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<br />,; <br /> <br />~w ffir~'~ ~\ <br /> <br /> <br />PUrposes: <br /> <br />~~&" " .@OO&\~ <br /> <br />J. A. (TED) RIGGINS. JR., Pres. ,)t <br />(Ar;..ona) <br />J. A BARKLEY, Firsl Vice PresJdenl <br />(ColOrado) <br />ROBERT T. CHUCK, Second Vice President <br />(Hawaij) <br /> <br />JOHN W. SIMMONS, Treasurer <br />(Texas:, <br />MILO W. HOISVEEN. Past President <br />(North Dakota) <br /> <br />lil$$@(Cl~&\ 'jj'~@OO <br /> <br />897 NATIONAL PRESS BUILDING WASHINGTON, D. C. 20004 <br />(202l 347-2672 <br /> <br />rl':1) rl~!:O-:, (JC\ In ~ I[.,['('J Ie' Ii:' <br />I-.II~.~ ':--. i~ I UI ,-,.I + II..~ '''''', <br />U0ll., c2) ~_) 1.\:11 IN ~'): L, ",:;; <br /> <br />26 December 1973 <br /> <br />SUBJECT: <br /> <br />RATE OF INTEREST [AND DISCOUNTING]r F.Rl\V ED' <br />WATER DEVELOPMENT Ra::.Ctl <br /> <br />TO: <br /> <br />WESTERN RESOURCE EXECUTIVES <br /> <br />JAN 021974 <br /> <br />IlOLO. WATER ,'A <br />lllll1llERVATlON' WARt) <br /> <br />To tell you about an upcoming decision as to interest <br />rates. <br />To urge you to discuss your views with State officials <br />and your Congressional delegations before January 21, <br />1974! <br /> <br />(1) <br /> <br />(2) <br /> <br />The decision: <br /> <br />1. The decision will be made on Capitol Hill, by the Congress, <br />between respective provisions, Senate vs. House, in water develop- <br />ment bills. Facts follow,. <br /> <br />Background: <br /> <br />2. AS you know, the interest [and discount] rate applied <br />to Federal-State projects governs the B/C ratio and thus the recom- <br />mendations of the Agencies as to whether water projects be builto <br /> <br />3, The interest-rate concept recently established by the <br />Water Resources Council is: <br /> <br />.....the discount and interest rate will be related <br />to the cost of Federal borrowing."* <br /> <br />4. Using that concept, the Council set the rate for FY 1974 <br />at 6 7/8%.** That is 1/3 hiqher than the rate of interest to <br />finance municipal waste treatment, industrial wastes included! <br /> <br />*Federal Register, September 10, 1973; Page 11. <br />**Ibid.; Page 86. <br /> <br />DIRECTORS <br />J. A. (Ted) RIggins. Jr. <br />James F. Sorensen, Call'. <br />J. A. Barkley. Colo. <br />Robert T. Chuck, Hawaii <br />John A. Rosholl. Idaho <br /> <br />Chns C. Green. Kans. <br />Hubert G. White, Mont. <br />Judge William C. Smllh. Jr.. Nebr. <br />Roland Westergard. Nev. <br />Jerry O. Geisl. N. Mex. <br /> <br />Milo W. Hoisveen. N. D. <br />Clarence Base. Okia. <br />Harold Henigsan. Ore. <br />Homer Engelhorn, S. D. <br />John W. Simmons. Tex <br />Edward H". SouthwIck. Utah <br /> <br />E. F. (DonI Doncasler. Wash <br />Marlin T. Kurtz. Wyo. <br />Paul W. Scott <br />Railroad Representative. Wash. <br />Wesley O' Ewart. <br />Director Emeritus. Mon!. <br />