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<br />o <br />." <br />- <br />M <br />r;: <br /> <br />'~" ; J~ <br /> <br />"As you are aware,~~e coordination of activiti~s 3~00ver Powerplant is <br />considerably more complex than that of similar hydroelectric facilities because <br />the plant is presently operated by two agents, each of which operates certain <br />portions of the plant to meet the requirements of the Hoover power allottees. <br />The Hoover Powerplant is separated into several sections and each allottee has <br />a section of the powerplant dedicated for its sole use. <br /> <br />"There are a number of other issues to be resolved among the present <br />allottees, operating agents, and the Federal Government relative to the <br />increased capacity which would be made available. Because of these complexities <br />and the proposed post-1987 power marketing program of the Western Area Power <br />Administration (Western), the use of non-Federal financing at Hoover Powerplant <br />requires further indepth discussion among all the interested parties before any <br />definite conclusions can be reached. <br /> <br />"However, I am encouraged by your :I.nterest and I have instructed the <br />Commissioner of Reclamation to meet with the Hoover allottees, operating agents. <br />and Western on September 17, 1981, in Boulder City, Nevada, to discuss the <br />concepts and explore further the possib:l.lities of non-Federal capital being used <br />to underwrite Reclamat:l.on's design, construction, and modification at Hoover <br />Powerplant. The details on the location and time of the meeting will be forth- <br />coming." <br /> <br />The Arizona-Nevada proposal is for adding a new Hoover Dam powerplant, <br />plus uprating some of the existing generator units. Financing would be <br />through the sale of State-issued bonds, which would be repaid with revenue <br />from added peak-demand po~er sales. <br /> <br />The Arizona-Nevada proposal was outlined in a letter to Secretary of the <br />Interior James Watt signed by Lester S. Ormsby, Administrator of the Arizona <br />Power Authority, and by Duane R. Sudweeks, Administrator of the State of Nevada <br />Division of Colorado River Resources. Their letter said they have applied to the <br />Federal Energy Regulatory Commission for a preliminary permit enabling them to <br />complete feasibility studies needed to apply for a Federal license to modify and <br />add to the Hoover Dam powerplants. <br /> <br />California, Arizona, and Nevada authorities have not been able to agree <br />on previous approaches involving Federal appropriations for increasing Hoover <br />Dam's peak power capacity, Assistant Secretary Carruthers noted. Those three <br />States share allotments of the dam's power output under a formula set by law. <br /> <br />In his letter to R. O. Snyder, General Manager of the Public Service Depart- <br />_ment of the City of Burbank, California, Carruthers noted Snyder's "concerns about <br />whether the Arizona and Nevada proposal would equitably resolve the differences <br />between the Stut'-'s or maximize the benefits from the resources." <br /> <br />x <br /> <br />x <br /> <br />x <br /> <br />2 <br /> <br />IW~ :riill\-J.i, <br />