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'. L. M, ALEXANDER Slide 10 see on this construction schedule, Major equipment items are on order, representing about one-half of the estimated 309 million dollar plant cost, The plant represents probably the largest thermalelectric plant ever undertaken under one contract, It will allow the participants and the government to take full advantage of the Slide 11 inherent "economies of scale," The 800 mile, 500 KV transmission system on a "first estimate" will cost an additional $165,470,000. The Salt River Project will construct and operate the plant-Arizona Public Service Company will build the 500 KV transmission lines and substations into Phoenix, and the Los Angeles Department of Water & Power will construct the transmission facilities to the Slide 12 Colorado River. Rail facilities from the Black Mesa coal area will cost an additional $21 million. The mining facilities will be installed by Peabody Coal Company in conjunction with the terms of the coal supply contract. That, ladies and gentlemen, is a very over-simplified story of how we have progressed on the vital Navajo Project. Our remaining task is to build a big, rugged, dependable plant-to the budget, and on schedule-but a plant which at the same time will be a good neighbor, Being a good neighbor is part of our "Recipe" for a power development. It must provide benefits to the area of its locale, as well as to its owners-it must in fact lift the spirit of a person looking at it, Slide 13 In order for us to make use of the coal and water, which were controlled in major part by the Navajo Tribe of Indians, we had to agree with their requirement that the plant be built on the Reservation, The Navajos in turn will receive a number of benefits for the use of coal from their Reservation and their claim to water from Arizona's Upper Basin Colorado River allotment. The Hopis will benefit too from their claim. In both construction and operation, Indians will be given utmost con- sideration for jobs for-.which they are qualified. Slide 14 Coal royalties to the Navajo Tribe will amount to $1,800,000 a year. To rent the plant site we will pay the Indians an additional $160,000 annually. There are other payments too for right-of-ways and permits. The participants will also make available to the Navajos about 60,000 KW of electricity from the Navajo plant for their future economic development. Finally, we will financially help to support the Navajo Community Junior College from which we hope to employ trained people. The plant and transmission system will represent a substantial tax base to the areas in which the facilities are located. But this brings up an interesting point, and emphasizes the social changes affecting utilities. People the country over are more than happy to have the assessed valuation of such a facility in their tax district, but nearly all want it to be located at the other end of the district-anywhere else-just away from them. It's also paradoxical that people want more and more power every year but they don't want to see the facilities for making it, or for transmitting it to their homes. Power plants have been thought of as bad neighbors that belch huge columns of thick black smoke which will cause soot and dust to settle, blackening the area and killing plants. We sincerely believe that we can and will make the Navajo Want a good neighbor-something to see and visit along with Page and Glen Canyon Dam, and the wonderful recreation areas in that vicinity. -25-