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?
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