supply for the Intermountain'Power Project <br /> <br />Mr, Rodney Clark, Chief of the Advanced Projects Section, Los Angeles, <br />Department of Water and Power, made a presentation On obtaining a water supply <br />for the Intermountain Power Project in Central Utah. The IPP Project consists <br />of four 750 megawatt thermoelectric power generating units, which use 22,000 <br />tons of coal per day. The total cost of the project will be $7.0 billion, and <br />the energy is expected to sell at about 44 mils per kilowatt hour. <br /> <br />In obtaining a water supply for the project, the Negotiating: Team <br />operated under four principles: (1) Negotiations would be carried on only <br />with established water entities. (2) All water users would have an equal <br />opportunity to sell water to the project. (3) Impacts to water users who <br />did not wish to sell to the project would be minimized, and (4). The effects <br />on agricultural production would be minimized. <br /> <br />Total water requirements of the project are 45,000 acre-feet annually. <br />Initial negotiations began with the water users making an offer of $3,400 <br />per acre-foot (equivalent cost iri shares of stock), and an IPP counteroffer <br />of $550 per acre-foot. The final price was $1,750. (This amounts to an annual <br />cost of approximately $100 per acre-foot.) At the present time, equivalent <br />shares of stock sold to agricultural water users are bringing $400 to $500. <br />Mr. Clark concluded by saying that drastic changes in water law are not needed <br />to obtain water supplies for .industries. He strongly recommended that State <br />and Federal Government allow the existing legal framework and open market to <br />operate in these transactions, with a minimum of interference. <br /> <br />Mr. Clark did pose the interesting question of "Should the holders of <br />water rights who are only granted the right to use water, be completely free <br />to act in a manner which is detrimental to the owners of the water, who are <br />by statute the people of the State?". <br /> <br />h <br /> <br />B-lO <br />