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COLORADO RIVER STORAGE PROJECT ,. water otherwise would have been released at Hoover, We believe this accommodates the intent of that suggestion. Principles 6 and 7,-No adverse comments or suggestions were received relatingto these principles. Principle 8.-It was proposed that any water stored in Lake Powell above elevation 3,490 should be subject to release to maintain rated head at Hoover powerpbnt. We recognize the desirability of main- taining rated head at both Hoover and Glen Oanyon powerplants, and one of the operating rules might well recognize this as far as it is consistent with the broad objectives of the filling criteria, It should not be a part of the filling criteria, however, Lower basin mterests indicate that the offsetting of Hoover im- pair~nent should have priority on upper basin power output to the extent that the Secre.tary cannot find replacement energy for purchase. Although we are willing to devote nonfirm energy to this purpose, as previously indicated, we do not believe the proposal should cou- template use of firm energy. We are confident that arrangements for the purpose of replacement energy combined with the availability of energy produced by upper basin powerplants which cannot be marketed at firm power rates will be adequate to meet the proposed formula, Principles 9 and 10,-No comments 01' suggestions were received relating to these principles, Several other comjllents and suggestions were received that do not relate to any specific principle. The point was made that the impact of the storage project opera- tions on the Parker-Davis projects received no attention in the filling criteria. The point' was made in relation to a possible power rate increase. The likelihood of the filling operations of Lake Powell causing a need for a 'power rate increase at Parker-Davis is so rernote that we consider it unnecessary to relate the filling criteria to these projects. The suggestion wa.s again advanced that the upper basin should be formally represented on a river operations committee. It was sug- gested also that working committees should be formed which would include representation of lower basin water users as well as power contractors who would have an effective voice in secretarial decisions in resolving problems which may arise in filling Lake Powell. In both cases it was indicated that congressional authorization of such com- mittees probably would be necessary or desirable, Responsibility for operation of the Federal projects involved is now vested in the Secretary of the Interior and, we believe, properly should remain so, Oreation of new bodies with statutory powers which might tend to lirnit or diffuse this responsibility would, in our opinion, unnecessarily complicate and make more difficult the coordinated operation of a widespread river basin system, As pointed out in my memorandum of June 13, 1961, we would gladly assist in the formation of a group on an informal basis. In our view, that group could function most appropriately in an advisory capacity to the Secretary, I recommend that- 1. You adopt the attached general principles and criteria subject to whatever reconsideration) if any, may appear desirable after having affqrded the Hoover power allottees an opportunity to present their views on the additional regulation No, 1, in , . 9