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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (May 6, 1958)
12 MAIL TRIBUNE, MedforJ, Oregon, Tuesday, May 6, 1958 Dogged-Down Negotiations by Power Firms Being Investigated t- iff i By A. ROBERT SMITH -Mail Tribune Correspondent - Washington An investiga tion of the bogged down nego tiations between Idaho Pow er Co. and B o n n e v ille -Sv' wl Power 'Admin istration over a pro posed power e x change agree ment i5 hpinff A X'fcVnl bloc of pro- - Wok $'isJ Hells Canyn ' a. Eobtsmiui senators from the Northwest states. The Senate Interior Committee has scheduled hearings on the is sues May 14 and 15. The com mittee has been kept inform ed by Bonneville officials of demands which Idaho Power has been making and which the Interior Department has been resisting. - The power exchange being -.worked on would integrate "the Brownlee and other units of the Idaho Power system with the Bonneville system through a main transmission -line from the Snake river to the Bonneville system in east ern Oregon. The Federal Pow er Commission stipulated that such an integration was nec essary. Idaho Power needs extra power in the summer for "peaking purposes when irri gation pumping is making a heavy drain on its system. ; BPA usually has surplus ener gy at this time. BPA needs extra power for peaking in the winter, when Idaho Pow er usually has a surplus. Com mittee aides have received estimates that from 120,000 to 200,000 KW of firm power would.be created by such an arrangement, instead of each separate system having sea sonal surplus dump power. Reason for Failure Reason for the failure to reach agreement is reported to be Idaho Power's insistence on receiving 2Vz kilowatts of Bonneville power for every kilowatt the power company supplied to the Northwest Power Pool from its system. This is one of the points on which the Senate committee plans to focus its attention, for Northwest senators con sider this would give the utility a subsidy. Estimates of the size of the subsidy have been computed by those who have opposed Idaho Power's plan for three small dams instead of the high federal dam. They put it at something like $8 million an nually, or $400 million over the 50-year life of the dam license. The high federal dam would cost about that amount. Firit Right Another point of inquiry will be the request that Idaho Power is understood to have made to get first right or preference on all increased generation at downstream fed eral dams The Dalles, Mc Nary, John Day, Ice Harbor etc. which would be at tributed to the storage and river control provided by the company's Brownlee dam. Interior officials are under stood to object to this request on grounds it would violate the preference clause which gives public power agencies first call on federal power. Interior is also reported to be willing to agree to a pow er exchange only if there is a parity of value on the kilo watts that flow between the two systems. This would rule out any subsidy to the Boise utility. It is willing to make an equitable division of the benefits derived from inte grating the system. Two other points . are ex pected to be raised. 1. Rural electric co-ops in southern Idaho have wanted to get Idaho Power to wheel cheap power from federal dams to them. Rep. AI Ull man has suggested that any power exchange agreement worked out should include a requirement that Idaho Pow er agree to wheel government power to preference custom ers in the area. , 2. Idaho Power has plans to sell some of its power to Utah Power and Light, from whom it has been buying steam power recently. Some senators want to explore the question of whether this hook up in addition to the inter change between Idaho and BPA would result in the ex port of Columbia power. (33W5? ma YEARS 0Ld ;psffi Straight OURBON 05 3? 45 QT. Code No. 1451 SR60 I 145B M 560 AL PINT MmSm Code No. f I Ir old 3 TT 1!QUAKE OLD ll BOURBOH" f . 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