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make a final decision either confirming and approving or disapproving the proposed rate adjustment. The complete procedures for rate adjustments are printed in the Federal Register and are included herein in the section entitled "Procedures for Public Participation in Rate Adjustments." III. PROJECT DESCRIPTION The Rio Grande Project initially was authorized as an irrigation proj ect on the Rio Grande in south-central New Mex i co and west Texas by the Act of February 25, 1905 (Ch. 798, 33 Stat. 814). Elephant Butte Dam, located 125 miles north of El Paso, Texas, was completed in 1916. The construction of Caballo Dam, a flood control and reregulating structure located downstream from Elephant Butte, took place in accordance with the Convention on Rectification of the Rio Grande, February 1, 1933 (48 Stat. 1621) and the Acts of August 29, 1935 (Ch. 805, 49 Stat. 961) and June 4, 1936 (Ch, 500, 49 Stat. 1463). The Caballo Dam was completed in 1938. The act of August 9, 1937 (Ch. 570, 50 Stat. 564) allowed for power facility construction and provided for the application of power revenues toward repayment of the project. The Elephant Butte Powerpl ant and a 115-kV transmission 1 ine to Las Cruces, New Mexico were constructed between 1938 and 1940. Additional transmission features were added between 1941 and 1952. No major additions were made after 1952 and none are planned. In 1973 the Deming-Central, New Mexico transmission line and Central Substation were sold. In 1979 the remaining 115 kV transmis- sion system and substations were sold, except the Hot Springs Substation. The present power system consists of the Elephant Butte Powerplant, rated at 24.3 MW capacity, the Elephant Butte Switchyard, and the Hot Springs Substation (the sale of which is under negotiation). The project is operated primarily as an irrigation water supply project, and power gen- eration is incidental and secondary in priority. The project power system is connected to the system of Plains Electric Generation and Transmission Cooperative (Plains) at the Elephant Butte Switchyard and at the Hot Springs Substation. This system, along with other power systems operating i~ the area, operates under the terms and conditions of a power pooling agreement effective October 1956. Map No. X-500-6 attached hereto as Figure 1 shows the powerplants and trans- miss ion faci 1 it ies in the state of New Mexico as of October 1977. The transmission lines (red) and substations (black) south of the Four Corners area and shown on the map as USBR facilities are presently owned and oper- ated by Plains, except for the Hot Springs Substation (labelled "Truth or Consequences" on Figure 1). Present customers for the project power are Plains and the City of Truth or Consequences, New Mexico (TorC). During the first 10 years of operation (1941-1950), when the water supply was adequate, tne project repaid $1,696,207 of the power invest- ment and $1,004,662 in interest on the investment. Beginning in 1951 and OJ14.o 5