large amounts required at the time it was needed, and to do so because this committee provided us with adequate appropriations and flexibility to meet the requirements of war loads in the area.

This war job has been done on a sound financial basis despite the fact that these war loads were served at the lowest wholesale power rates in the country. At December 31, 1944, total revenues from power sales were $52.299,000. This was adequate to repay to the Treasury the total power operating expenses to date of the Administration, Bonneville Dam and Grand Coulee Dam; to provide for interest expense on the power facilities; and to leave over $20,000,000 to cover possible war-contract adjustments and adjustments resulting from final determinations on allocation of the joint costs of Bonneville and Grand Coulee Dams, and to repay the Federal investment. The Bonneville Power Administration has entered into an agreement with the Bureau of Reclamation under which power from Grand Coulee Dam will pay approximately three-fourths of the total estimated cost of the entire Grand Coulee power and reclamation project even though less than one-third of this total is properly allocated to power cost.

In war contracts the Administration has provided partial protection of its investment in the form of cancelation charges. With these charges and the net surplus we are earning during the war period the Administration expects to weather the post-war cutbacks and, with a vigorous marketing program, to rebuild its load. This job requires advance marketing work and transmission lines into new load areas-not only to rebuild load but to develop new loads to make feasible new projects already authorized by Congress which will provide new opportunities for free enterprise and jobs for returning soldiers and war workers.

The Federal Government's Columbia River power system is on a sound paying basis, and it has saved the Government millions of dollars in the cost of conducting the war. As compared with the cost of power for most of the Government-owned aluminum plants supplied with fuel-generated energy, Columbia River power has saved the Government at least $45,000,000 in the cost of aluminum produced in the Northwest and many times this amount in its influence on the cost in the Nation as a whole, and this saving is growing daily. Army and Navy establishments served by the Administration save at least $350,000 per year as compared with the cost under private-company rates in the area. At the same time, the financial condition of the private power companies has improved substantially. I think it is clear that the Bonneville-Grand Coulee power system has been a sound, economical investment, has helped both private and public enterprise in the region, and is a bulwark in the defense of democracy.

With a continuation of the wise policy of Congress in the development of this project it can make equally significant contributions to the winning of the peace after the war.

OUTSTANDING SERVICES RENDERED BY THE ADMINISTRATION

I should like to offer two additional statements for the record, (1) other accomplishments of the Administration, and (2) the justification for our 1946 appropriations.

71191-45-pt. 1-17

I will not take the time to discuss these other accomplishments, unless you desire to have me do so.

Mr. JOHNSON. Without objection, they will be submitted and the committee will decide whether or not they will go into the record. We are trying to cut down the record as much as possible. (The information requested is as follows:)

OUTSTANDING SERVICES RENDERED BY THE ADMINISTRATION

1. DECEMBER FREEZE-UP

The drafts on storage facilities of the Northwest utilities during the fall and winter are scheduled in the reservoir rule curves to take advantage of the rains which usually occur in the November and December period. This past winter a general freeze-up occurred in December, and reservoir levels throughout the region rapidly dropped below their rule curves because of the reduced surface run-offs. The resulting demands on our system from the non-Federal utilities taxed our generating and transmission facilities to the limit, but we met the emergency without sacrificing loads or fuel supplies in the region. During the emergency our generation set several new highs, including an all-time peak of 1,427,000 kilowatts; and blocks of power in excess of 550,000 kilowatts were supplied to the deficient utility systems on several occasions for as long as 16 hours continuously.

2. EMERGENCY INTERCONNECTIONS

In order to conserve critical fuels by displacement of oil-and-hogged fuel generation with Columbia River hydro, three temporary interconnections were provided during the past year in the Portland-Vancouver area. This emergency, we believe, would have been avoided if our proposals for correcting a power deficiency in the West Portland area had been followed. Over 2 years ago we recognized the seriousness of this situation and made preparations to correct it. Unfortunately, we were prevented from carrying out our plans, and relief was not provided until last November. Even then, relief was too late because a serious accident to the Portland General Electric Co.'s 57-kilovolt cables feeding the West Portland area occurred before the Company's equipment at its station E was ready for service.

(a) An 11-kilovolt interconnection with the Portland General Electric Co. at our St. Johns substation was installed in July 1944. The company absorbed the power which we supplied through this tie in its local 57-kilovolt and 11-kilovolt systems and was able to reduce its oil generation correspondingly. This interconnection was discontinued following completion of the station E interconnection in November.

(b) A 13-kilovolt interconnection with the Northwestern Electric Co. at our J. D. Ross substation was made in June 1944. Power deliveries from our system were absorbed by the local distribution network of the company; and the interconnection was removed last November following the failure of one of the company's transformers used in the interconnection.

(c) In July 1944 a 66-kilovolt interconnection with the Northwestern Electric Co. was made between the company's Ariel-West Vancouver line and one of our Vancouver-Alcoa lines which is normally operated at 115 kilovolts. In order to operate the latter line at 66 kilovolts, it was necessary to isolate a generator and a transformer bank at the Bonneville power house and make temporary changes in the switching and transformer equipment. Since this arrangement handicaps our operations, particularly in emergencies, and reduces our transmission capability into the area, we had planned to remove the interconnection following energization of station E. Loss of the Portland General Electric Co.'s 57-kilovolt cables, however, has caused us to postpone the restoration of our system to normal until the cables are replaced or unless emergencies arise which require the use of our facilities at their normal ratings.

3. CABLE FAILURES

(a) Loss of the Portland General Electric Co.'s 57 kilovolt cables and its effect on the Portland situation has been discussed above. This is the third occasion

!

within 2 years when one or more of these cables were damaged by ship traffic. The company officials report that new cables should be ready for service by April next.

(b) In October 1944 one of the Puget Sound Power & Light Co.'s 15 kilovolt cables feeding the Bremerton-Port Angeles area failed in service. Since the remaining two were incapable of carrying the area load, our existing interconnections with the company at Bremerton and with the city of Tacoma at Allyn were called upon to supply the deficiency. Without our facilities, a prolonged power shortage might have occurred, since the cables in question are about 4 miles long and require several months to fabricate and install.

4. EMPLOYEE ACTIVITIES

(a) Blood bank: Over 2,300 pints of blood have been given to the Red Cross by employees of the Administration. The gold trophy cup was won and two gold stars added to the Red Cross honor award flag. The star is equivalent to winning the award a second time. The Administration's employees are the only group in the Portland area to receive the star.

(b) Victory garden: The employees were awarded the bronze plaque from the National Institute of Victory Gardens. The plaque is equivalent to the Navy E.

(e) War bonds: 16,587 War bonds representing $557,991 were purhcased through pay-roll deduction during the calendar year 1944. Purchases during the Sixth War Loan drive were 158 percent of quota.

(d) Service record: 1,136 of the Administration's employees have left for military service. Of these, 7 have been killed, 3 are reported as missing, 71 have been released, and 1,055 are still in service. Of the 71 released, 53 were reemployed, 7 resigued, 6 transferred to other Government agencies, 2 are on leave without pay and are in other essential industries, 1 is on leave without pay pending return to duty or discharge, and 1 has retired for disability. Of the 53 reemployed, 13 resigned and 5 were temporary hourly employees now terminated, leaving 35 still working.

Mr. JOHNSON. Doctor, you have made a very interesting, counstructive, and informative statement. I have just a few questions.

NUMBER OF GENERATORS IN OPERATION

How many generators are in operation at Bonneville at this time? Dr. RAVER. Ten generators at Bonneville are in operation. That is the total number of generators that can be installed at the dam. Mr. JOHNSON. That is at Bonneville alone?

Dr. RAVER. Yes, sir. And there are eight generators in operation. at Grand Coulee Dam.

Mr. JOHNSON. Now, do I understand there are 10 in operation, or 10 that can be operated at Bonneville?

Dr. RAVER. They are actually in operation.

Mr. JOHNSON. That is the full capacity, then?

Dr. RAVER. That is the full capacity; yes, sir.

Mr. JOHNSON. And how many can be operated at Coulee?

Dr. RAVER. The total number to be installed at Coulee is fifteen 105.000-kilowatt generators. There are six 108,000-kilowatt generators installed there now and in operation, and two 75,000-kilowatt generators which were borrowed from Shasta Dam, and they are also in operation.

Mr. JOHNSON. Are you asking for any additional generators, or do you contemplate asking for any additional generators?

Dr. RAVER, We have asked for additional generators repeatedly for the last 2 years. The Congress authorized three additional 108,000kilowatt generators for Grand Coulee Dam. That authorization was given to the Bureau of Reclamation which constructed Grand Coulee

and installs the generators and operates the dam. The War Production Board, however, has refused thus far to authorize the materials. We are at present sending to the War Production Board a new request that the right power house at Grand Coulee Dam be put into shape for operation and that at least one of those three generators which Congress has already authorized be constructed and that the construction work begin immediately.

Mr. JOHNSON. If you get the green light from the War Production Board now, how long would it take to actually install the extra generator?

Dr. RAVER. We figure if the generator was started immediately we could hope to have it in operation by a year from next November. Mr. JOHNSON. A year from next November?

Dr. RAVER. Yes, sir.

Mr. JOHNSON. We hope this war will be over before that time, but we have no assurance that it will be.

DEMANDS FOR POWER

Will the demands for power continue to be greater now, or is it on the decline?

Dr. RAVER. Our demand, of course, at the present time is subject to all of the possible fluctuations and uncertainties of the war loads. We lost during the past year about 250,000 kilowatts of war load. Despite those cut-backs or shut-downs, on January 4 of this year we had the highest peak demand on our system that we have ever had in the history of the operation. On that day, we carried 1,427,000 kilowatts as compared with a total rated generating capacity in our two dams, of 1,316,000 kilowatts. In other words, we overloaded the generators to meet that peak and had the water, fortunately, to do it.

Since that peak was reached, we have had requests for restoring four aluminum pot lines which had been shut down. Two aluminum pot lines are going back into production at Spokane. One of them is already back in production and the other will be back very shortly. Two pot lines which had been shut down at Troutdale outside of Portland have been reconditioned and we have been authorized and requested to stand by to take care of that load. One of the pot lines at Vancouver which was supposed to be shut down on the 15th of February was continued in operation and we have been requested by the Aluminum Co. of America to grant them some 10,000 kilowatts of extra power over and above their normal contract in order to step up production of aluminum in the existing pot lines that are already operating.

So just how you answer the question, will the demand continue or will it decline? I think at the present time is a guess as to how the war load will develop and what the demands for the war will be. We know when this war is over that we are going to lose a considerable part of our existing load; at least, we are considering that.

Dr. Dittmer tells me he has just had word this morning that the magnesium plant which was shut down in Spokane is to be reopened in part, at least.

Dr. DITTMER. That is not for magnesium, but is for some other use.

PROPORTIONAL POWER USES

Mr. JOHNSON. Can you advise the committee what percentage of our maximum peak, 1,427,000-kilowatt load, is for national defense? Dr. RAVER. We have prepared a chart answering that, Mr. Chairnan, and we have small copies for each of the members of the comnittee.

Mr. JOHNSON. We would like to have them. Can you briefly explain he chart?

Dr. RAVER. That shows how the 1,427,000-kilowatt peak demand on January 4, 1945, was divided.

Mr. JOHNSON. Of course, we cannot put the map in the record, but I think we would like to have the percentages for the record.

Dr. RAVER. The chart shows that, of the total demand at that time, 35.8 percent was for the aluminum industry, practically all of which was for war use, and we expect to lose a good part of it after the war; 3.8 percent was for other industry, giving a total of 42.6 percent for he industrial load.

Then there was 2 percent of it that went to military establishments; 3.2 percent to the city of Seattle; 6.6 percent to the city of Tacoma; 4.1 percent to other publicly owned utilities-P. U. D.'s and R. E. Á.'s. The Puget Sound Power & Light Co. took 11.9 percent; Portland General Electric Co., 11.6; Pacific Power & Light Co., Washington Water Power Co., and Northwestern Electric Co., 6.7 percent; and the Astoria division of the Pacific Power & Light Co., 0.5 percent. So the total for the privately owned facilities is about 30.7 percent of our capacity. A large part of that is for war production.

Mr. JOHNSON. I notice you have on that map "Losses, 7.8 percent." What are those losses?

Dr. RAVER. Of the 1,427,000 kilowatts of capacity of the dam, 1 hour's operation there at that capacity would mean 1,427,000 kilowatt-hours. Of the total kilowatt-hours in that hour which were produced, there were deliveries to customers of 1,315,000 kilowatt-hours. The rest of it-we do not know what happened to it; is is transmission losses, and so forth.

Mr. JENSEN. What you call "line losses"?

Dr. RAVER. Line losses; transformer losses. In other words, you produce more than you deliver to the customers. We produced 1,427,000 kilowatt-hours in that single hour; we sold all of that except 7.8 percent. That was lost.

Mr. JOHNSON. Is there anything unusual about that, or is it customary?

Dr. RAVER. No; it is part of the electric business, but it is unusual in that it is so small. The ordinary losses for a system would run 12 to 14 percent, and, as you get further and further down into the distribution side, those losses will go up. We have a very low percentage of loss for our system as compared with other systems. Our average for the year is about 6 to 7 percent. The percent lost is higher than the average for a peak such as we are discussing.

You might be interested in knowing that that loss represents nothing but a statistical figure, unless you have a market for the power. As long as you have the water and you have the generators in, if you have the water in back of the dam and have the transmission capacity,