APPENDIXES APPENDIX I A Col. L. H. HEWITT, FEDERAL POWER COMMISSION, REGIONAL OFFICE, Fort Worth, Tex., April 1, 1958. Commissioner, International Boundary and Water Commission, El Paso, Tex. DEAR COLONEL HEWITT: Reference is made to your letter of March 27, 1958, and previous correspondence between our respective offices concerning hydroelectric power values and operations of your proposed Diablo project. Your letter encloses a graphical presentation, in two sheets, of your latest operation study DF-2 and includes detailed discussion thereof. You request our review of this study and our evaluation of the energy that can be produced therefrom. A review of the graphical presentation of your operation study reveals that the capability and energy output of the Diablo plant under this plan would be reduced to zero during several of the peakload months of 1912, 1913, 1918, and 1919 and that the capability would be reduced to about 45,000 kilowatts during the peak summer load months of 1950, 1951, 1952, and 1953 with a concurrent limited energy output. Although it is indicated that the desired monthly energy output and a capacity of 75,000 kilowatts could be maintained for 30 consecutive years (1920-49), we cannot assign dependable capacity to the Diablo plant due to the capacity and energy shortages cited for other years within the period of study. On the other hand, a utility might be willing to contract, without too great a penalty, for power with an occasional shortage of capacity if sufficient advance notice of the impending shortage could be given. However, since the operation study indicates that the capacity available will not meet the standard criteria utilized by this office in assignment of dependable capacity—we have assumed that the dependable capacity of Diablo would be zero in this case. Our computations indicate that the at-site value of the Diablo energy under your power study DF-2 would be 1.7 mills per kilowatt-hour applicable to the 147.6 million kilowatt-hours of annual energy cited in your referenced letter. In evaluating this energy we have assumed that it would be marketed as steam replacement on existing utility systems and the value reflects the cost of transmission facilities and losses necessary to transmit it to the market. However, as indicated in the previous paragraph, we are of the opinion that there may be some capacity benefits but we do not evaluate them under our procedures. No values have been assigned to the power output at the Falcon project since actual contractual arrangements now form the basis for evaluation of power from this existing project. The energy value estimate furnished you in this letter is at field level and has not been reviewed by our Washington office. The value does not necessarily determine the rates at which the energy could be sold either at the site or at the market. Sincerely yours, Please do not hesitate to call upon us if we can be of further assistance. EDGAR S. COFFMAN, Regional Engineer. 255 B Col. L. H. HEWITT, CENTRAL POWER & LIGHT CO., Corpus Christi, Tex., April 14, 1958. Commissioner, International Boundary and Water Commission, El Paso, Tex. DEAR COMMISSIONER HEWITT: We have reviewed the data contained in your letter of March 7, 1958, outlining the results of your study No. DF-2, relative to a prospective power development at Diablo Dam near Del Rio, Tex., on the Rio Grande. It is our understanding that these studies were made for the purpose of maintaining a minimum of 75,000 kilowatts of peaking capacity at Diablo to the extent consistent with releases of water for irrigation purposes. Your letter requests us to evaluate these studies and advise you regarding our opinion of the value of falling water at the Diablo site for the generation of power. The Government would construct the dam, penstocks, and intake works for delivery of water and offer for sale the energy from falling water for power generation. The purchaser would be expected to construct and operate the powerplant and facilities necessary to transmit the power to markets in Texas. Since we have had no opportunity to examine the physical features or foundation requirements of the site proposed for the construction of this powerplant, we cannot at this time formulate firm estimates of cost. We have, however, reviewed cost estimates prepared by several Government agencies in connection with the study of similar hydropower developments in other areas. These cost studies indicate that the Diablo hydroplant and its electrical facilities should cost no more than $140 per kilowatt of installed capacity. We have used this figure in evaluating falling water at Diablo. Should subsequent cost studies at Diablo show that the powerplant costs will differ appreciably from this base, the value of falling water would accordingly change. Our evaluation is also based on 100 percent availability of peaking capacity. We recognize that according to your studies, shortages will exist from time to time and while we are willing to accept the premise that hydropower can never be 100 percent reliable, our estimates of its value are computed on the basis that some regulation of water releases can be effected so that a power head can be maintained and energy deliveries can be made in a manner at least as good, if not better, than indicated by your study DF-2. This study indicates that there would be periods as long as 28 years when no capacity shortages would exist. While we recognize that your studies have given responsible consideration to past and future authorized stream depletions, the Diablo project is unlike some other projects in that it is possible to legalize and make extensive future diversions between the Diablo site and Falcon Dam which might seriously affect hydropower values at the Diablo site. We would, therefore, like to reserve the right to modify our evaluation of falling water in accordance with whatever action a regulatory or legislative body might take toward exercising control of or enacting legislation affecting the use of water on the Rio Grande below Fort Quitman, Tex. As the result of our prior discussions with you on these matters and because we recognize the great benefit this project will provide to the people of Texas, we sincerely believe that many of the factors outlined above will be resolved prior to the time construction begins. Nevertheless we feel that they should be recognized along with this evaluation which we understand will be used in your feasibility study. Recognizing then that before a formal contract to purchase falling water can be formulated, several issues now in debate which are of a State, National, and even international character are yet to be resolved and that the solution to these issues may affect the value of water and power from dams built across the Rio Grande, we submit this proposal and in connection therewith our estimate of the value of power and energy from water releases at the proposed Diablo Dam: Central Power & Light Co. will construct, operate, and maintain a hydroelectric powerplant, together with the necessary tieline facilities, all of a size appropriate to the economic generation and transmission of power from Diablo Dam site. In consideration for the service of developing and maintaining head, and for providing falling water to this powerplant in a manner similar to that indicated in your study DF-2, we consider that payment averaging $337,000 per year will represent a fair value for the use of this water in the generation of power and energy at the Diablo site. We hope that the above will be of assistance to you and your staff in formulating a plan for developments of this most important international project. Yours very trulv. C J. L. BATES, President. EXECUTIVE DEPARTMENT, Austin, Tex., December 11, 1958. Hon. R. R. RUBOTTOM, Jr., The Secretary of State, Washington, D.C. DEAR MR. SECRETARY: I transmit herewith the order of the State Board of Water Engineers approving the feasibility of the proposed Diablo Dam and Reservoir project, submitted to me for review and comment. This report of the board also ratifies portions of the board order dated October 24, 1958, which was issued subsequent to a public hearing held on the preliminary report of this project submitted by U.S. Commissioner L. H. Hewitt, and referred to by me in my letter addressed to you on November 13, 1958. I hereby concur in the board approval and urge prompt action on this most important project. Recent devastating floods which have occurred on the Rio Grande, causing great loss of property and human suffering on both sides of the river fully justify the highest priority which can be given to this project. Thanks for your cooperation. Sincerely yours, PRICE DANIEL, Governor. BOARD OF WATER ENGINEERS AUSTIN AN ORDER approving the feasibility of the Federal project of Department of State, International Boundary and Water Commission, United States and Mexico, Rio Grande International storage dams projects, Proposed Diablo Dam and Reservoir and ratifying portions of a Board Order dated October 24, 1958 Be it ordered by the Board of Water Engineers of the State of Texas: SECTION 1. STATEMENT OF AUTHORITY. Article 7472e, Revised Civil Statutes, as amended, provides that upon receipt of any engineering report submitted by a Federal Agency seeking the Governor's approval of a Federal Project, the Board of Water Engineers shall study and make recommendations to the Governor as to the feasibility of the Federal Project. The Board shall cause a public hearing to be held to receive the views of persons or groups who might be affected should the Federal Project be initiated and completed. (b) In SEC. 2. STATEMENT OF JURISDICTION. (a) By letter dated November 13, 1958, the Honorable Price Daniel, Governor of Texas, forwarded final report on proposed Diablo Dam and Reservoir requesting that the Board study said report and enter its order finding said project to be feasible or not feasible. accordance with Article 7472e, the Board caused a public hearing, after due notice by publication, to be held on September 18, 1958, at 10:00 A.M. in the office of the Board at Austin, Texas, on the preliminary report of the proposed Diablo Dam and Reservoir project and at which time all those interested or who may be affected should the project be initiated and completed were requested to come forward and give testimony. SEC. 3. After fully considering all the evidence and exhibits presented by persons and groups who may be affected should the Federal Project be initiated and completed, including the matters set forth in Section 4 of Article 7472e, the Board found that the said Federal Project was feasible and that the public interest would be served thereby, and on October 24, 1958, entered its order approving the preliminary report on the Federal Project of the Department of State, International Boundary Commission, United States and Mexico, Rio Grande International Storage Dams Project, proposed Diablo Dam and Reservoir, subject to the following: (a) The proposed Diablo Dam must be integrated with other water conservation activities on the Rio Grande below Ft. Quitman, Texas, and operated in such manner that the amount of water allocated to the American section and available for release from and through Falcon Dam which would otherwise be available for use by existing lawful diverters and appropriators of the American section below Falcon Dam will not be impaired or diminished; and (b) All releases of conservation storage water allocated to the American section from the proposed Diablo Dam for hydroelectric power purposes shall be subordinated to higher priority or preference uses of lawful diverters and appropriators of the American section below Diablo Dam and in accordance with State law. SEC. 4. The recommendations above set forth and in Section 4 of said Board order dated October 24, 1958, appear to have been incorporated in the final report of proposed Diablo Dam and Reservoir and there is no other substantial difference between the preliminary and final report of the proposed Diablo Dam and Reservoir. To the extent said recommendations may not be incorporated in and made a part of the final report of proposed Diablo Dam and Reservoir and the proposed project operations, they are hereby reaffirmed, ratified and made a part of this order. SEC. 5. Subject to section 4 above, the Federal Project of the Department of State, International Boundary Commission, United States and Mexico, Rio Grande International Storage Dams Project, proposed Diablo Dam and Reservoir is hereby approved as to its feasibility. SEC. 6. It is further ordered that a certified copy of this order be transmitted to the Governor. SEC. 7. This order shall take effect and be in force on and at the day of its passage and it is so ordered. Signed in the presence of the Board. DURWOOD MANFORD, Chairman. I certify that the foregoing order was adopted by the State Board of Water Engineers at a meeting held on the 8th day of December A.D. 1958, upon motion of Member Dixon, Chairman Manford voting "aye", Member Dixon voting “aye", and Member Dent voting "aye." BEN F. LOONEY, Jr., Secretary. |