B Col. L. H. HEWITT, CENTRAL POWER & LIGHT Co., Corpus Christi, Tex., April 14, 1958. Commissioner, International Boundary and Water Commission, El Paso, Tex. DEAR COMMISSIONER HEWITT: We have reviewed the data contained in your letter of March 7, 1958, outlining the results of your study No. DF-2, relative to a prospective power development at Diablo Dam near Del Rio, Tex., on the Rio Grande. It is our understanding that these studies were made for the purpose of maintaining a minimum of 75,000 kilowatts of peaking capacity at Diablo to the extent consistent with releases of water for irrigation purposes. Your letter requests us to evaluate these studies and advise you regarding our opinion of the value of falling water at the Diablo site for the generation of power. The Government would construct the dam, penstocks, and intake works for delivery of water and offer for sale the energy from falling water for power generation. The purchaser would be expected to construct and operate the powerplant and facilities necessary to transmit the power to markets in Texas. Since we have had no opportunity to examine the physical features or foundation requirements of the site proposed for the construction of this powerplant, we cannot at this time formulate firm estimates of cost. We have, however, reviewed cost estimates prepared by several Government agencies in connection with the study of similar hydropower developments in other areas. These cost studies indicate that the Diablo hydroplant and its electrical facilities should cost no more than $140 per kilowatt of installed capacity. We have used this figure in evaluating falling water at Diablo. Should subsequent cost studies at Diablo show that the powerplant costs will differ appreciably from this base, the value of falling water would accordingly change. Our evaluation is also based on 100 percent availability of peaking capacity. We recognize that according to your studies, shortages will exist from time to time and while we are willing to accept the premise that hydropower can never be 100 percent reliable, our estimates of its value are computed on the basis that some regulation of water releases can be effected so that a power head can be maintained and energy deliveries can be made in a manner at least as good, if not better, than indicated by your study DF-2. This study indicates that there would be periods as long as 28 years when no capacity shortages would exist. While we recognize that your studies have given responsible consideration to past and future authorized stream depletions, the Diablo project is unlike some other projects in that it is possible to legalize and make extensive future diversions between the Diablo site and Falcon Dam which might seriously affect hydropower values at the Diablo site. We would, therefore, like to reserve the right to modify our evaluation of falling water in accordance with whatever action a regulatory or legislative body might take toward exercising control of or enacting legislation affecting the use of water on the Rio Grande below Fort Quitman, Tex. As the result of our prior discussions with you on these matters and because we recognize the great benefit this project will provide to the people of Texas, we sincerely believe that many of the factors outlined above will be resolved prior to the time construction begins. Nevertheless we feel that they should be recognized along with this evaluation which we understand will be used in your feasibility study. Recognizing then that before a formal contract to purchase falling water can be formulated, several issues now in debate which are of a State, National, and even international character are yet to be resolved and that the solution to these issues may affect the value of water and power from dams built across the Rio Grande, we submit this proposal and in connection therewith our estimate of the value of power and energy from water releases at the proposed Diablo Dam: Central Power & Light Co. will construct, operate, and maintain a hydroelectric powerplant, together with the necessary tieline facilities, all of a size appropriate to the economic generation and transmission of power from Diablo Dam site. In consideration for the service of developing and maintaining head, and for providing falling water to this powerplant in a manner similar to that indicated in your study DF-2, we consider that payment averaging $337,000 per year will represent a fair value for the use of this water in the generation of power and energy at the Diablo site. We hope that the above will be of assistance to you and your staff in formulating a plan for developments of this most important international project. Yours very trulv. C J. L. BATES, President. EXECUTIVE DEPARTMENT, Austin, Tex., December 11, 1958. Hon. R. R. RUBOTTOM, Jr., The Secretary of State, Washington, D.C. DEAR MR. SECRETARY: I transmit herewith the order of the State Board of Water Engineers approving the feasibility of the proposed Diablo Dam and Reservoir project, submitted to me for review and comment. This report of the board also ratifies portions of the board order dated October 24, 1958, which was issued subsequent to a public hearing held on the preliminary report of this project submitted by U.S. Commissioner L. H. Hewitt, and referred to by me in my letter addressed to you on November 13, 1958. I hereby concur in the board approval and urge prompt action on this most important project. Recent devastating floods which have occurred on the Rio Grande, causing great loss of property and human suffering on both sides of the river fully justify the highest priority which can be given to this project. Thanks for your cooperation. Sincerely yours, BOARD OF WATER ENGINEERS AUSTIN PRICE DANIEL, Governor. AN ORDER approving the feasibility of the Federal project of Department of State, International Boundary and Water Commission, United States and Mexico, Rio Grande International storage dams projects, Proposed Diablo Dam and Reservoir and ratifying portions of a Board Order dated October 24, 1958 Be it ordered by the Board of Water Engineers of the State of Texas: SECTION 1. STATEMENT OF AUTHORITY. Article 7472e, Revised Civil Statutes, as amended, provides that upon receipt of any engineering report submitted by a Federal Agency seeking the Governor's approval of a Federal Project, the Board of Water Engineers shall study and make recommendations to the Governor as to the feasibility of the Federal Project. The Board shall cause a public hearing to be held to receive the views of persons or groups who might be affected should the Federal Project be initiated and completed. SEC. 2. STATEMENT OF JURISDICTION. (a) By letter dated November 13, 1958, the Honorable Price Daniel, Governor of Texas, forwarded final report on proposed Diablo Dam and Reservoir requesting that the Board study said report and enter its order finding said project to be feasible or not feasible. (b) In accordance with Article 7472e, the Board caused a public hearing, after due notice by publication, to be held on September 18, 1958, at 10:00 A.M. in the office of the Board at Austin, Texas, on the preliminary report of the proposed Diablo Dam and Reservoir project and at which time all those interested or who may be affected should the project be initiated and completed were requested to come forward and give testimony. SEC. 3. After fully considering all the evidence and exhibits presented by persons and groups who may be affected should the Federal Project be initiated and completed, including the matters set forth in Section 4 of Article 7472e, the Board found that the said Federal Project was feasible and that the public interest would be served thereby, and on October 24, 1958, entered its order approving the preliminary report on the Federal Project of the Department of State, International Boundary Commission, United States and Mexico, Rio Grande International Storage Dams Project, proposed Diablo Dam and Reservoir, subject to the following: (a) The proposed Diablo Dam must be integrated with other water conservation activities on the Rio Grande below Ft. Quitman, Texas, and operated in such manner that the amount of water allocated to the American section and available for release from and through Falcon Dam which would otherwise be available for use by existing lawful diverters and appropriators of the American section below Falcon Dam will not be impaired or diminished; and (b) All releases of conservation storage water allocated to the American section from the proposed Diablo Dam for hydroelectric power purposes shall be subordinated to higher priority or preference uses of lawful diverters and appropriators of the American section below Diablo Dam and in accordance with State law. SEC. 4. The recommendations above set forth and in Section 4 of said Board order dated October 24, 1958, appear to have been incorporated in the final report of proposed Diablo Dam and Reservoir and there is no other substantial difference between the preliminary and final report of the proposed Diablo Dam and Reservoir. To the extent said recommendations may not be incorporated in and made a part of the final report of proposed Diablo Dam and Reservoir and the proposed project operations, they are hereby reaffirmed, ratified and made a part of this order. Subject to section 4 above, the Federal Project of the Department of State, International Boundary Commission, United States and Mexico, Rio Grande International Storage Dams Project, proposed Diablo Dam and Reservoir is hereby approved as to its feasibility. SEC. 5. SEC. 6. It is further ordered that a certified copy of this order be transmitted to the Governor. SEC. 7. This order shall take effect and be in force on and at the day of its passage and it is so ordered. Signed in the presence of the Board. DURWOOD MANFORD, Chairman. I certify that the foregoing order was adopted by the State Board of Water Engineers at a meeting held on the 8th day of December A.D. 1958, upon motion of Member Dixon, Chairman Manford voting "aye", Member Dixon voting “aye", and Member Dent voting "aye." BEN F. LOONEY, Jr., Secretary. Hon. R. R. RUBOTTOM, Jr., APPENDIX II Department of State, Washington, D.C. A THE SECRETARY OF COMMERCE, Washington, D.C., December 10, 1958. DEAR MR. RUBOTTOM: We greatly appreciate the opportunity to review the report on proposed Diablo Dam and Reservoir as prepared by the United States Section of the International Boundary and Water Commission, United States and Mexico, transmitted with your letter of October 30, 1958. The report mentions, on pages 103 and 104, that certain highway relocations would be necessary to replace existing roads that would be inundated by the proposed reservoir. After consulting with the Texas Highway Department, our Bureau of Public Roads has informed us as follows: "The present highway distance from Del Rio to Comstock is 30 miles. The location suggested by the American Section of the International Boundary and Water Commission would add approximately 5.7 miles to this distance. It would also introduce three highway-railroad grade separations, one on U.S. 90 just north of Del Rio, another on U.S. 90 between Devils River and Comstock and the third on U.S. 277 north of Del Rio. "An alternate relocation plan, suggested by the Texas Highway Department, would add approximately 1.1 miles to the present highway distance between Del Rio and Comstock and some 2.5 additional miles to the present highway distance on U.S. 277. However, U.S 277 carries only about 25 percent as much traffic as U.S. 90. On this alternate location the cost of the San Pedro Canyon crossing could be quite expensive, and would involve an extremely high bridge with heavy embankment approaches that would have to be well riprapped. There might not be much cost differential between such a crossing and the route proposed by the International Boundary and Water Commission, particularly since the latter would involve three highway-railroad grade separation structures and additional highway mileage. "The grade separation structures noted above could be avoided if the entire railroad relocation could be made on the south side of the relocated highway. Where the relocated transportation facilities would cross reservoir areas, enormous savings in construction costs could be effected by having the highway and the railroad placed on the same embankment." In the light of the foregoing, the Bureau of Public Roads recommends that the final relocation plans for the affected highways be deferred until the relocation plan for the railroad has been definitely established; that the relative merit of relocating both of these transportation facilities on a common embankment across reservoir areas should be carefully considered before a final decision is reached; and that the final details for the highway relocation should be developed in cooperation with its division office in Texas and the Texas Highway Department. The Department of Commerce concurs in those recommendations. It is being assumed that the entire cost of the highway relocations will be financed by the water project. The Coast and Geodetic Survey advises that the horizontal and vertical geodetic controls in the project area are adequate. Any additional leveling which may be need for project purposes can be accomplished by project engineers. If the Department of Commerce can be of further service, please feel free to call on us. Sincerely yours, F. H. MUELLER, Under Secretary of Commerce. 259 51563-60 -18 B FEDERAL POWER COMMISSION, Hon. JOHN FOSTER DULLES, Secretary of State, Washington, D.C. DEAR MR. SECRETARY: In response to the request contained in Assistant Secretary Rubottom's letter of October 30, 1958, the Federal Power Commission offers the following comments on the report entitled "Proposed Diablo Dam and Reservoir." dated September 1958, prepared by the United States Section of the International Boundary and Water Commission, United States and Mexico. It is observed that the cited report finds that the most suitable plan for a second major international storage development on the Rio Grande would consist of a concrete and earth-fill dam located at the Diablo site about 12 miles upstream from Del Rio, Tex., creating a reservoir with a total storage capacity of 5,660,000 acre-feet. The plans provide for the inclusion of three 17-foot diameter steel penstocks in the nonoverflow sections on each side of the international boundary, permitting the future installation of 100,000 kilowatts of generating capacity in each country. The report indicates that the project is economically well justified, principally on the basis of the estimated flood control and water conservation benefits. The Federal Power Commission, through its regional office staff, has cooperated with the United States Section of the International Boundary and Water Commission in studies of the hydroelectric possibilities of the Diablo project, including the furnishing of information on power markets and power values. On the basis of the proposed method of reservoir operation, the Federal Power Commission is in agreement with the estimate of available energy at the project as shown in the report. It is also of the opinion that the 100,000 kilowatts of capacity considered in the report for possible installation in the U.S. portion of the dam is adequate to develop the power potentialities of the site. It is noted that under the plan of operation contemplated, the full capability of the Diablo plant would not be available 100 percent of the time during the 57-year study period, 1900 through 1956. However, with 100,000 kilowatts installed, a capability of at least 75,000 kilowatts would be available some 81 percent of the years, including a continuous period of 28 years; and a capability of 100,000 kilowatts would be available about 62 percent of the years. The Federal Power Commission studies show that the economic feasibility of power development at the Diablo project is dependent in large measure upon the dependable capacity that can be credited to the development. If it is assumed that the power could be utilized on the area load in such a way that 75,000 kilowatts capacity might be considered dependable, the estimates indicate that the power benefits would exceed the power costs, including an allowance for taxes foregone, with a resulting benefit-cost ratio of about 1.1. If, on the other hand, the plant could be credited with no dependable capacity, the benefitcost ratio of the power development would be substantially below unity. In view of the conjectural nature of the capacity benefits, the Federal Power Commission is of the opinion that the construction of a powerplant at this dam by the Federal Government is not warranted at this time. It believes, however, that the project possesses important power potentialities that should be safeguarded. Accordingly, the Federal Power Commission concurs in the provisions for future power development at the Diablo project substantially as shown in the subject report. Sincerely yours, JEROME K. KUYKENDALL, Chairman. |