The people's voice. [volume] (Helena, Mont.) 1939-1969, 1946-02-15
FORT PECK POWER

ton of costs made by the Fedora
Power commission. In computing the
cost of electric energy developed from
water power created as an incident
to and a by-product of the construc-
ton of Fort Peck project, the Federal
Power commission may allocate to
the costs of electric facilities such a
share of the cost of facilities having
joint value for the production of cleo
trio energy and other purposes as the
power development may fairly bear
as compared with such other pur-
poses"
The contract provides that, the
United States will supply electric serv-
ice to the Montana-Dakota Utilities
company for resale to it's customers.
The contract further provides that the
company shall pass on to its custom
ers, through appropriate rate reduc-
tions, any and all savings, as de-
termined by the company with the ap-
prevail of the secretary of the interior,
which accrue to the company by rea-
son of the purchase of energy under
the contract. The company agreed to
make such rate reduction effective
through new or revised rate sched-
ules within 80 days after delivery of
energy under the contract AS a re-
suit of this provision substantial rate
reductions have already been made.
In addition the Montana-Dakota Util-
tiles company under provision of the
contract has granted license to the
United States to transmit electric en-
ergy over its electric transmission
system, to the extent that it has ex-
cess available capacity in it's trans
mission system. The electric energy
to be transmitted by the United States
over the transmission system of the
contractor shall be limited to such
energy as is necessary for the follow
ing classes of customers of the Unit |
ed States:
(a) Irrigation and drainage pumping
plants operated by the United States
or by water users or irrigation dis.
tricts operating irrigation projects |
constructed or financed in whole or
in part by the United States.
OBJ Cooperative project financed in
whole or in part by the Rural Elec-
trification administration of the Unit
ed States and other non-profit organ
lzations which purchase electric en-
ergy for resale to farm and /or rural
(c) War plants or establishments
financed in whole or in part by funds
If the United States and having
formal maximum demand of 1000 kilo-
watts or more.
The Montana-Dakota Utilities COM
)any's transmission lines are now be-
ng used to transmit government pow
IF developed at Fort Peck to some
irrigation and REA projects Negoti-
ltions are being carried on with other
potential customers to whom the gov
my transmit energy over the
lines. The contract further
provides for the cancellation of GER ]
ain irrigation pumping contracts and
ural electric service contracts be- q
ween the Montana-Dakota Utilities 4
ompany and others whenever the I
United States shall have entered into 7
ontracts with them for service by
he government In summary, the
ontract with the Montana-Dakota {
Utilities company does not in any r
Tay restrict, but rather enhances, the \
Availability of power to those enti- a
ed to preference under the law.
The extent to which the provisions =
the Fort Peck act can be carried !
ut is dependent upon appropriations =
Y the congress. AS you no doubt 7
now funds have recently been pro- :,
ded for construction of the Fort 4
and Williston-Garrison ..
am high-voltage transmission lines. I,
unds have also been provided for v
itiating construction of the Glendive-
lies City transmission line and re- q.
ted facilities to supply irrigation n
lmping and commercial loads We e.
i'll continue to seek funds for extern n
w
e earliest possible date. The facili- a
IS which we are now proposing to n,
lid should be completed as soon as
'ssible after the second Fort Peck n,
nerating unit has been installed and
aced in operation. This unit will be
ted at $1,000 kilowatts and is SEIZED
ed for completion in December 1916.
You have also inquired about the N
lie of Grand Coulee power to the
'uthern California Edison company. tn
and Coulee power is marketed by sc
e Bonneville Power administration; m
wever, none of this energy is sold
the Southern California Edison COM
ny. This company pursuant to the
'ulder Canyon Adjustment act, OBJ Pl
ms power generated at Boulder dam be
der special contract. | am en-
'sing for your information copy
the Fourth Annual Report of Oper-
ions Under the Boulder Canyon Fl