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<br />THE WALL STREET JOURNAL
<br />14 Wednesday, August I, 1984
<br />
<br />C'
<br />
<br />Congress Extends
<br />Low-Cost Power
<br />From Hoover Dam
<br />
<br />By DENNIS FARNEY
<br />Staff Reporter of THE WALL STREET JOURNAL,
<br />WASHINGTON - The Senate, rejecting
<br />charges of a federal "giveaway," approved
<br />30 more years of low-cost hydroelectric
<br />power from Hoover Dam to a group of
<br />Southwestern public utilities.
<br />The measure, given final congressional
<br />approval on a 64'34 vote, extends unIil2017 a
<br />5O'year contract that otherwise would have
<br />expired May 31, 1987, 11 also auIhorizes $77
<br />million in improvements to the giant dam,
<br />including a roughly one-third increase in its
<br />hydro'electric generating capacity,
<br />The improvements. whose cost Will be
<br />borne by users of Hoover Dam power. were
<br />never controversial. But the 30'year con-
<br />Iract extension prompted a filibuster from
<br />Sen, Howard Metzenbaum (0.. Ohio), who
<br />asserted that it subsidizes Southern Califor'
<br />nla, Ariwna and Nevada at the expense of
<br />the ,rest of the nation, But after the Senate
<br />voted Monday to end the filibuster, an angry
<br />Sen. Metzenbawn threw in the towel yester-
<br />day,
<br />"This bill sets us on a course which could
<br />cost the Treasury $6 billion over the next
<br />10 years, and countless tens of billions
<br />more over the long term," he maintained.
<br />Under the contract, public utilities in the
<br />three states have been getting electricity at
<br />less than one-half cent a kilowatt hour, far
<br />below the cost of power from other sources.
<br />This price reflects, in part, the relatively
<br />low amount required to reimburse the gov-
<br />ernment for building the dam in the 1930s,
<br />Although the price will rise modestly under
<br />the extended contract, it will remain far be-
<br />low market _prices, Estimates of the Trea-
<br />sUlfs IO-year revenue loss under the con.
<br />tract, compared with the higher market
<br />prices it might have imposed, range from
<br />$3,5 billion to Sen, Metzenbaum's $6 bi!'
<br />lion,
<br />In May the House rejected a proposal
<br />that Hoover power be auctioned to the high,
<br />est bidders once the current contract ex,
<br />pires, Sen, Metzenbaum didn't go that far,
<br />merely arguing against a long-term contract
<br />extension until Congress can study the mat-
<br />ter more thoroughly, Nevertheless, his pro,
<br />posal aroused concern. particularly among
<br />Western and Southern senators, that raising
<br />the price on Hoover power would set a pre,
<br />cedent for other long,term hydroelectric
<br />power contracts set to expire in coming
<br />years,
<br />"Ask not for whom the bells tolls, Friend,
<br />it will toll next for thee," Sen, Pete Wilson
<br />IR., Calif,), an opponent of the Metzenbaum
<br />proposal, warned his colleagues,
<br />President Reagan Is expected to sign the
<br />measure.
<br />
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