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1999 Friends of Lake Powell, Inc.
www.lakepowell.org
P.O. Box 7007
Page, AZ 86040 USA
(928) 645-2741  Fax: 928-353-2227

OPENING STATEMENT OF MICHAEL S. HACSKAYLO
ACTING ADMINISTRATOR, WESTERN AREA POWER ADMINISTRATION
DEPARTMENT OF ENERGY

Good morning, Mr. Chairman and members of the Subcommittees. My name is Michael Hacskaylo. I'm Acting Administrator, Western Area Power Administration. And I appreciate the opportunity to appear before you today to discuss the power-related impacts of draining Lake Powell. I have submitted a written statement for the record. If I may, I will summarize my comments.

The power plant at Glen Canyon Dam has a maximum operating capability of 1,356 megawatts. That is approximately 75 percent of the total electric capacity of the Colorado River Storage Project.

Western Area Power Administration markets that power to over 100 municipalities, rural electric cooperatives, irrigation districts, and Federal and State agencies in the States of Utah, Colorado, New Mexico, Arizona, Nevada, and Wyoming.

In fiscal year 1996, of the $126 million of total power revenues from the Colorado River Storage Project, Rio Grande Project and Collbran Project (known collectively as the Salt Lake City Area Integrated Projects) we have received about $93 million of that amount from sales of Glen Canyon Dam power. If the Glen Canyon power plant is no longer available, it is highly likely that the capacity that is lost would be replaced by fossil-fired power plants. Certainly, conservation might help in reducing some of that lost capacity, but additional fossil-fired generation capacity would need to be utilized, we believe.

If the Glen Canyon power plant is no longer available, there would be adverse financial impacts on our power customers. There would be rate increases, we believe, because of the replacement of the Glen Canyon Dam power with what we expect would be higher cost power. Those rate impacts would vary considerably depending on how much power our customers buy from Western Area Power Administration and the cost of replacement power.

There also would be impacts to the Federal Treasury if the power plant is no longer available. Through fiscal year 1996, power revenues have repaid $537 million of the cost allocated to power for the Colorado River Storage Project.

Right now, we have $503 million left to repay. In addition, there is $801 million of cost allocated to irrigation. Without revenues from the power plant, we would have a very, very difficult time in ensuring repayment.

In closing, we estimate that over the next 50 years, if the power plant is not available, if we are not able to sell that power, there would be a loss of $1.3 billion from power revenues not collected, not available to the Federal Treasury.

That is the end of my summarized statement. I would be happy to answer any questions.

For more information contact. friends@lakepowell.org