Evening star., 1953-08-20
By John v. Horner

enW1ciated by the Eisenhower
administration emphasizing
that "local' interests must fill
the key role in supplying elec-
tricity to the Nation-contains
no real surprises.
The statement released Tues
day already has stirred criticism
in some quarters but it is hardly
more than a formal summary
of views expressed repeatedly in
words and deeds by high ad-
ministration officials.
These include Secretary OF In
terror Mckay, Assistant Secre-
tary of Interior Fred G. Aandahl
and President Eisenhower.
himself.
To many persons who favor
the administration policy. it re-
presents another step toward the
Republican goal of de-emphasiz-
ing Federal Government opera
tions in favor of stronger local
control over local affairs.
Two Major Objectives.
In brief, the new power policy
has two significant objectives:
1. Limit Federal construction
of dams for hydro-electric prof.
ects.
2. Sell Federally generated
electric power through existing
private utilities companies.
The administration does not
propose to end all Federal con-
struction of dams. It will con-
slider supporting some multi
purpose projects which are too
big for local public or private
enterprise. It also expects to
back some single-purpose hydro
electric plants that are closely
associated with multi-purpose
projects.
Will Guide 4 Agencies.
The power policy announced
Tuesday is for the guidance of
four agencies Of the Interior De-
partment. These are the Bon
neville Power Administration,
the Bureau of Reclamation, the
Southwestern Power Administra-
tion and the Southeastern Power
Administration.
These agencies sell Cat whole
sale priceS) practically all of the
federally generated electrical
energy in the country, except
for that produced by the Ten
nessee Valley Authority. (TVA
operates under separate law0
The policy deals with the
generation, transmission and
marketing of electrical energy.
Within a matter of days the
Interior Department intends to
give the four agencies de-
tailed instructions on marketing
criteria.
Sets Forth Philosophy.
The policy statement gives this
administration philosophy on
public power:
The primary responsibility for
supplying power needs of an area
rests with the people locally
The responsibility of the De-
partment Of the Interior is to
give leadership and assistance
in the conservation and wise
utilization of natural resources.
"The department does not as
sumo that it has the exclusive
right or responsibility for the
construction of dams or the
generation, transmission and
sale of electric energy in any
area, basin or region"
Hence, the Government will
not oppose the construction of
facilities which local interests
can provide for the development
of natural resources. Insofar as
the administration is concerned,
these local interests may be
either public or private.
Aandahl Defends Policy.
In the words of Assistant Sec
retary Aandahl:
I'VE will encourage construc-
ton of multi-purpose dams with
a maximum of hydro-electric
generating capacity and will
also support some single-pur-
pose hydro-electric plants that
are closely associated with and
fit in well with multi-purpose
projects"
Mr.. Aandahl said this policy
will throw greater responsible
ties to the localities and keep
away from the concept of Fed
eral monopoly of the electrical
business.
The administration contends
that previous policy, formulated
by the late Secretary of Interior
Harold Ickes, promoted Federal
monopoly.
Cool Toward CO-opS.
The administration will con-
tinue giving preference, as re-
quired by law, to public bodies
and co-operatives in disposing
of the electric energy generated
at Federal plants, officials SAID.
But it is going to be cool
| toward the formation of local
cooperative groups to organize
/ for the purpose of buying the
power and distributing it at re-
tail.
AS Mr.. Aandahl puts it:
I'VE do not encourage or dis
courage the development of local
public retail sales agencies for
power. We recognize public re-