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<br />01444 <br /> <br />. Bureau of Reclamation <br /> <br />The Bureau of Reclamation (USBR) has serious concerns over WAPA's "Will Be" <br />plan. They outlined their concerns in many WAPA customer meetings and in many <br />letters to WAPA. WAPA's administrator, through the past Commissioner of <br />Reclamation, has effectively silenced most of the USBR opposition. It is anticipated <br />that the new USBR Commissioner Mr. Eluid Martinez will have a much different <br />view than his predecessor Mr. Dan Beard. He is expected to have serious concerns <br />over any plan that would have a negative impact on water and power interests in the <br />Upper Basin. The Upper Basin States should give past CRSP USBR concerns <br />serious consideration. <br /> <br />Issues raised by USBR are outlined in the attached June 30, 1995-letter to Mr. J.M. <br />Shafer. Other issues yet to be raised by USBR are environmental concerns at Glen <br />Canyon, Aspinall, and Flaming Gorge. It is expected that the Glen Canyon <br />Environmental Studies Office in Flagstaff, Arizona would have considerable input on <br />the potential negative impacts of WAPA's plan on the Grand Canyon and other river <br />systems. <br /> <br />The handcuffs need to be taken off USBR by the Commissioner. USBR concerns <br />need to be heard and responded to by WAPA. If this delays WAPA's plan then the <br />result will be a better plan, One of WAPA's letters to USSR accused them of having <br />"paralysis analysis." If USBR has "paralysis analysis" it seems hard to believe that <br />USBR will receive an "Innovations in American Government Award for Reinvention of <br />the Bureau of Reclamation" from the Ford Foundation this week. USBR reorganized <br />by Project. It would appear that USBR knows what it takes to reorganize. <br /> <br />When the future of Upper Basin water and power interests could be changed and <br />possibly negatively impacted, WAPA must take USBR's and other Upper Basin <br />interests concerns seriously. So far WAPA has only given lip service and in the case <br />of USBR has effectively silenced them through bureaucratic intimation. <br /> <br />. WAPA continues to insist that its "will be" plan will not reduce Upper Colorado River <br />Basin Fund revenues <br /> <br />In that fiscal year that ended in Sept 1994, Loveland and Phoenix charged CRSP <br />approximately $7.0 million for services performed. Of this charge only $419,000 was <br />for services that were direct charged (actually performed and therefore charged). <br />The remaining $6.6 million in charges were for overhead, and for phantom services. <br />These charges account for 5% of the CRSP yearly revenue requirements. WAPA's <br />management has been informed about these inflated costs by customer and <br />employees on numerous occasions and has yet to act on them. A customer asked <br />WAPA during a WAPA roll-out meeting about these charges and was told that they <br /> <br />2 <br />