WSP00620

• File Number: 8220.100.40
• Description: CRSP
• Basin: Colorado Mainstem
• Date: 3/14/1963
• Author: USDOI
• Title: Sixth Annual Report on the Statuts of the Colorado River Storage Project
• Water Supply Pro - Doc Type: Annual Report

40

COLORADO RIVER STORAGE PROJEOT

It is apparent that the incremental cost of generating substitute
energy applies to pl. lottees having generating facilities of their own
eapt1ble of produeing the substitute energy.
However, this dIstrict, having no generating faeilities, will be
compelled to purQhase (rather than generate) substitute energy.
The quantity of energy so purehased, and the time of use of sueh
energy, will bedjctated by the district's operating requirements.
Some such purehases may be "on peak" with referenee to the sources
of energy, and henee may be more costly than possible "off peak"
purehases. The cqst of substitute energy to the district presumably
will be greater than the contraet eost of HOOver energy.
It is the view of'this distriet that in interpreting and applying the
quoted language of; the criteri", "the inerement"l eost" to the district
of substitute energjy will be determined with referenee to the actual
eost of such energy to the distriet at the time I1nd in the quantity
required for distriet operations.
Your eonfirmatiqn (or comments) on this eonstruetion, at an early
date, will be appreciated. Any diffieulty relating to determination
of incremental eosts would be eliminated if substitute energy ean be
delivered in accor<;lanee with the district's operating requirements.
The distriet will mueh prefer sueh substitute energy instead of mone-
tary eompensation. Your present assurance that such substitute
energy e"n and will be supphod would be most helpful.
Very truly ~ours,

.

R. A. SKINNER,
General Manager and Ohief Engineer.

DEPARTMENT OF WA'l'ER AND POWER
OF THE CITY OF Los ANGELES,
Los Angeles, Oalif., May 2, 1962.

Hon. STEwAR'r L. UDALL,
Secretary of the I nt~rior,
Department of the Il'terior, Washington, D.O.
Attention of Mr. F:loyd E. Dominy, Oommissioner of Reclamation.
DEAR SIR: We luwe your letter of April 4, 1962, transmitting a
proposed "Additional Regulation No.1 to the General Regulations
for Generation and Sale of Power in Aecordanee With the Boulder
Ot1nyon Projeet Adjustment Act" and requesting comments thereon.
We ohserve (,hat the language with respeet to reimbmsement
to "* * * the Upper Oolorndo River B"sin fund for moneys expended
from sueh fund on aeeount of allowl1nces for Hoover diminu.
tion * **" does npt make any provision for interest on the moneys
so expended from s!lid fund.
While we should! prefer that the language explieitly state that the
contemplated reimbursement is to be "'without interest," we assume
thl1t it is vour intebt to aehieve the same result through the omission
of any pro'vision fot interest and that the language does in faet aehieve
this result. .
Wlmt we have said above with respeet to the language of the
prollosed "AdditiOll,,1 Regulation No.1" is, of eomBe, equ"lly appli-
e.\ble to the languitge contained in seetion 5 of "General Prineiples
To Govern, and Operating Criteria for, Glen Oanyon Reservoir (Lake
Powell) and Lake; Mead During the Lake Powell Filling Period"