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<br /> <br />CREDA <br /> <br />COLORADO RIVER ENERGY DISTRIBUTORS ASSOCIATION <br /> <br />Stanley K. Bazant, President <br />clo Plains Electric G&T <br />2401 Aztec Road NE <br />Albuquerque, New Mexico 87107 <br /> <br />Consumer-owned electric systems learned on April 15, 1983 that the <br />Utah Power and Light Company (UP&L) had launched an unprecedented attack on <br /> <br />the laws governing the sale of federal power. Aiming their sights on the Colorado <br /> <br />River Storage Project or "CRSP", UP&L mounted a campaign to divert CRSP <br /> <br />power from consumer-owned systems in Arizona, Colorado, Nevada, New Mexico, <br /> <br />Utah and Wyoming to UP&L. If UP&L is successful, consumer-owned systems <br />would lose two-thirds of their CRSP power. As a result, these public systems' <br />power costs would jump by as much as $100 million per year. Some would face <br /> <br />rate increases of up to 150%. <br /> <br />Once the consumer-owned systems realized the dimension of UP&L's <br /> <br />attack, CREDA commissioned a full-scale review of UP&L's theories and their <br /> <br /> <br />impact. The results of that review accompany this report. <br /> <br />CREDA's review of the legal and engineering claims underlying <br /> <br />UP&L's attack demonstrate that it is completely frivolous. For example, UP&L's <br />rates ~ go down by 25% as it claims. Even under the most optimistic of <br />assumptions, the reduction would fall far short of this figure and would more <br />likely be only 5%. It is a fact that any such reduction would be at a cost as high <br />as $100 million per year to consumer-owned utilities. It is also a fact that many <br />of these systems would have to drastically raise rates to "buy" UP&L's acquisition <br />of CRSP power. Following are a few examples: <br />