power requirements have been programed for construction so that the construction of Hartwell would not directly benefit its power requirements. If the Savannah River plant follows the pattern of other AEC installations, there can be no doubt but what there will be major expansions in the capacity of this plant during the coming years. It is not necessary to dwell on the so-called atomic age. It will suffice to say that the requirements of atomic energy will become increasingly larger through the years, and the Government as the main supplier of this energy will be faced with continued expansions and new constructions in this field. There is no question but what any future expansion program of major significance of the Savannah River plant will be directly benefited from the availability of power from Hartwell. It is our understanding that the Savannah River plant of the Atomic Energy Commission will require approximately 1,500 cubic feet per second of water in its manufacturing process. The withdrawal of this quantity of water from the Savannah River will result in the lowering of navigational depths from 1 foot to 1% feet, so that at certain reaches of the river the authorized 7-foot depth will not be available. The completion of the Hartwell project will be required to increase the low-water flows of the river to offset this reduction in depth due to the withdrawal of water by the Savannah River plant. Any future expansions of this plant will undoubtedly require an additional supply of water, which, without Hartwell, would serve to reduce seriously the potential navigational capacity of the river. The completion of the Hartwell project would require about 3 years without interruption after construction has been initiated. Unfortunately, it is not possible to wait for the development of shortages in power and water before initiating the construction of a project of the type of Hartwell. Its needs must be anticipated and construction time must be allowed prior to the development of shortages. It is, therefore, certainly reasonable to assume that the logical development of the Hartwell project requires continued planning and construction as quickly as possible. In order to meet anticipated demands in the year 1956, construction of the Hartwell project should be initiated in the fiscal year 1954. As a result of the foregoing reasons, it is respectfully requested that your committee include in its appropriations the sum of $4 million to be made available for expenditure during the coming fiscal year beginning July 1, 1953. Respectfully submitted. HARTWELL STEERING COMMITTEE, Chairman, Clark's Hill Authority of State of South Carolina, EDGAR A. BROWN, General Counsel, Clark's Hill Authority of State of South Carolina. AUGUSTA, GA., April 1, 1958 Mr. HAND. Senator, the committee thanks you for that clear and interesting statement. Mr. RILEY. Has any private power company offered to build this project? Mr. MASON. Not to my knowledge. Mr. BROWN. No, sir: they have not. Mr. McWHORTER. No application for a license has been made to the Commission. Mr. RILEY. So the only way in which this could be constructed would be for the Government to go in and complete the project? Mr. BROWN. That is correct, sir. Our next witness is the Honorable Roger B. McWhorter, chief engineer of the Federal Power Commission. Mr. McWhorter is an outstanding engineer, has been connected with the Federal Government for approximately 35 years, and is well known to you and all of the members of the committee. Mr. McWHORTER. Mr. Chairman and gentlemen of the committee, the authorized Hartwell Dam project is one of the two very large projects included in the comprehensive 11-project general plan for development of the water resources of the Savannah River Basin, the other comparably large project being Clark Hill, the construction of which is substantially completed. Together, Hartwell and Clark Hill will produce somewhat more than half of all the electric energy ultimately to be produced by the entire system of 11 projects. The reservoir to be created by the Hartwell Dam, with storage capacity of 3,495,000 acre-feet below the maximum surcharge elevation, ranks among the very largest reservoirs east of the Mississippi River. Its surface area at elevation 660 feet, top of the power pool, is 56,400 acres. Consideration of these facts along with the power installations of 180,000 kilowatts initially and 300,000 kilowatts ultimately, leads to the inevitable conclusion that Hartwell will be ideally adapted for operation on peaks of the system load. And, Mr. Chairman, digressing for a moment, power of that kind is extremely valuable, because the project can pick up a load of 300,000 kilowatts instantly when other large units in the system go out of operation for one cause or another. In this connection, the following paragraph is quoted from a letter dated November 3, 1952, from the regional engineer of the Federal Power Commission at Atlanta, Ga., to the district engineer, Corps of Engineers, at Savannah: The Hartwell project as planned is ideally suited to provide peaking-type power. The physical characteristics and hydraulic conditions obtained at the site, including adequate space for a large powerplant, a large amount of waterstorage capacity, abundant runoff, and a high-power head, make it one of the most favorable sources for hydroelectric peaking-power installations remaining in the Southeast. As to the need for the power to be produced by this authorized project, there is no difference of opinion among those competent authorities who are most familiar with the rapidly growing power market, and the relationship between power demand and power supply, in that region. Thorough studies by the Atlanta office of the Federal Power Commission indicate that all of the power to be produced at Hartwell will be absorbed very promptly after the project works are completed. It is believed, in fact and that is my personal belief, Mr. Chairman-that the power output of this project will be absorbed as rapidly as the generating units are installed to produce it. Approximately 4 years as a minimum will be required to construct the project and make the initial installation of 180,000 kilowatts ready for commercial operation. And may I explain that when I say "4 years," I have in mind the usual manner in which appropriations are made for projects of this kind. If the appropriations were made as rapidly as needed by the Army engineers, they could complete this project in less time than that. It is seen, therefore, that even if the construction should be commenced in January 1954, the project might not be completed until about June 1958, and the Federal Power Commission studies indicate that by 1958 the demand for power in that market area will not exceed the supply by 558,000 kilowatts, whereas Hartwell could not supply anything like that much. That is very clear evidence of the need for the project. It is hoped, Mr. Chairman, that you and your colleagues will appreciate the significance of this statement. Not only would there be no reserve capacity but the aggregate demands for power would be very substantially greater than the available power supply. This statement is based upon a full consideration of all generating plants, both hydro and steam, now under construction or definitely contemplated for construction. It is difficult to understand, therefore, how there can possibly be any doubt regarding the need for the Hartwell power. BENEFITS TO DOWNSTREAM PLANTS The average annual energy output of the Hartwell powerplant is estimated by the Corps of Engineers at 453 million kilowatt-hours, and in addition the flow regulation to be provided by the Hartwell Reservoir will convert 50 million kilowatt-hours of Clark Hill secondary energy into prime power each year. Thus Clark Hill will be substantially benefited by Hartwell, and that element of value should be credited to Hartwell. Likewise, the Middleton Shoals and Goat Island projects downstream from Hartwell, both of which have been recommended for construction as parts of the comprehensive plan, will be benefited by the Hartwell flow regulation-those being projects which most probably will be constructed by private enterprise-and the privately owned Stevens Creek project below Clark Hill will be benefited in like manner. ECONOMICS OF HARTWELL PROJECT Assuming a market for the entire output of the Hartwell powerplant-which in view of the rapidly increasing power requirements of the region and the attractive characteristics of the Hartwell development seems to be a safe assumption-it is possible that the power revenues alone would well justify the entire investment in this project. And of course the flood control and other benefits will be substantial. The benefit-cost ratio of the Hartwell project as shown in the definite project report is 1.48 to 1. You will recall that at the time of certain previous hearings before your committee the B-C ratio was much higher, the difference being due largely to the fact that in deriving the smaller ratio the Corps of Engineers did not give effect to the value of flood protection afforded by Hartwell to some 200,000 acres of fertile lands lying along the river between Augusta and Savannah. They are fully cognizant, however, that the 1.48-to-1 ratio does not reflect the true economic value of this project; but nevertheless the ratio is high enough to make the project attractive, and show it to be a sound investment. The certainty that there will be additional benefits of great importance will be reassuring to your committee and to the Congress. TYPE OF WATER-CONTROL PROJECT TO BE BUILT BY THE UNITED STATES The adoption by the Congress of a general plan for the development of the water resources of any river basin does not in any way preclude development of waterpower possibilities therein by private enterprise, this question having been settled definitely by the Supreme Court of the United States in its March 16 decision of the Roanoke Rapids case (345 U. S. 153). But even so, in order to protect the public interests the United States must build certain projects which private interests cannot reasonably be expected to build. As to the extent of the participation of the Federal Government in the development of water resources, Secretary of the Interior McKay announced his views and the position of the administration in a press-conference statement on May 5, and during the evening of the same day in speaking before the National Small-Business Men's Association he amplified and clarified his own position with respect to this important matter. In supporting private industry's role in the development of hydroelectric power, Secretary McKay pointed out that certain large multipurpose dams essential to the proper development of the water resources involved do not lend themselves to private construction and stated that for this reason the Government must continue to build such dams. Secretary McKay, as reported in the press, stated: We believe that private enterprise, wherever possible, should be allowed to develop waterpower projects, provided it does not interfere with the orderly developments of our natural resources. We need the support of the Federal Government in development of multipurpose dams on main stems of rivers, but where private enterprise can do a job that can assist in the overall project, it should be allowed to do so. Applying these criteria to Hartwell we find that the project is on the main stem of the Savannah River, one of the most important streams in the southeastern United States: that it is an exceptionally large multipurpose water-control project which would hardly be built by private enterprise; and that its construction by the United States is essential to an orderly and reasonably complete development of the valuable water resources of one of the more notable river basins of the country. It appears certain, therefore, that under the policy announced by the Secretary of the Interior, Hartwell is in the category of projects to be built by the United States. Mr. HAND. Thank you, Mr. McWhorter. Mr. BROWN. Our next witness is Congressman Dorn. Mr. DORN. I appreciate you are pressed for time. I do want to say this, that the Federal Power Commission has on numerous occasions time and again stated that there will be a very serious power shortage in that area in 1956. I have a statement here which I am going to ask unanimous consent to have placed in the record, which includes a news story and speech by J. B. Harris, one of the greatest exponents of free enterprise in South Carolina. Mr. HAND. And I know you are. (The newspaper story and speech by Mr. Harris were filed with the committee.) Mr. DORN. Thank you. Mr. Harris points out that there is not enough power in Greenwood now to start operations at his organization's Durst plant, which is now under construction, indicating that there is a definite power shortage. (The matter referred to follows:) Hon. GLENN R. DAVIS, Chairman, House Committee on Appropriations for Civil Functions, DEAR CHAIRMAN DAVIS: With your permission, I should like to file this letter with your committee reiterating my vital interest in an appropriation for planning and construction work on the Hartwell multipurpose project which, as you know, is situated on the Savannah River and which is in the congressional districts represented by my good friend Congressman Paul Brown, of Georgia, and myself. The Savannah River forms the boundary between the States of South Carolina and Georgia, and is 314 miles in length. The headwaters area is on the southern slope of the Blue Ridge Mountains in northeastern Georgia and southwestern North Carolina and the watershed has a total area of 10,579 square miles. It is one of the most important streams entering the Atlantic Ocean from the South Atlantic States, and the Hartwell site is one of the best undeveloped sites for power, navigation, flood control, recreation, and general water-regulation purposes in the United States. The economy of my section is based by and large on industry and agriculture. In the State of South Carolina there has been a substantial industrial growth during the past few years and our industrial growth in the future cannot continue unless more power is made available. Only a few weeks ago one of the most prominent and substantial industrialists of the South, a prominent and highly respected citizen of my home city of Greenwood, S. C., made a public address before the chamber of commerce of that city in which he stated that Greenwood County, S. C., a county that is within 50 miles of the Hartwell site, is standing “on the verge of serious electric-power shortage." Mr. Harris is vice president of the largest industrial enterprise in my district, a company that provides employment for several thousand persons, and in his speech he made the startling statement that "there is not enough power in Greenwood now to start operations at his organization's Durst plant, which is now under construction." This is a statement by one of the most conservative and responsible manufacturers in the South. I am attaching to this letter a reprint of a news article which appeared in the Anderson, S. C., Independent, entitled "Lack of Power Threatens New Industry in Greenwood County," which was based on Mr. Harris' speech. Mr. Chairman, I request that the attached news item be included in the record. The need for more power in this area for civilian requirements is pronounced and on this basis alone the Hartwell Dam can be justified. The huge Savannah River plant of the Atomic Energy Commission is located only about 100 miles from the Hartwell site, and if a large expansion takes place there, which is within the realm of a possibility, there is every reason, I think, to believe that the Hartwell Dam would be useful and needed in such an expansion program, not only as a source of additional power, but from the standpoint of better-regulated flow of water for this plant, which, without any expansion, will use about 1 billion gallons of water per day, and any affect that Hartwell would have on lowering the temperature of the water would be beneficial to the plant and make its cost of operation more economical and result in that much saving to the taxpayers of the country. As someone recently said, "We cannot afford military weakness," and in my opinion this project can be justified on the basis of its possible need for defense purposes. The site of this dam is in an area where large defense manufacturing would take place if we should become involved in another war. Our agricultural economy has suffered heavily for a long number of years from the ravages of soil erosion, so much so that the Soil Conservation Service has recently made an extensive and thorough survey of the Savannah River watershed in which a program for runoff and water-flow retardation and soil erosion prevention is recommended, and in this program the Hartwell Dam would be of far-reaching value to the agriculture of my section. During the current month one of the large and successful farmers of California revisited his native home in Piedmont, S. C., and he reminded the farmers and businessmen of the Hartwell area that they should begin to make plans for irrigating their crops. He pointed out that in 1952 “40 percent of the total cotton produced in the United States was grown under irrigation," and he referred to the fact that the Hartwell Dam could be of great and permanent value to our future agriculture program by assuring adequate water conservation. There are other features of the Hartwell project which I think are important, including flood control, navigation, and recreation. In view of the foregoing and on the basis of the favorable reports of the Corps of Engineers, the President's Special Board on the Savannah River and 28690-53-pt. 2-8 |