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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.

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TABLE OF CONTENTS

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Introduction: Development of misleading propaganda.---
Section 1. Summary of conclusions and findings.--

Correction of false premises shows Government hydro

cheaper than steam.
Major Government hydro projects offer great savings in

power cost.
Many potential hydro developments will prove economic.-
National Resources Board" contemplates many hydro

projects.--
Canadian systems prove hydro offers dependable power

supply---
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-

Steam generating costs on network basis-
Section 4. Economic analysis of major hydro projects.

Basic assumptions.--
St. Lawrence River development.
Bonneville development.---
Grand Coulee development.

Boulder Dam development.
Section 5. Economic investment in Government hydro projects---

Public hydro investment limits derived from cost of alter

native private steam generation.
Limit of economic investment in public hydro per kilowatt

of dependable capacity---
Section 6. Water power as a dependable source of system supply

Correlated hydro projects for system power supply
Ontario finds hydro power dependable-

Hydro systems have lowest rates..
Section 7. Intangibles favor Government hydro.-

Lower fixed charges make possible wider use of resources.
Public plant may eventually operate debt-free-

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Appendix I. Modern steam-generating costs

Current steam-station design.
Investment per unit of station capacity -
Dependable capacity --
Operation and maintenance-
Fixed charges
Fuel costs
Cost of modern fuel generation at large load centers--
Steam-generating costs on network basis.

Transmission costs.-
Appendix II. Cost of power from major Government hydro projects

compared with cost of equivalent steam power..
Modification of Mr. Fowle's assumptions..
Steam-Capacity

factor--Installation cost-
Thermal performance -
Hydro-Investment cost-Salability of secondary
power-Load factor-Fixed charges-Operat-
ing cost-Reserve factor—Transmission cost--

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