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LETTER OF DR. WILLIAM A. PEARL TO SENATOR JAMES E.

MURRAY

DEPARTMENT OF THE INTERIOR,
BONNEVILLE POWER ADMINISTRATION,

Hon. JAMES E. MURRAY,

Portland, Oreg., November 6, 1957.

United States Senate, Washington, D. C.

DEAR SENATOR MURRAY: At the request of Secretary Seaton, we are enclosing copies of all documents which have been prepared by the Bonneville Power Administration and by the Idaho Power Co. in connection with the discussion and study of a lawful and equitable method of complying with the terms of the company's license for its middle Snake River projects.

We would like to emphasize the fact that all of the discussions between the Administration and the company to date have been preliminary in character and, for the most part, have been directed toward ascertaining the total additional firm-power capability which will inure to the benefit of the region by reason of the coordination required by the license. Copies of the studies developed in this determination are included in the enclosure. While some of the documents enclosed may appear to be in contractual format, we wish to further emphasize the fact that neither the Administration nor the Idaho Power Co. have to date made any firm offer with respect to coordinated operation or to the division of the benefits resulting therefrom. Proposals for discussion purposes are normally prepared thus to insure that all parties are precisely informed of the issues

under consideration.

In line with our usual practice, it is our intention to thoroughly discuss all fundamental features of any proposed agreement establishing coordinated operation of the Idaho Power Co.'s project and its system with the Northwest power pool with all interested groups and agencies in the Pacific Northwest before any contract is finally formalized.

We will be most happy to keep your committee fully informed as developments are made in the course of our discussions.

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Sincerely yours,

WM. A. PEARL, Administrator.

DOCUMENTS SUBMITTED TO CHAIRMAN MURRAY WITH DR. PEARL'S LETTER OF NOVEMBER 6, 1957

CONFERENCE AND TELEPHONE CALL REPORT

For: Office of the Administrator.
From: John P. Jolliffe.

DECEMBER 5, 1955.

Outside caller or conferee: Ralph Gale, vice president, Idaho Power Co. Summary of discussion: I called Mr. Gale to advise him that we had completed our studies on the integration of the Brownlee, Oxbow, and Hells Canyon Dams into the Northwest system, and that we would have them in the mail sometime this week.

It was mutually decided to hold a meeting to discuss the study in Boise, Idaho, on January 4, 1956.

Mr. JOHN T. KIMBALL,

Vice President and General Manager,

Idaho Power Co., Boise, Idaho.

DECEMBER 15, 1955.

DEAR MR. KIMBALL: You will recall when we were in Spokane you expressed an interest in our standard maintenance frequencies. I have finally been able to locate a copy of some earlier material which we distributed about a year ago to our customers. I am attaching that portion of this material which was applicable to maintenance with the hope that it will be useful to you.

I hope we can send Mr. Gale some information on the integration of your middle Snake dams sometime next week. In looking over the material in draft form I find it very interesting and I am sure you people will also.

I would like to take this opportunity to send you seasons greetings and best wishes for the coming year.

Sincerely yours,

MILLER EVANS,

Acting Director, of Operations and Maintenance.

Mr. RALPH GALES,

DECEMBER 16, 1955.

Vice President, Idaho Power Co.,

Boise, Idaho.

DEAR MR. GALES: In Mr. Jolliffe's absence I am attaching for your review and consideration a preliminary study and analysis prepared in this division relative to the coordinated operation of Brownlee with the Federal system and the Northwest Power Pool. Mr. Jolliffe and 1 or 2 of the staff are planning to meet with you in Boise on January 4, 1956, to discuss the study if this still continues to be agreeable to you. In the meantime we are continuing to review the overall problem and will be glad to try and answer any question that you may have prior to the meeting. I am sending a copy of this material to Mr. Boyd Austin of the Bureau of Reclamation at Boise, who has been designated as the Bureau representative on this problem.

I'd like to take this opportunity to extend to you my best wishes for the forthcoming year.

Sincerely yours,

MILLER EVANS, Acting Director, Division of Operations and Maintenance.

Mr. LESHER WING,

Federal Power Commission,

DECEMBER 21, 1955.

San Francisco, Calif.

Dear Mr. WiNG: This is to let you know that the meeting scheduled in Boise, Idaho, on January 4, 1956, pertaining to coordinated operation of the Brownlee storage with the Northwest Power Pool through the Federal system, has been

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postponed until January 11. Please advise your representative of this change. The exact time and place will be forwarded to you prior to the meeting.

Very truly yours,

JOHN P. JOLLIFFE,

Chief, System Operations and Power Resources.

To: Mr. Henderson M. McIntyre.
From: Administrator.

DECEMBER 28, 1955.

Subject: Idaho Power integration.

The other day when the advisory board met we discussed the integration with Idaho Power. As you know, Reclamation has designated a man to represent them at all your meetings with the Idaho Power.

I asked General Foote if he would like to have representation present and he said he thought he would designate Mr. Mark Nelson to represent him. Mr. Wing also indicated he would like to be represented and designated Mr. Irvine J. Rees.

Will you please forward to these men the material you prepared for this meeting, and keep them informed regarding when your meeting will take place with the Idaho Power in Boise.

Mr. IRVINE J. REES,

WM. A. PEARL, Administrator.

DECEMBER 30, 1955.

Engineer, Federal Power Commission, San Francisco, Calif.

DEAR IRVINE: Enclosed is a copy of the power operation studies prepared by BPA for discussion with the Idaho Power Co. relative to coordination of Brownlee with the Federal system and the Northwest Power Pool. This copy is in addition to the one sent by Dr. Pearl to Mr. Wing.

As you know, the meeting at the Idaho Power Co. offices in Boise, Idaho, has been tentatively scheduled for January 11, 1956. In the meantime should you have any questions regarding the studies, please let me know.

Very truly yours,

Dr. WILLIAM A. PEARL,

H. M. MCINTYRE, Hydraulic Operations Officer.

IDAHO POWER, Co.,

Boise, Idaho, January 12, 1956.

Administrator, Bonneville Power Administration, United States Department of the Interior, Portland, Oreg.

DEAR DR. PEARL: Your letter of December 21, 1955, to Mr. T. E. Roach, has been referred to me for reply.

The information regarding the load estimates which was furnished you by Mr. H. R. Moore, under date of October 14, a copy of which is attached, is suitable and the most current estimate we have regarding the total peak and energy loads by months to July of 1967.

The electrical data on major new transmission facilities which will be added to our system and be in operation by January of 1961 is shown on the attached schedule headed "New and proposed 230 kilovolt transmission lines," and also on the attached map.

The schedule of dates when units at the Oxbow and Brownlee plants will be added is changed to the following dates:

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We will be very pleased to participate in meetings which your staff may have during the preparation of your 1958 budget data.

If the above information is not complete or is not in the desired form, please do not hesitate to advise us and we will endeavor to comply with any request.

Yours very truly,

R. E. GALE, Vice President.

Idaho Power Co. load forecast 1956-67 for engineering subcommittee of Northwest Governors' power policy committee

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New and proposed high voltage transmission lines (230 kilovolts)

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Boise Bench: 230/138 KV. tie transformer 300 MVA; 40 MVA syn condenser. American Falls: 230/138 KV, tie transformer 400 MVA; 1-60-MVA syn condenser.

Mr. H. R. MOORE,

JANUARY 17, 1956.

Superintendent of Power, Idaho Power Co.,

Boise, Idaho.

DEAR DICK: Thank you very much for the characteristic data for Idaho Power Co.'s Brownlee and Oxbow plants. We will adjust our original studies accordingly and use this data in preparing the additional analysis suggested at our Boise meeting.

Very truly yours,

H. M. MCINTYRE, Hydraulic Operations Officer.

Mr. H. R. MOORE,

Superintendent of Power,

Idaho Power Co., Boise, Idaho.

FEBRUARY 1956.

DEAR MR. MOORE: We have reviewed our studies of benefits from coordination of Brownlee with the Northwest power pool and as a result have increased the benefits from this coordination. Part of the benefit is attributable to the revised characteristics for the Brownlee project that you sent to us. We were also able to increase the benefit from coordination by delaying Brownlee storage release until later in the year.

Copies of the combined system regulations and revised tables are enclosed. I am also sending copies of this material to the representatives of the Federal Power Commission, Corps of Engineers, and Bureau of Reclamation by a separate letter. Under minimum year streamflow conditions and coordinated operation Brownlee storage is not withdrawn until after January 1 in either 1961-62 or 1964-65. On the basis of median month hydro withdrawal is started somewhat earlier or on the 1st of October.

You will note that benefits from coordination under 1962-63 installations have increased from 124 average megawatts to 142 average megawatts and the annual loss at Brownlee and Oxbow because of coordinated operation instead of isolated operation amounts to only 3 average megawatts instead of 19 as shown in the original computation. Under minimum year streamflow conditions and 1964-65 installations the benefit has been increased from 167 average megawatts to 181 average megawatts. Similar increases are indicated for these 2 years under median month streamflow conditions. In addition, the increased efficiencies of the Brownlee plant have made possible additional capability to the Idaho Power Co. on an independent operation basis. As an example, under 1962–63 installations and minimum year hydro the surplus is increased from 50 average megawatts to 61 average megawatts.

This data is only a reanalysis of the material included in our original report. We are continuing on with the other suggested studies and will forward them to you as soon as they are completed. We hope to have considerably more of them finished prior to the February 14 meeting. We have advanced far enough along on these other studies that we feel some benefit could be gained if you or members of your staff could come to Portland and discuss them with us prior to the general meeting now scheduled on February 14. Any time between now and then would be satisfactory to us. I might recommend February 13 for this prior meeting so as to combine the two meetings in one trip. Please let me know your wishes so that I may make arrangements for these meetings in our Interior Building, 1001 NE Lloyd Boulevard.

Very truly yours,

Mr. HENDERSON M. MCINTYRE,

Bonneville Power Administration,

Portland, Oreg.

H. M. MCINTYRE, Hydraulic Operations Officer.

IDAHO POWER Co.,

Boise, Idaho, February 15, 1956.

DEAR MAC: In our discussion yesterday, I agreed to review the figures you used in the study for the present peak and average capacities of our present plants under both median and critical water conditions.

We find that the figures you have used are from the power-pool operating program and have the same source as the ones we ordinarily use. However, there are some small discrepancies, and we feel that it might be better to use the figures that we normally use.

Enclosed are four sheets showing these figures:

1. The peaking capacity under both median and critical water.

2. Energy capacity, median water.

3. Energy capacity, critical water.

4. Energy capacity, system critical.

These figures are, of course, based on historical river flows and, while it might be desirable to have capacities based on depleted flows, this does not seem to be practical, since depletion will have entirely different effects on different plants and, as far as we know, no data are available by which each individual plant's capacity could be adjusted.

Very truly yours,

H. R. MOORE, Superintendent of Power.

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