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L. M, ALEXANDER Slide 5 4. The site must be within economical transmissiQn distances from major load centers, If other transmission facilities are nearby and can be interconIj.ected, this is a plus factor in the plant site selection, Now, there is a 5th critical item entering into the powerplant siting consideration-sometimes more important than the others, as Jack Moore will so well point out-the social or environmental considerations. Slide 6 Based on our studies of the Navajo site near Page, we felt that it optimized all of these con, siderations, So late in 1967 we placed on order three 750,000 KW turbine generators, In January 1968, Western utilities met in phoenix for preliminary discussions on the Navajo Plant. Spring of 1968 saw the Central Arizona Project moving through Congress shorn of its hydro- electric pumpers and cash registers (Bridge and Marble hydroelectric projects) and with a pumping power need of 400,000 to 600,000 KW, "i Secretary of the Interior Udall '" June of 1968 :called a meeting among Southwestern utilities and the Navajo Tribe. The Secretary asked that the p,ower resource studies being conducted by the utilities on the Navajo Project be expanded to includ~ the pumping needs of CAP. The reason the Slide 7 Secretary desired participation in the proposed Navaj~ plant is easily seen in this slide which shows that the annual savings to the Central Arizona Project from "participation" rather than purchasing pumping power is in the order of $10 million per year-this would be an added cost to CAP water users, A Steering Committee was set up to determine the most economical way of supplying CAP requirements, and the area's power requirements for the 1973,76 period, and I was elected chairman. The Steering Committee then coordinated the Wor~ of ten task forces formed to work out and Slide 8 analyze the project in depth, This was accomplished with what I believe to be the greatest array of talent ever applied to a single power resource project, Complete start,overs were necessary when New Mexico and El Paso decided on another site, and again in the Spring of 1969 when Southern California Edison pulled out of the project. These actions cut to half the optimum size of the project which had been found by the task forces to be five million KW-2500 MW at Navajo and 2500 MW at the existing Four Corners site. I Instead of six 820,000 KW units we finally settled on three 770 MW units having a total capacity of 2310 MW. The balance of 1969 was primarily intensive work and negotiation among the respective task forces on details of the various agreements. At times, I for one, often wondered if we were ever going to pull the loose ends together. The negotiati<;>ns were often frustrating, long drawn out, and about as complicated as power negotiations could p'ossibly be, The trouble was that it wasn't just power negotiations. Seemingly everybody in the whole Colorado Basin got in the act. Nevertheless, by September of 1969, all of the remaining particip~nts were ready to recommend to their manage, Slide 9 ment, execution of the various agreements and arrangements-which they have proceeded to do, This slide shows the participant's share of the plant, Because of the critical peak demands anticipated in the summer of 1974, it is important that construction contracts be entered into during December 1969. We expect to award such a contract early next month. The second and third units are scheduled for operation in 1975,76, as you can ,24,