an additional $3%1⁄2 million, to install an additional unit this year at Bull Shoals Dam. Subsequent years could carry additional appropriations, to install units each year thereafter, until all of the eight units have been installed with Bull Shoals operating at maximum capacity.

SUMMARY

Millions of people in the Southwest area have become completely dependent upon electric service. Electricity has become an economic necessity for Americans, but particularly for the American farm people. The widespread use of electricity has increased tremendously for farm production and for general and necessary household purposes. The whole economy of the Southwest area is completely tied in with electric power. Our natural resources are our most precious possessions. Only through the wisdom of Congress and other elected and appointed officials can these resources be preserved and utilized for productive purposes.

Water supply is becoming one of our most serious and pressing problems not only to our farmers of America but also the people living in cities and smaller communities. The 2-year drought in the Southwest area has created a serious and economic problem for the people in that area. The natural water table is dropping from year to year creating a threat to our fresh water supply. It is the moral responsibility of Congress to support and promote an aggressive conservation program of our water resources, together with the utilization of this water for productive purposes in the generation of hydroelectric power. On behalf of the Advisory Committee on Power for the Southwest, and on behalf of the millions of people living in the Southwest area, we respectfully request and urge your favorable consideration and approval of the necessary funds for development and construction of Table Rock Dam and for additional productive capacity at Bull Shoals Dam.

Thank you.

STATEMENT OF JULIUS HELM, EXECUTIVE MANAGER, MISSOURI STATE RURAL ELECTRIFICATION ASSOCIATION

Mr. Chairman and Gentlemen of the Committee, my name is Julius Helm I am executive manager of the Missouri State Rural Electrification Association, which is an association of 41 REA distribution cooperatives and 6 generation and transmission cooperatives, serving approximately 230,000 rural consumers in Missouri.

Because the membership of the association that I represent consists primarily of farmers, we are, therefore, vitally concerned with all aspects of water resources development. Flood control, prevention of erosion, avoidance of unnecessary inundation of good farm lands, water supply, irrigation and hydroelectric power-all these are far more than theoretical considerations with us. They involve our direct experience with water.

By their very acts and deeds, the farmers of Missouri have proved time and time again that they are sympathetic with those seeking outdoor recreation and with local interests who may be affected by reservoir inundation. Actually, our members may find themselves in either of these groups. But, I can assure the members of this committee that the members of our association are unwilling to see these alleged values, in which we too are interested, used as a front behind which private monopoly can attack a program for the development of low-cost hydroelectric power.

Any argument or contention that the construction of the proposed Table Rock project would completely destroy, or even materially impair, all wildlife and recreation facilities in the area is nothing less than a "smokescreen," totally without foundation or fact. People who have lived their entire lives in the affected area, some of whom undoubtedly are here today, can verify to the falsity of all such assertions.

Because the committee undoubtedly is familiar with the Table Rock report issued by the Corps of Engineers, dated December 18, 1953, it does not seem necessary to discuss the proposed project with respect to feasibility, power needs in the area, et cetera. Therefore, the remainder of my remarks will be confined specifically to the reasons why the construction of Table Rock Dam is of such vital importance to the farmers, the future of the rural electric coopera tives and the Government.

器 It is a matter of record that practically all REA loans to the rural electric cooperatives were made on the assumption that the preference clause of the 1944 Flood Control Act would be carried out in spirit and letter and that lowcost power would be made available to the rural electric cooperatives and other preference customers. It is our understanding, however, that all low-cost power in the area has been completely absorbed, primarily because over 40 percent of the total power available for marketing by Southwestern Power Administration has been contracted to nonpreference customers. Therefore, without the benefits of low-cost power from Table Rock Dam, the repayment of present REA loans to the Government will be seriously jeopardized. Furthermore, without Table Rock Dam there doesn't appear to be even the remotest possibility of the rural electric cooperatives being able to serve the remaining 12 percent of rural people in Missouri who still are without electric service.

Attached to this statement is resolution adopted during the annual membership meeting of our State association, February 26, 1954, in support of Table Rock Dam, that I would appreciate being made a part of the record of these & hearings. Out of some 500 farm leaders who attended this meeting not one single vote was cast against the resolution.

On behalf of the entire membership of the association which I represent, I respectfully urge this committee to give every consideration to the immediate and I accelerated construction of the Table Rock project.

"TABLE ROCK DAM

"Whereas the construction of Table Rock Dam was authorized by the Congress in 1941; and

"Whereas the Congress, to date, has appropriated $4 million of which approximately $1 million has been expended in construction activities; and

"Whereas the power requirements of farmers and other consumers in the southwest area approximately double every 5 years; and

"Whereas this multipurpose project will contribute 540 million kilowatt-hours annually by its own output plus increased production by downstream facilities; and

"Whereas, the United States Army engineers, under date of December 16, 1953, furnished to the Congress a report, again completely justifying the project as necessary and feasible and recommending its continued construction: Now, therefore, be it

"Resolved, That the Missouri State Rural Electrification Association duly assembled in its 17th annual membership meeting at Jefferson City, Mo., this 26th day of February, 1954, urgently requests that the $3 million, now impounded by the House and Senate Appropriations Committees, be released at once; and be it further

"Resolved, That we recommend to the Congress that an additional $8 million be appropriated to continue construction during the next year; and be it further "Resolved, That a copy of this resolution be sent to each Member of the United States Congress.' Certified to by:

GEORGE N. ROBBINS, President.
J. W. CROUCH, Secretary.

STATEMENT OF MARK T. PRIGMORE, GENERAL SUPERINTENDENT, CITY OF LAFAYETTE, LA., UTILITIES SYSTEM

Mr. Chairman and gentlemen of the committee, my name is Mark T. Prigmore. I am general superintendent of the city of Lafayette, La., utilities system. For the past 3 years I have been a member of the advisory committee on power for the Southwest. This group is made up of REA cooperative leaders and municipalities who operate their own electric systems from the six-State area of Texas, Louisiana, Arkansas, Missouri, Kansas, and Oklahoma. This committee is interested in the development of this area through the development of an adequate power supply both present and future. This development can only come about through the proportional development of public and private power, because of the heavy rural and small urban population. Only through this plan can a stable power cost be maintained in this area.

The area is made up of a large rural population and small cities. The large cities associated with this area are located on the outer perimeter, making the area predominately rural.

In view of the fact that in the past the Government has built multipurpose dams within the area mentioned, it is only fair that the power produced from these dams be made available to the people within the area at a reasonable rate. This can be done by the continued construction of multipurpose dams in the river basins of the area mentioned.

Of all the proposed multipurpose dams, Table Rock Dam in southern Missouri is the most important of these projects for the immediate future. Table Rock Dam will add approximately 150,000 kilowatts, plus downstream benefits to Bull Shoals. With the addition of this dam, the REA cooperatives and munia. palities will be in a position to regulate their wholesale-power costs, and estimate their future costs. This position for these public power distributors will assure low-cost power to the rural and small communities, which will materially contribute to the long-range development of the Southwest area.

In summary, we feel that the future development of the Southwest area is largely dependent on the continued construction of multipurpose dams with the end to complete the projects that have been proposed. The rural and urban population of the area will all profit from the program of flood control and power production.

STATEMENT OF TRUMAN GREEN, Manager, CENTRAL ELECTRIC POWER COOPERATIVE, JEFFERSON CITY, Mo.

Mr. Chairman and members of the committee, this testimony is given in support of the completion of Table Rock Dam as soon as practical.

The immediate need for the electric power expected from Table Rock Dam is given here.

Our cooperative is one of the generation and transmission power cooperatives made feasible and constructed on the basis of economics provided by a contract with the Southwestern Power Administration.

This contract provided that the Southwestern Power Administration deliver to our cooperative 70,000 kilowatts of power for use by rural people. Two other generation transmission power cooperatives in the vicinity of Table Rock Dam likewise has contracts with the Southwestern Power Administration with the amounts of power tabulated as follows:

With the contract obligation to purchase our steam power and deliver the above amounts of power to us, the Government by the action of Congress in eliminating the approval of sufficient continuing fund or the use of the continuing fund has abrogated our contracts.

After making our contracts inoperative the Congress requested that the cooperstives make other arrangements to survive. Since October the above-named cooperatives have tried to integrate with the private power companies in the area. To be sure of the amount, of power that would be available to us, we asked the Interior Department to make a commitment to us on the power avail able and the price to be sold. In a letter dated January 29, 1954, from the De partment of Interior over the signature of Fred G. Aandahl, Assistant Secretary of the Interior, was the following:

"Confirming our discussions with you, the Government, acting through the Southwestern Power Administration, is pleased to offer to the generation and transmission cooperatives after February 28, 1954, electric power and energ in the amount of 100,000 kilowatts of capacity. This service can be offered on the basis of an interim rate of 5.25 mills per kilowatt-hour."

A copy of the entire letter is attached.

From this official commitment of 100,000 kilowatts you will note that we are short, 95,000 kilowatts from that contracted originally, and the Department of Interior claims that no other power is available until other Government hydro becomes available. The completion of Table Rock Dam is essential to make up this shortage.

With only 100,000 kilowatts committed to the G. and T.'s the negotiations for integration with private utility companies are doomed to failure and survival of the rural electric program in this area is doubtful.

As further evidence for the need of Table Rock power, we note that on February 4, 1954, Mr. Douglas G. Wright, Administrator, Southwestern Power Administration, sent a letter to the Municipal Power and Light Department, City of Hermann, Mo., which in part said: “Additional power requirements of the municipality will be supplied by the Government only if the Government has such capacity available. We regret very much to advise you that the Government does not now have available for this purpose any additional power capacity." A copy of this letter is also attached.

It is understood that letters containing the same statement were sent to over 35 other municipalities and rural electric distribution cooperatives in Arkansas, Oklahoma, and Missouri.

There is no doubt that the power from Table Rock Dam is already over due, and further delay will certainly penalize the rural people in this area by curtailing the use of power for farm production.

DEPARTMENT OF THE INTERIOR,

Mr. JOHN BUCK,

OFFICE OF THE SECRETARY, Washington, D. C., January 29, 1954.

Chairman, G. and T. Committee, Cameron, Mo. DEAR MR. BUCK: In discussions with you and representatives of the N. W. Electric Power Cooperative, Inc., the Central Electric Power Cooperative, the KAMO Electric Power Cooperative, Inc., the Western Farmers Electric Cooperative, the SHO-ME Power Corp., and the M. & A. Electric Power Cooperative, you asked two questions which you stated were important in your discussions with utilities for permanent integration contracts. These questions were: (1) How much power has the Government available for sale to us? (2) How much will this power cost? Confirming our discussions with you, the Government, acting through the Southwestern Power Administration, is pleased to offer to the generating and transmission cooperatives after February 28, 1954, electric power and energy in the amount of 100,000 kilowatts of capacity with energy in the amount of 175 kilowatt-hours per kilowatt of capacity per month. The above power and energy will be reserved for the generating and transmission cooperatives for a reasonable period of time. This offer is in addition to power and energy committed to M. & A. Electric Power Cooperative under contract No. Ispa-479 and to SHO-ME Power Corp. under contract No. Ispa-209.

This service can be offered on the basis of an interim rate of 5.25 mills per kilowatt-hour, which is estimated to result in revenue to the Government equivalent to what it is receiving for similar service. It is understood that such a rate will be effective until rate studies made by the Department indicate different rate requirements and with the further understanding that rates in power commitments by the Southwestern Power Administration during the entire period of any contract will be subject to periodic redetermination to take into account changing costs or changing conditions as they are encountered. It should also be understood that the proposed interim rate and any necessary adjustments in the rate are subject to confirmation and approval by the Federal Power Commission before it is effective.

The electric power and energy would be metered and delivered by the Government to the generating and transmission cooperatives at the point or points of interconnection with the facilities of the generating and transmission cooperatives from the interconnected system of the Government's generating and transmission facilities.

The Government, through the Southwestern Power Administration, may also have from time to time available for disposal secondary and dump energy in addition to the electric power and energy set forth above. The Government is in a position to offer to the generating and transmission cooperatives such amounts of secondary or dump energy as the Government in its sole judgment may have available for disposal to the generating and transmission cooperatives from time to time at an interim rate of 1.25 mills per kilowatt-hour subject to the confirmation and approval of such rate by the Federal Power Commission. Sincerely yours,

FRED G. AANDAHL, Assistant Secretary of the Interior.

DEPARTMENT OF THE INTERIOR,
SOUTH WESTERN POWER ADMINISTRATION,
Tulsa 1, Okla., February 4, 1954.

MUNICIPAL POWER AND LIGHT DEPARTMENT,

(Attention: The Manager.)

Hermann, Mo.

GENTLEMEN: The electric service agreement dated February 5, 1951, betwees the city of Hermann, Mo., and the Southwestern Power Administration (Ispa412) specified that the Government was obligated to furnish the municipality 550 kilowatts of power capacity and such accompanying energy as the muni pality may require. In order not to penalize the municipality during the period that it was connecting customers to its system the contract was amended o May 19, 1953, reducing the contract demand to 250 kilowatts.

Under section 3 (a) of the said agreement additional power requirements of the municipality will be supplied by the Government only if the Government has such capacity available. We regret very much to advise you that the Government does not now have available for this purpose any additional power capacity In light of the foregoing, this letter will serve to inform the municipality th until additional power capacity is available to this Administration, any future increase in the municipality's power requirements, above the 550 kilowatts spec fied in the original contract, must be supplied from some source other than the Government.

The Southwestern Power Administration regrets that it cannot assume the responsibility of being the sole supplier of the municipality's power requirements As you know, however, the transmission system of this Administration is inte grated with the systems of private utility companies and generating and trat mission cooperatives. We want to assure you that we will cooperate in every possible way to assist you in working out arrangements to secure from some other source any additional power capacity the city of Hermann may require. Very truly yours,

DOUGLAS G. WRIGHT, Administrator

STATEMENT OF ERNEST C. WOOD, MANAGER, FARMERS' ELECTRIC COOPERATIVE, INC... CHILLICOTHE, Mo.

Mr. Chairman and gentlemen of the committee, my name is Ernest C. Wood. I live at Chillicothe, Mo., where I am manager of Farmers' Electric Coopera tive, Inc. Also, I am the elected representative from Missouri on the board of directors of National Rural Electric Cooperative Association, and am chairman of the wholesale power committee of the Missouri State Rural Electritication Association.

My appearance before your committee is to urge the immediate construction of Table Rock Dam, in southern Missouri. This dam was authorized by Congres in 1941 and contruction activities were initiated following appropriation of million in 1953.

An additional $1 million was appropriated in 1954, but, at the same time, the Congress adopted a conference committee report freezing the funds pending fa ther action by the Appropriations Committee. The conference report provided the Army engineers to analyze the need for the power in the area and to re analyze the estimated cost of the project.

The engineers' report was submitted to the Congress on December 16, 1968, favorably satisfying all questions raised in the conference report. Specifical it emphasizes that the power is needed in the area, that it can be efficienta utilized in the integrated power facilities in the area, that the power facilities will be self-liquidating and that the project can be built within present estimated costs. The report recommends continued construction of the project.

The power situation in the area faces a crisis, prior to the earliest possible erstruction of the project. This probable crisis results from diversion of 15000 kilowatts of Bull Shoals Dam capacity to serve an aluminum plant in Arkansas Actually the aluminum plant load was only 110,000 kilowatts but, in order to induce the Arkansas Power & Light Co. to deliver the power, the Federal Go ernment had to agree to turn over to the company 150,000 kilowatts of firm power, plus payment to them of 12 mills per kilowatt-hour as wheeling charges.

Prior to the Korean crisis, at which time agreements and contracts were drawn to place the aluminum plant in Arkansas, this same Bull Shoals power had been contracted to preference-type customers. These customers willingly