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plant and other facilities; and for the construction of a schoolhouse in Boulder City at a cost of not to exceed $50,000, which amounts of $1,000,000 and $500,000 shall he available for personal service—

And so forth.

The language there is intended to specifically authorize the construction of a schoolhouse as a facility of the Boulder Dam project. Is there any other way that this schoolhouse can be built that you know of, it being distinctly understood that the cost is to be paid back by the project in the same manner as the remaining facilities are to be paid?

Mr. Pace. I know of no other way in which that can be financed, because the property in the town. Boulder City, and in the school district which requires this facility is almost wholly Federal owned.

Mr. Scrugham. And for that reason it cannot be bonded or taxed?

Mr. Page. No, sir.

Mr. Scrugham. How would any revenues be received which could repay the construction of this schoolhouse?

Mr. Page. Under the Nevada law a school district is compelled to finance itself on the basis of the number of pupils in the school.

Mr. Scrugham. Yes.

Mr. Page. A certain amount of taxation, and, in addition, the State funds are allocated on the basis of the pupils in their district schools. By that means if the district has money enough it can pay the United States as rent for this building, and repay the cost of building the school in a reasonable time.

Mr. Scrugham. To amortize the cost?

Mr. Page. Yes.

Mr. Scrugham. I bring that up at this time because it represents a very peculiar and unusual problem. This has been declared legal by the various legal departments of the Government, and I wish to present it at this time.

Mr. Rich. I suppose this would be constructed with P. W. A. funds?

Mr. Scrugham. No; no P. W. A. funds.

Mr. Page. No; from funds out of this appropriation.

Mr. Rich. From funds out of this appropriation?

Mr. Page. Yes; from the revenues which are derived from the sale of power.

Mr. Scrugham. No additional sum is asked in the Budget. It is merely a specific authorization for the construction of the schoolhouse as a facility for the operation of the. plant, and it seems to be entirely proper to bring it up at this time.

Mr. Leavy. But it is proposed under the existing laws of the State of Nevada, as a matter of school revenues; that is, so far as the original investment by the Government is concerned, it will be repaid to the Government?

Mr. Page. Yes.

Mr. Leavy. I presume they have some method by which they pay so much for each child in attendance?

Mr. Page. Yes.

Mr. Leavy. How many school children do you have there of school age^

Mr. Page. The present enrollment is 390.

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Mr. Leavt. Is that school population going to be fairly permanent, or is it apt to increase or decrease?

Mr. Page. It appears to be fairly permanent. We did have at one time over 700, but it has been reduced to about 390 by completion of construction of the dam.

CONTINUING INSTALLATION IN GENERATING UNITS OF BOULDER CANYON PROJECT

POWER PLANT

Mr. Leavy. The Boulder Canyon project has not yet been covered in this discussion. Mr. Page, would you make a statement, concerning that?

Mr. Page. I have submitted a justification, but I shall be glad to elaborate here. As to the Boulder Canyon project, of course, our appropriation is out of the Boulder Dam fund, which is set up by the Boulder Canyon Project Act. The requested appropriation is for the purpose of continuing the installation of generating units in the power plant.

There are now four generating units operating. They are furnishing power to the city of Los Angeles. The Metropolitan Water District of southern California, as you recall, has authority to contract to take power from two additional units within 1 year from the time that Los Anpeles starts on its firm contract. The installation of the two units for the metropolitan district is now in progress. This money is needed to continue the installation of those two units.

SUPPLEMENTAL ESTIMATE PENDING BEFORE BUDGKT BUREAU

I call the attention of the committee to the fact that I have made a request to the Bureau of the Budget for a supplemental estimate of $2,000,000, because recently another power contractor has made a request for the installation of two units, making a total of eight of the large units, and one small unit, which will be installed, or in the process of installation within the fiscal year 1938. Therefore, in order to meet the demands on those units and to comply with the request of the power purchasers, we would need a total of about $3,000,000 during this coming fiscal year.

Mr. Leavy. Your estimate here is $1,000,000.

Mr. Page. Yes; but as I say, I sent over to the Budget a supplemental estimate asking for $2,000,000, occasioned by the very recent request of the Southern California Edison Co. for the installation of two units to be completed in the year 1939. It takes more than a year to construct one of those units.

Mr. Leavy. You mean they want to buy the type of power you have there?

Mr. Page. The Boulder power is already contracted for. and we have definite contracts covering all of the output of the plant. There are certain conditions, however, as to when the purchasers shall take that power. The city of Los Angeles needed it first. They have four units, as I say, now operating, and the metropolitan water district is required to take power next. The Southern California Edison Co. was not to take power until 1940, but this company's load has increased so greatly that it lias written to us asking that its two unit? be installed and ready to operate in 1939.

Mr. Leavy. Do you make any preference in the sale of power either to municipalities or corporations?

Mr. Page. All of the power was allocated back in 1930, and approximately 75 or 80 percent of it goes to public or municipal agencies, including the States.

Mr. Leavy. Has your service at this time experienced any difficulty in the sale of the power as you have been bringing it in?

Mr. Page. No; not at all. Of course, in some instances, like Boulder Dam. we have plans for the installation of 17 units. These will be installed as the market develops. We have already a demand for 8y2 of those units in the first year of operation. This early and urgent demand exceeds our original expectations.

SALE OF DUMP POWEli

Mr. Scrugham. Mr. Page, there is something that fits right in here. You have cheap power which is known as "dump power." Mr. Page. Yes, sir.

Mr. Scrugham. That is power which is distinguished from firm or continuous horsepower? Mr. Page. Yes; that is right.

Mr. Scrugham. This dump power is sold at a much lower rate than the firm horsepower by reason of the uncertainty of the time of supply. Will you make a brief statement as to when this dump power will cease to be available and also the rate and who gets it under the terms of the contract, because it fits in at this point. I wish to develop something along that line.

Mr. Page. The Boulder Dam power plant will develop 663,000 firm horsepower continuously, and the amount of secondary power or dump power available is dependent upon the run of the river. For that reason the dump power is of less value than the so-called firm power which can always be depended upon.

The contracts with the power purchasers provide separate rates for the two different types of power. The firm power, or the primary power, is sold at a rate of 1.63 mills for falling water, thus requiring, in addition, each purchaser to operate and maintain his own units, and to pay for those units over a period of 10 years. This makes the actual rate of power developed at the switchboard about 2.2 mills per kilowatt-hour. The same conditions apply to the dump power, except that the basic rate is one-half of a mill, instead of 1.63 mills. Mr. Scrugham. 1.63 mills is the rate for falling water? Mr. Page. Yes, sir; the dump power is worth approximately onethird of the firm power.

Mr. Scrugham. Who gets this dump power under the existing contracts?

Mr. Page. Under the existing contracts the dump power is sold to the Metropolitan Water District of Southern California. If the district fails to use it, the city of Los Angeles has next claim, the city to get half of it and the Southern California Edison Co. the other half.

Mr. Scrugham. That is presumably for the pumping of water? Mr. Page. That is right. The district expects to use this dump power to pump water through its Colorado River aqueduct. The

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■•■fl»»Jrrations. with the Imperial nnd Coaohella Valleys in California, the ex>ulitnm> for said main canal and appurtenant structures to lie reimbursable, *• provided in the reclamation law. Section 3 of the act authorized nppropria•>>n*. not exceeding: $16o,0<>0.000 in the aggregate, for the construction of AllAsH-riran Canal and the Boulder Canyon Dam, power plant, and incidental

location.—The canal is located in the extreme southern portion of California -a Imperial and Riverside Counties. The Imperial diversion dam is being conftrorted across the Colorado River in Imperial County, Calif., and Yuma ■ .xmtj. Arix.

I be primary purpose of the Ail-American Canal is to provide a route entirely «• thin the United States for the diversion of water from the Colorado River :n tbe 50O.0O0 acres of land in Imiicrinl Valley now receiving water from the '■• prrial Canal, which for the greater jiortion of its length runs through UrxWo. In addition it will provide a water supply for lauds not now under irrigation and for lands in Coachella Valley which now obtain water from wells. ~+r eventual irrigated area will be approximately 1,0<)0.(X.K) acres.

Itfcnptitm.—The main canal will have a length of about W miles. It starts it imperial diversion dam. 15 miles northwest of Yuma, Ariz., nnd follows near :hr river to Laguna Dam, 5 miles downstream, from where it cuts through the '-•'hills at the edge of the mesa to Pilot Knob, following a course generally [•rallel to the present Yuma main canal, which it will replace, as far as Siphon limp. After passing Pilot Knob, the general direction of the canal is parallel '» the Mexican boundary, being in places within a few hundred feet of it and '•ring it in other places, as through the sand hills, by as much as 3 miles. The canal ends at the west side main canal of the Imperial irrigation district, »t.«t 10 miles west of Calexico.

From Imperial Dam to Siphon Drop the canal will have a capacity of 15,000 •mud-feet. At Siphon Drop 2,000 second-feet will be diverted for the Yuma --nation project. From Siphon Drop to Pilot Knob, where 3.000 second-feet

* i be made available for power in a drop to tbe Colorado River, the capacity .« ''!/*»> second-feet. After passing the sand hills there will be a diversion of -X" xecoud-feet into the Coachella branch. Crossing Imperial Valley, dlver•''<» are made to the existing irrigation system at various places, reducing the opacity at the end to 2.000 second-feet. Between the sand lulls nnd Calexico :Vr» are five drops in the canal, aggregating about 130 feet, available for power ■Sf'Hi.pment.

The Coachella branch will leave the main canal nt station 1007 and run in a

-hweMerly direction along the edge of the sand bills to n point east of the

'*b «t Coachella, where there is an 80-foot drop. From the drop the canal

'■"•e* Coachella Valley to the southwest side, down which it continues, to end

«' the Riverside County line. The capacity at the head will lie 2.300 secoud

* -»t In addition to lands in Coachelln Valley, this canal will furnish water to jub uo East Mesa. Its total length will lie 130 miles.

Imperial Dam. the diversion point for the canal, is being constructed as part 'f 'he All-American Canal project. It will lie located on the Colorado River 5 -..«■« upstream from I~tgunu Iiatn and 15 miles northeast of Yuma. It is to lie

* fuarrete stnu-ture 2.090 feet long with a hollow or •'floating" type overflow •""Win l.3<u feet long and 31 feet high from foundation to crest. The desiltiug » 'k» which are being constructed in connection with the dam will remove r* •» i,l the silt before It enters the canal.

F't<w.ntrH rtmt and funds arailablr.—The estimated cost of the project is

x*i»utm. Funds available couslst of Public Works allotments of $0.1)00.000,

-• iMTOfw-y-relief allocation of $11,500,000, and an appropriation of $0 500,000;

- ».i KiMiuijam.

t'taimmt nmtrartn.—The cost of construction of the dam nnd canal will lie ■*W»d under contracts with the Imperial irrigation district and the Coachella tuV? nmnty water district, whereby the districts repay the total cost without *«ere»t over n period of 40 years, beginning 1 year after the completion of the ***. The t'nltcd States will retain operation and control of the diversion '■a tut the main canal to Siphon Drop. Below Siphon Drop the United States ■«T turn over to the districts the operation of the canal on 60 days' notice after "•pJetlcc, but reserves the right to resume operation nt any time on 60 days'

V«|re.

"rarnwnts by each district for construction will be for the works exclusive '■* that district and in proportion to capacity in the common works. The '•P"lal irrigation district will operate the "common works."

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