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WSP03019
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Last modified
1/26/2010 12:48:14 PM
Creation date
10/11/2006 11:29:50 PM
Metadata
Fields
Template:
Water Supply Protection
File Number
8220.100.50
Description
CRSP - Power Marketing
Basin
Colorado Mainstem
Date
10/1/1983
Author
CREDA
Title
Defending the Public's Right to Public Power - A Response to Consumer-Owned Utilities to Utah Power and Light's Application for CRSP Power
Water Supply Pro - Doc Type
Publication
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<br />. <br /> <br />I. INTRODUCTION <br /> <br />In "CRSP Power: A Legal Birthright of Federal Preference Custo- <br />mers," the Memorandum of Law and Policy submitted to the W1tern Area Power <br />Administration ("Western") as part of the written comments 1 of the Colorado <br />River Energy Distributors Association ("CREDA"), CREDA addressed the legal <br />aspects of Utah Power & Light Company's ("UP&L") challenge to the preference <br />laws. In its Memorandum, CREDA demonstrated that Western's proposed mar- <br />keting criteria for the post-1989 sale of Colorado River Storage Project ("CRSP") <br />power are consistent with the requirements of the preference laws. Furthermore, <br />CREDA demonstrated that UP&L's constitutional challenge to the preference laws <br />is unsound. <br /> <br />For UP&L to ultimately prevail on many of its legal claims, it would <br />have to make certain factual showings. For example, UP&L has asserted that <br />Western has failed to comply with the statutory mandate that it market CRSP <br />power on a widespread basis. Although the definition of "widespread" may involve <br />a question of law, whether or not the power has been allocated on a widespread <br />basis turns on a factual showing. Now that the Public Comment Forum sponsored <br />by Western has been completed, an analysis of the transcript of that proceeding <br />reveals that many of UP&L's legal claims which depend upon facts have not been <br />borne out by the record. <br /> <br />UP&L has repeatedly contended that Western's application of the <br />preference laws fails to carry out the statutory ma~9ates of those laws and of the <br />Department of Energy ("DOE") Organization Act. - Specifically, UP&L claims <br />that Western has disregarded the following aspects of the preference laws and the <br />DOE Act: the principle that Western is to sell power to encoVJtge the most <br />widespread use thereof at the lowest possible rates to consumers; - that it is to <br /> <br />1J <br /> <br />"Defending the Public's Right to Public Power: A Response of Consumer- <br />Owned Utilities to Utah Power And Light's Application for Colorado River <br />Storage Project Power" submitted by CREDA to Western on October 31, <br />1983. <br /> <br />y <br /> <br />See UP&L's April 15, 1983 submission to Western at pages 5-6; Testimony of <br />Donald B. Holbrook on behalf of UP&L at the October 6, 1983 Public Com- <br />ment Forum at Tr. 234; and Statement on Behalf of Utah Power & Light <br />Company, submitted as an exhibit at the Public Comment Forum, at pages <br />3-4. <br /> <br />Y The full language of this statutory mandate is "most widespread use thereof <br />at the lowest possible rates to consumers consistent with sound business <br />rinci les . . .." Section 5 of the Flood Control Act of 1944, 16 U.S.C. <br />25s. Although UP&L chooses to ignore the fact that Western is required <br />to follow sound business principles in its marketing of CRSP power, the <br />(Con't) <br />
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