Show Western Resources WRAP WRAP-Up t P U P I t f Hoover dam power allotments r uy lit Vernal Express Washington Correspondent A Washington tug of war has developed between the states of Nevada and Arizona on the one hand and Califor Califor- California nia utilities on the other over the allot allot- allotment men ment of power from Hoover Dam In 1987 The federal governments government's current con con- contracts tracts to supply power to Hoover Dam allott s ends on May 31 1987 Hoover Dam was built by the Bureau of Reclamation a half century ago but the power bythe from Hoover Dam is marketed by the Western Area Power Administration in the Department of Energy DOE Its It's the first and largest dam on the Colorado For several years W AP A has worked to get an agreement on Hoover power allotments after present contractS contracts expire in 1987 mid As plans are In process to In in- in increase crea crease e the amount of power at Hoover planning the construction of addi- addi additional facilities and the purchase of bulk electricity requires a long lead time ThIs is a concern of all of the parties affected by the disposition of Hoover power all allor or of which have an interest in Westerns Western's concluding possible the matter as soon as ble the state of Nevada noted In are a re- re recent cent brief W AP A published a notice in the Federal Register on Aug 24 ordering utilities and other entities interested In Hoover power allotments to submit their applications to by Oct 1 The state of Nevada on Sept 14 filed a amo mo- mo motion tion for fora a preliminary injunction against In the US District Court of Nevada to block from enforcing such a deadline Arizona intervened on Nevadas Nevada's side W AP A backed off Robert L McPhail Administrator wrote to Nevada Attorney General Richard H Bryan on Sept 14 stating had been advis- advis advised ed by several customers of the difficulty difficulty ty they would have to Oct 1 1982 deadline applying for Hoover power allotments after mid 1987 Therefore I have withdrawn the Aug 24 notice of request for applications for power McPhail siad He said would publish another notice for power applications later after It has published final criteria regarding the allotments in inthe inthe the Federal Register That Is expected to be very late this year or early next yea year yeat t So on Sept 20 the state of Nevada withdrew Its fora for a preliminary In- In Injunction injunction junction altho it Is still suing the federal government on the allotment of Hoover Dam power in a suit filed on Aug 27 in inthe Inthe the same court Arizona intervened on Nevadas Nevada's side In that suit too on Sept 9 THEORIES ON BREAKING THE IMPASSE How does W AP A go about breaking the current current impasse over Hoover Dam power allotments Reclamation Commissioner Robert N Broadbent who is from Nevada thinks the many a attorneys Involved in the allot allot- allotment allotment ment of Hoover power should be sidelined sidelined ed Litigation wont won't solve the problem Broadbent told Western Resources Wrap Wrap-up on Sept n 27 We ought to knock all of the attorneys out of the room and let the operation agents of each of the entities negotiate a settlement Broadbent pointed out the Bureau of Reclamation has the responsibility for operating and maintaining Hoover Dam Damand Damand and its facilities Those involved should start to negotiate now before the Bureau of Reclamation steps in Broadbent said Broadbent's criticism was directed at atthe atthe the stable of well known and high pric- pric priced priced ed lawyers who are Involved in the Hoover Dam allotments a Who's Who among natural resource attorneys in this country Northcutt Ely the dean of the group now in semi retirement In Califor Califor- California nia who represents Los Angeles Water and Power Department Edward Weinberg former Interior Department Solicitor who represents Nevada Robert L McCarty who represents Arizona Jerome C who represents Metropolitan Water District of Southern California Broadbent said his own state of Nevada had set aside during the next year for its law suit against the government and others involved in the suit would also run up big legal bills It will make money for lawyers Broad Broad- Broadbent bent told But both and McCarty wold they had not been asked to negotiate nor had they become involved in negotiations In any way McCarty said he had sat in on a meeting that McPhail and Broadbent had with Hoover Dam power in April and that was the extent of his legal for Involvement McPhail told on Oct 1 worked for tor months to get the entities together hoping they would come to some kind of agreement themselves so that we could negotiate with them The strategy didn't work out It was hopeless McPhail said he concluded after the meeting that he and dbent Brol had with the key entities In April We are going ahead with our public about the proposed to criteria be us us- us used ed in determining the allotments allotments- to tobe tobe be held in Las Vegas on Nov 23 And we weare weare are goi going g to wait ait until after the election I to see it 11 people get more realistic In what they want McPhail told Both Gov Bruce Babbitt D-Ariz D who is running for election re-election and Nevada Attorney General Richard H Bryan who Is running on the Democratic ticket for governor of Nevada have been closely associated with the Hoover Dam allot allot- allotment ment problem Nevada and Arizona both claim a super preference to third one of all Hoover power now and in the future a stand that McPhail regards as unrealistic Weinberg told he had long favored negotiations to settle future allotments but he did not think McPhail's dispatch of Robert A Olson the area manager of Wf PA at Boulder City Nev to talk to all of the entities was the proper approach No one knows where stands Weinberg said in contrast to Nevada and Arizona which have opted for third one of Hoover Dam power each One of the reasons why It is difficult to get a consensus on Hoover Dam power allotments from the is that their Interests are all different Ronald Greenhalgh Washington liaison officer for told on Sept 29 So you have three different opInions as to what W AP A should do The Cal Califor- Califor California or nia entities who are want to con con- continue pretty much las as Is The California not have municipalities who want to be included after 1987 dont don't get any power now And Arizona and Nevada claim a super preference to third one of all Hoover Dam power about twice the amount that they now received Greenhalgh stated He said he was par sUrprised at Arizona's hard line about a super preference at Hoover Dam as Arizona already gets a big chunk of power from Parker and David dams on the Lower Colorado River and at the Navajo power plant near Page Ariz CHEAP POWER The battle over Hoover Dam power is isso isso so bitter as Hoover power is so cheap The Hoover dam power units have a nameplate capacity of kilowatts KW which the Bureau of Reclamation plans to upgrade to about 18 million kilowatts mainly by replacing and present generators at the Hoover power plant Hoover Dam power Is the lowest pric pric- pric priced ed power sold by W AP A Its wholesale rate is four mills per kilowatt hour KWH according to power ex- ex experts experts By contrast the rate for power generated at all Bureau of Reclamation facilities is 95 mills KWH wholesale and the wholesale power rate nation nation- nationwide nationwide wide is 31 mills KWH according to Bureau of Reclamation and W AP A data given to on Oct 6 Under the Boulder Canyon Project Act of 1928 and the Boulder Canyon Adjust Adjust- Adjustment ment Act of 1940 California get about 64 percent of the power from Hoover Dam while Arizona and Nevada get about 18 percent each The California entities percentage of firm energy Is as follows Metropolitan Water District of Southern California City of Los Angeles Southern California Edison Co 79 City of Glen Glen- Glendale dale 18 City of Pasadena 15 City of Glendale 08 With the contracts entered into by the government with the above entitles entities coming com com- coming ing to an end on May 31 1987 50 years from the date that energy first became available for delivery from Hoover Dam all of the above entities and several other California municipalities want a piece of the old Hoover power presently in- in installed in stalled plus a piece of the new Hoover power which the Administration wants Congress to authorize Hoover Dam is the flagship dam on the Lower Colorado River astride the river on the Nevada Arizona border near Boulder City Nev The Administration last year asked Congress to increase the current Hoover Dam authorization fr from m million to to a total of Of this sum would be used to Hoover power facilities and to improve visitor at the dam The Administration stated It Is anticipated that the major portion of the funding for will come from the states or public entities benefiting from the program Construction would be subject to agree agree- agreement ment among the three Lower Basin States Arizona Cal California ornia and Nevada evada on the entitlement to capacity made available thru th the program and the Secretary of Interior would re- re require re- re require quire these entitles entities to advance t to the United states to 50 maintain a reasonable con con- schedule Congress never acted on the legislation but W AP A put this prepayment pre proposal for upgrading the Hoover power facilities in its preliminary criteria on allotting Hoover Dam power on Sept 22 1981 In the law suit which Nevada filed against the federal government and joined in by Arizona the two states claim they have an absolute preference by law to third one of both the old and new Hoover Dam power They claim has no authority by law to ask for pre pre- prepayment prepayment payment from nor to ask for ap- ap applications ap- ap applications for future allotments based solely on the preliminary criteria So SoW W AP A is putting its criteria in final form before proceeding the e knowledge that Congress will set the rates for new Hoover power when It It gets fiets it COLORADO RIVER SALINITY PROPOSAL HUNG UP Washington The bill to amend the Colorado River Basin B sin salinity control program to authorize ad ad- projects and a study of a pipeline to move packaged coal from Western Colorado and Eastern Utah to Southern California for export has been quietly shelved for the year Hearings on this bill were held by the Senate Energy Committee on June 22 and the Committee then asked the Departments of Interior Agriculture and State to answer some specific questions I on the measure sponsored by Sen William L Armstrong R-Colo R and co- co cosponsored cosponsored sponsored by half of the Colorado River Basin State Senators We have never received any replies to our queries a Senate told Western Resources Wrap Wrap-up on Oct 6 Does that mean they are held up at the theOffice theOffice Office of Management and Budget he was asked Of course he replied Similar legislation as introduced by Reps Ray Kogovsek D-Colo D and Hank Brown R-Colo R and it is also in the legislative deep freeze Among the new salinity projects that would legislation have been by the legisla- legisla tion to reduce salinity in the Colorado River were Lower Gunnison Creek and Sin Sinbad bad Valley units In Col Col- Colorado orado the Uintah Basin unit in Utah and the Palo Verde Irrigation District In California It would have authorized a joint Industry government study on the feasibility of moving coal by saline water form the Basin for export |