CONSTRUCTION Mr. CANNON. For construction you are requesting no new appropriations? We will insert page 4 of the justifications at this point in the record. (The page referred to is as follows:) JUSTIFICATION-CONSTRUCTION IN PROGRESS MISCELLANEOUS CARRYOVER FUNDS General plant and equipment, $55,000.-Approval of the use of carryover funds for acquisition of materials and equipment in fiscal year 1959 is requested. These funds are made available due to a decision by the city of Anadarko to purchase its power from another source. Funds in the amount of $55,000 approved in fiscal year 1958 for the purchase of a transformer for Anadarko are not needed for that purpose, but are required for the following materials and equipment: Item Power wagons (2 replacements). Substation maintenance equipment-- Cable, timbers, crossarms and braces, line hardware, etc_- Total. Estimated cost $9,000 3,000 15,000 10, 000 5, 000 3,000 1,000 7,500 1,500 55, 000 Mr. CANNON. I notice under "Construction" we subtract the amount of $847,000 placed in the budget reserve. As I recall it, that was with regard to the line you discussed with us? Mr. WRIGHT. That is correct. We have $225,000 more that is not in the reserve which I am sure will not be spent unless it is needed for that Missouri line. The changes in our contracts have eliminated the necessity for mobile substations. OPERATION AND MAINTENANCE Mr. CANNON. Now, with regard to operation and maintenance for 1958, the appropriation was $1 million. The 1959 request is $975,000. That is a reduction of $25,000. We will insert pages 6 through 17 in the record at this point. (The pages follow :) The estimate of $975,000 for fiscal year 1959 is a decrease of $25,000 under the operation and maintenance appropriation for the fiscal year 1958. In 1958 the appropriation for "Operation and maintenance" was $1 million. This program was carried out under the following activities and amounts: System operation and maintenance, $600,000; power contracts and rates, $100,000; and general administration, $300,000. The estimate of $975,000 for the operation and maintenance program for fiscal year 1959 includes the following activities and amounts: System operation and maintenance, $594,000; power contracts and rates, $91,000; and general administration, $290,000. JUSTIFICATION System operation and maintenance, $594,000 The estimate of $594,000 for fiscal year 1959 is a decrease of $6,000 under the $600,000 available for fiscal year 1958. In order to accomplish its function of marketing surplus power from Federal hydroelectric generating plants in the Southwestern Power area the Administration has constructed 1,028 miles of high voltage transmission lines, with appurtenant facilities, to powerload centers and to points of interconnection with other utility systems. Power will be marketed from 8 Federal hydroelectric generating plants, and 3 steam generating plants owned and operated by generating and transmision cooperatives, in the fiscal year 1959. Five of the hydroelectric plants are directly interconnected by the transmission grid system of the Administration. Through interconnections with the systems of the generating and transmission cooperatives and the private utility systems, the power generated at these plants and the three steam generating plants owned by the cooperatives, is integrated with power generation from steam plants of the private utilities. This obtains the maximum benefit from integration of hydroelectric and steam generated power. The power produced from the three other Federal hydroelectric plants which are now in operation, and which are isolated from the main grid system of the Administration is marketed through contractual arrangements with private utility systems and generating and transmission cooperatives. This power is transported over the transmission facilities of these entities, for their own use as customers of the Administration, and for service to other customers of the Administration. The complex problems encountered in the operation of these vast interconnected systems make it necessary to maintain a staff of highly trained technical personnel, and to operate and maintain the transmission system of the Administration with the maximum of efficiency to assure dependable service throughout the Southwestern Power area. During the fiscal year 1958, this Administration employed three line maintenance crews for the purpose of maintaining its transmission system, so as to assure reliable service to its customers. These crews are stationed at Ada and Muskogee, Okla., and Doniphan, Mo. In southwestern Missouri, a portion of the transmission lines is over 200 miles from the nearest line maintenance depot. The following tabulation indicates the transmission lines assigned to each crew, together with the highway distances from the maintenance depot (shown in parentheses). Line 3101. Ada, Okla., line maintenance depot Miles South Canadian River (30 miles) to Denison Dam (81 miles) - 84.4 Total miles of line assigned to the Ada crew----. 109. 7 18.7 14.8 91.1 121.6 19.8 350. 1 Line 3005. Van Buren (79 miles) to Weleetka (65 miles). 108.6 23. 4 5.8 Weleetka (65 miles) to South Canadian River (104 miles) __ 28.9 161.5 29.2 Total miles of line assigned to the Muskogee crew. 357.4 Line 3002. Norfolk (131 miles) to Idalia (78 miles). Doniphan, Mo., line maintenance depot Total miles of line assigned to the Doniphan crew. Total miles of lines_---- 1, 028. 4 1 Inspection and minor maintenance performed under contract with local utilities. Two substation maintenance crews are located at Springfield, Mo., and Muskogee, Okla. These crews maintain, repair, and perform minor construction and replacement work on substations, meter and relays, supervisory, remote control, and communication equipment located over the entire transmission system of the Administration. These two crews also maintain metering, communication, control and protective equipment owned by the Administration, but located at 8 federally owned hydroelectric plants, and at 24 substations owned by interconnecting utilities. Load dispatchers are located at Springfield, Mo., substation, and are responsible for scheduling and dispatching power to meet load demands while coordinating to the best advantage the loading of the various hydroelectric plants operated by the Corps of Engineers, together with steam generating plants owned and operated by the generation and transmission cooperatives. In order to perform this function properly, it is necessary to maintain a 24 hour a day, 7 days a week schedule. A substation operator is stationed at the Gore, Okla., substation in order to switch power during peak load hours. In addition to the maintenance and operation of transmission facilities it is necessary to clear rights-of-way on transmission lines. This maintenance is performed in order to avoid outages that interrupt the power service, resulting from brush fires and tree growth on the rights-of-way. Funds are also included under this activity for the engineering and supervisory staff, which furnishes the executive and staff direction of engineering planning, and technical supervisory functions in connection with the operation and maintenance of the transmission system, and the coordination and integration with other utility systems. In addition, this staff participates in the study of power resources and requirements in order to assure dependable electric service to customers and interconnecting systems. Also, this staff in accordance with existing regulations makes studies of the revenue potential from multiple-purpose projects to be constructed by the Corps of Engineers, in order to determine the feasibility of installing power facilities in such proposed projects. When these projects have reached the preliminary planning stage this staff participates with the Corps of Engineers in making studies of the design of the power transmission installations, such as, circuit breakers, transformers, telemetering, relays, supervisory equipment and associated equipment for dispatching and control of the power produced from such projects. The following tabulation indicates the estimated obligations for 1959 by organizational units under this activity. The estimate of $91,000 for fiscal year 1959 is a decrease of $9,000 under the amount available for fiscal year 1958. This estimate covers funds for personal services and travel of the Division of Rates and Customer Service. The staff of this Division carries out all marketing agreements with preferred customers and private utilities for the purchase, sale and interchange of electric power and energy. In order to perform the function outlined above, it is necessary for this staff to conduct negotiations and develop contracts for the sale, exchange, transfer, and purchase of power and energy, and for the lease of power system facilities, together with arrangements for the wheeling of Government power over the various transmission systems. To make continual analyses of power rates to insure that sufficient revenue is derived from the sale of power and energy for the amortization of the Government's investment in both production and transmission facilities. To calculate rates and prepare pay-out studies for submission to the Federal Power Commission for approval. To perform customer services under all contractual agreements. Conduct studies of cost allocations made to power by Corps of Engineers. Conduct studies of the market for power to be produced from future projects, and the revenues that would be derived from the sale of such power. The tabulation on the following page indicates the number of positions and the estimated personal services and travel costs of this Division that are considered necessary to carry out this activity for the fiscal year 1959. General administration, $290,000 The estimate of $290,000 for fiscal year 1959 is a decrease of $10,000 under the $300,000 available for fiscal year 1958. The estimate for this activity includes the cost of personal services, travel and other general administrative expenses chargeable to electric operations of the Administration, but not directly chargeable to a particular electric function, such as production, transmission, sales and customer services, etc. These costs cover the executive direction and service functions necessary to accomplish the overall program of the Administration. Other costs not pertaining to the direct electric operations of the Administration are included under this activity because of action by the Congress in providing funds for the reactivating of contracts with certain generating and transmission cooperatives which placed an additional administrative burden on the Administration. These costs include administrative and technical personnel, together with related costs, that are necessary to properly administer the contracts between this Administration, and the generating and transmission cooperatives. The tabulation on the following indicates the total estimated obligations for 1959 by organizational units under this activity. Mr. CANNON. There will be decreases in activities under this heading all of which is very gratifying. We have no questions on that. CONTINUING FUND With regard to the continuing fund, the 1958 appropriation was $5 million and the 1959 request is $4,405,000, or a decrease of $594,000. We will insert pages 19 through 26, inclusive, in the record at this point. (The justification follows:) (Editor's Note: Revised estimates may be found on page 85, et seq.) |