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COLORADO RIVER STORAGE PROJECT 19 Colorado River Basin fund for moneys expended from such fund on account of allowances for Hoover diminution during the illling period of the storage project reservoirs authorized by the act of April 11, 1956 (70 Stat. 105), in accordance with paragraph 5 of the general principles to govern, and operating criteria for, Glen Canyon Reser- voir (Lake Powell) and Lake Mead during the Lake Powell filling period, approved____________________, Such component shall be sufficient, but not more than sufficient, to provide said reimbursement in equal annual installments over a period of years equal to the num- ber of years ov~r which costs on ac~ount of ,the allowance were in- curred by the satd Upper Colorado R,ver Basm fund, I . EXPLANATION OF PROPOSED PROCEDURES FOR COMPUTING DEFI- CIENCIES IN FIRM; POWER GENERATION AT HOOVER DAM DURING FILLING OF COLORADO RIVER STORAGE PROJECT RESERVOIRS In order to implement principle 5 of the "General Principles To Govern, and Operating Criteria For, Glen Canyon Reservoir (Lake Powell) and Lake Mead During the Lake Powell Filling Period," it became necessary to develop criteria for operating Lake Mead on a theoretical basis as:if the Colorado River storage proj ect reservoirs were not iml'ounding water. Principle 5 of the general principles is quoted as follows: . The United States will make a fair allowance for any deficiency, computed by the method herein set 'forth, in firm energy generation at Hoover powerplant. For each operating year deficiency in firm energy shall be computed as the dif- ference between firm energy which, assuming an overall efficiency of 83 percent, would have been generated and delivered at transmission voltage at Hoover }?owerplant in that year if water had not been impounded in the reservoirs of the Colorado River storage project storage units (Glen Canyon, Flaming Gorgej Navajo, and Curecanti), but excluding the effects of evaporation from the surface of such reservoirs, and the energy actually generated and delivered at trans- mission voltage at Hoover powerplant during that year adjusted to reflect an overall efficeincy of 83: percent. At the discretion of the Secretary, allowance will be accomplished by the U.S. delivering energy, either at Hoover powerplant or at points acceptable to both the Secretary and the affected Hoover power contractors, or monetarily in an amount equal to the incremental cost of generat- ing substitute energy. ~ To the extent the Upper Colorado River Basin fund is utilized, the moneys eXpended therefrom in accomplishing the allowance, either through the delivery of purchased energy or by direct monetary payments, shall be reimbursed to said fund from the separate fund identified in section 5 of the act of December 21, 1928 (45 Stat. 1057), to the extent such reimbursement is consistent with the expenditures Congress may authorize from said separate fund pursuant to said act. The attached additional HRegulation for Generation and Sale of Power" in accordance with the Boulder Canyon Project Adjustment Act is hereby made a PB..rt of these principles and criteria. In order to deve1pp the criteria for operation of Lake Mead and Hoover Dam, the theoretical study has been divided into two parts: (1) Lake Mead inflbw and (2) reservoir operation, These are dis- cussed separately asfollows: . "~ LAKE MEAD INFLOW 1. Storage chang<l (including initial accumulation of bank storage) in upstream reservoirs at Lake Powell, Flaming George, Navajo, and the Curecanti system,