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<br />Basin Project Act, however, states preferences for uses ocher than power <br /> <br />37 <br />production. <br /> <br />For several reasons, electrical generation is An important option coday. <br /> <br />Upper Basin power generation can justify dams that will provide more storage <br /> <br />upriver and return significant reVenues. Lower Basin interests may also favor <br /> <br />such development as prospective customers of the power, <br /> <br />Questions are rife as to the rights and obligations of the two basins <br /> <br />with respect to power generation and the preferences expressed in the law of <br /> <br />the river. Can the Lower Basin demand delivery of its share of water when it <br /> <br />is not needed for agricultural and domestic uses so that it can be used for <br /> <br />hydroelectric power generation? Does it matter whether such deliveries will <br /> <br />result in reduction of Upper Basin agricultural and domestic uses or whether <br />38 <br />they can be accommodated simply by releases of stored water? Can the Lower <br /> <br />Basin demand that excess stored waters (over the compact entitlement) be deliv- <br /> <br />d 1 1 f ' ,39 <br />ere so e y or power generatlon. <br /> <br />Can the Upper Basin have credit against <br /> <br />its compact obligation for any excess releases made to generate power but not <br /> <br />demanded for Lower Basin uses? <br /> <br />Water users who are obliged to repay development costs for the dam system <br /> <br />may favor power generation because pover revenues are ~1C::"::Il~apPlied to <br /> <br />reduce the repayment obligation. Yet because some of the largest water cus- <br /> <br />tomers on the Colorado use vast amounts of power to pump their water to dis- <br /> <br />tant locations, there is no clear division of interests. Indeed, influential <br /> <br />water users press to keep power prices low. For instance, the Metropolitan <br /> <br />Water District (MWD) which uses more of the Lower Basin's share of water than <br /> <br />40 <br />any but the vast combined agricultural interests of the Imperial Valley, is <br />41 <br />also one of the largest power consumers. It has much more to gain from a <br /> <br />contract for extremely low-priced power than from infinitesimal reductions in <br /> <br />- 14 - <br />