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<br />time whether it is more advantageous to the Basin Fund to <br /> <br />. <br /> <br />continue the wheeling arrangement or to build a Federal trans- <br />mission system in Utah. <br /> <br />8. The Bureau has been endeavoring to secure the best and most <br /> <br />economical transmission system for the C.R.S.P. It has been <br /> <br />negotiating in good faith with each of the Investor-OWned power <br /> <br />companies, recognizing the benefits of interconnections and <br /> <br />integrated operation of the transmission and giving careful <br /> <br />consideration to the wheeling proposals offered by the separate <br /> <br />companies. <br /> <br />DISCUSSION <br /> <br />On May 18, 1960, the Colorado River Storage Project power <br /> <br />marketing area and criteria were announced by the Secretary of the <br /> <br />Interior. The marketing area was defined by two divisions--the <br /> <br />Northern Division consisting of the States of Colorado, New Mexico, <br /> <br />utah and Wyoming, and the Southern Division consisting of the S~te <br /> <br />of Arizona, and a small part of the States of Nevada and California. <br /> <br />Under this criteria, and in accordance with the Authorizing Aot, <br /> <br />priority is to be given to preference customers. When load demands <br /> <br />of the preferenoe customers in the Northern Division grow to the point <br /> <br />that power energy, initially sold to preference customers in the <br /> <br />Southern Division is needed, such power and energy will be with- <br /> <br />drawn from the Southern Division down to a prescribed minimum. <br /> <br />~ Marketing studies and plans for development of the project's trans- <br /> <br />mission system are being made in accordance with these established <br />3 <br />