The power authority report shows that this propaganda is based on incorrect figures. It finds that the group of major Government waterpower projects, which served as the basis for the propaganda, will actually deliver electric power to markets, involving 200 miles transmission, for a corrected average of approximately 3.3 mills, as compared with a corrected steam power cost of from 5.6 mills to 6.3 mills, depending upon the cost of fuel in the areas served. The report, by establishing a technically sound method of appraising the economy of contemplated Government hydro undertakings, reveals the certainty that hydroelectric projects will prove economically sound as integral parts of the Government river basin conservation program. Respectfully, FRANK P. WALSH, Chairman. GOVERNMENT HYDRO VERSUS PRIVATE STEAM POWER A STUDY IN RELATIVE ECONOMY PREPARED BY THE POWER AUTHORITY OF THE STATE OF NEW YORK Trustees FRANK P. WALSH, Chairman JAMES C. BONBRIGHT, Vice Chairman FRED J. FREESTONE GEORGE S. REED LELAND OLDS, Executive Secretary Technical staff GERALD V. CRUISE, Civil Engineer VII TABLE OF CONTENTS Page com god Introduction: Development of misleading propaganda. Correction of false premises shows Government hydro Major Government hydro projects offer great savings in Many potential hydro developments will prove economic_ Canadian systems prove hydro offers dependable power Section 2. Critical analysis of Mr. Fowle's assumptions. Section 3. Modern steam generating costs.. Investment cost_ Reserve requirements.. Generating cost in load center steam stations. Modern practice tends toward transmission networks. Section 4. Economic analysis of major hydro projects__ St. Lawrence River development. Bonneville development_-- Boulder Dam development. Section 5. Economic investment in Government hydro projects.. Public hydro investment limits derived from cost of alter- Limit of economic investment in public hydro per kilowatt Section 6. Water power as a dependable source of system supply. Hydro systems have lowest rates. Section 7. Intangibles favor Government hydro.. Lower fixed charges make possible wider use of resources__ Appendix I. Modern steam-generating costs. Current steam-station design_ Cost of modern fuel generation at large load centers. - Transmission costs.. Appendix II. Cost of power from major Government hydro projects compared with cost of equivalent steam power-- Hydro-Investment cost-Salability of secondary cost IX |