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<br /> <br />8 <br /> <br />icoLORADO RIVER STORAGE PROJECT <br />, <br /> <br />,The company'submitteda.new offer for wheeling by letter of Febru- <br />ary 15,1962, by which it would accept power scheduled by the Bureau <br />of delivery to preference customers in Utah and make such power avail- <br />able to these cU$tomers to the eame degree and extent delivery could <br />have been made, over the all-Federal modified system had such system <br />been constructeq, A similar offer was also made by Oalifornia Pacific <br />Utilities 00, fo~ delivery to preference customers in its territory in <br />southwestern Utah, The Oalifornia Pacific Utilities 00. would take <br />the power from 'the Utah Power & Light 00., at 138 kilovolts at the <br />interconnection between their systems at the Iron-Beaver Oounty line. <br />The Wheeling charge would be ,0.82 mills per kilowatt-hour based <br />on an annuallofld factor of 58% percent, equivalent to a rate of about <br />$<1.20 per kilowa;tt-year. The wheeling charge after an initial period <br />of 50 years, WOUld be reduced to cover only ad valorem taxes, and <br />operation, maintenance, and replacement costs as actually incurred; <br />estimated by the companies to be about 50 percent of the initial charge, <br />The Utah Power & Light 00. also would take power from the Bureau <br />system at Shiprpck, N. Mex., and Montrose, 0010" for the Western <br />Oolorado PowerlOo. in exchange for a like amount of power from the <br />company delivel!ed to the Bureau's customers in north-central Utah, <br />There would be 110 wheeling 'charge on the exchange power delivered <br />to preference cU$tomers by the company. <br />It is estimate(l the cost fof whecling under the offers of the Utah <br />Power & Light: 00. and the, Oalifornia Pacific Utilities 00. would <br />average about $785,000 annUlllly during the power payout period for <br />the storage project, ;, <br />Acceptance of' thesc offers would eliminate construction of Federal <br />lines estimated to cost about $22 million having an average annual <br />cost of about $1)500,000 during the power payout period, The aver- <br />age annual sllVings in transmission costs of about $715,000 would cor- <br />respondingly enlj.ance the basin fund. <br /> <br />ARIZONA PUBLIC SERVICE 00. <br /> <br />SUMMARY OF NIjlGOTIATIONS ON TRANSMISSION ARRANGEMENTS AND <br />WHEELING PROPOSALS <br /> <br />'fhe Arizona Bublic Service 00, in its initial proposal in 1960, which <br />was rejected by Ithe Department, offered to construct three 230-kilo- <br />volt lines from lLtlen Oanyon to Phoenix and deliver storagc project <br />power by trans~' ission to Pheenix and by displacement at its FeuI' <br />Oorners steampl n t. ,The wheeling charge would be 1.177 mills er <br />kilowatt-hour on. all energy delivered or $6,74 per kilowatt-year (plus <br />taxes) for the y~arly peal IOf,d, The average annual wheeling pay- <br />ment, using the ,kilowatt-hour rate, was estimated to be $3,550,000 <br />during the power payout period for the storage project. <br />In a subsequent off"r January 23, 1962, the company would con- <br />struct two 34,5-kilovolt lines from Glen Oanyon to Phoenix (Pinnacle <br />Peak) and deliv~r storage project. power by direct transmissio,n to <br />phoenix. and by! exchange at Four Oorners. The wheeling. charge <br />would. be $5,39 per kilowatt-year (plus taxes). for a specified yea.rlY <br />maximum simult~neous peak load at Pinnacle Pcak and Four Oorners. <br />At the end of tlj.e 50th year or the period required to amortize the <br />