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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 />- 3 - <br /> <br />capacity and energy from CRSP. Accordingly, in order for UP&L to receive an <br />allocation of CRSP power, the allocations of existing preference customers would <br />have to be reduced. Rather than being used on a more widespread basis, CRSP <br />power would merely be shifted from one set of consumers to another. <br /> <br />The testimony presented to Western in this proceeding amply <br />demonstrates that CRSP power is presently marketed at the lowest possible <br />rates. Numerous witnesses at the Public Comment Forum testified to the fact <br />that reductions in their allocations of CRSP power would result in drastic rate in- <br />creases due to the necessity of procuring electricity from alternative sources. <br />For example, the Manager of the Logan City Light and Power Department stated <br />that if CRSP power was not a part of their project, their yearly power costs would <br />nearly double. Tr. at 87. A representative of the Wellton-Mohawk Irrigation and <br />Drainage District in Southwestern Arizona stated that a loss of any hydro power <br />would result in a dramatic increase in cost to consumers. Tr. at 61. Morgan <br />City's rates would increase by up to 150% if it suffered any cut in CRSP power. <br />Tr. at 107. Mt. Pleasant's utility bills would increase by 61 % if it sacrificed CRSP <br />power. Tr. at 113. Without a CRSP allocation, Flowell Electric Associ~Yon's <br />rates for irrigation pumping would be raised by as much as 79%. Tr. at 132.- <br /> <br />In contrast to these enormous potential rate increases, UP&L has <br />only claimed that a potential 25% decrease in rates would result from an alloca- <br />tion of CRSP power. See Tr. at 101. As demonstrated in Section III of the R.W. <br />Beck Report, however, the availability of CRSP power would more likely result in <br />only a 5% rate decrease for UP&L customers. Whatever the rate reduction UP&L <br />claims it would seek if it received an allocation of CRSP power, that reduction <br />would be more than offset by rate increases for other consumers of CRSP power. <br />Therefore, it must be concluded that Western's current and proposed marketing <br />criteria result in the most widespread use of CRSP power at the lowest possible <br />rates, and that an allocation of power to UP&L would contravene this statutory <br />mandate. <br /> <br />B. Western's Marketing Policies <br />Promote The Public Interest And <br />The General Welfare Of Consumers <br /> <br />"It would be devastating for people like me if my power <br />rates were to increase at all . . .." (A widow from Lehi, <br />Utah, Tr. at 70-71). <br /> <br />"The projected power increase, if the city lost some of <br />the CRSP power, could put our business in jeopardy <br />. . .." (A meat packer from Hyrum, Utah, Tr. at 84). <br /> <br />!y Additional examples of rate increases that preference customers would be <br />forced to initiate if their CRSP power allocations were reduced are contain- <br />ed in Section II of the R.W. Beck Report. <br />
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