rates and a means of keeping the Congress advised on the current status of the matters involved. The plan would involve the installation, operation and maintenance, and replacement by the War Department of power generating facilities at projects constructed by it, and the marketing by the Department of the Interior of power not required for operation of these projects, as provided by the Flood Control Act of 1944. To maintain an appropriate balance between power installations and requirements, however, and to permit the effective discharge of obligations as marketing agent, you should be authorized to designate the timing and extent of power installations made, under authorizations and appropriations of the Congress, and to determine the power allocations at all plants in the Columbia River Basin from which power will be marketed by the Department. Extension of the basin repayment plan to include existing projects noted above would result in an increase both of construction costs charged to the account and of revenues credited to it. Adding the reimbursable investment. in the existing projects to that estimated for all potential developments, the total reimbursable cost becomes about $5,043,000,000. Within a repayment period subsequently recommended water users would repay approximately $386,000,000. The balance of $4,657,000,000, consisting principally of the ultimate investment in power but. including also those construction costs for irrigation which would be assigned for return from power revenues, would be charged to the single special account. Credited to the account would be power revenues estimated at about $5,251,000,000. The prospective surplus of credits to the account over charges against it thus is approximately $594,000,000 (table 2). This does not take into consideration the indeterminate charges which, under conditions specified above, might be made against the account in the interest of existing irrigation projects, but the comparatively small total of such charges could in no event be expected to reduce the indicated surplus below $560,000,000. Much the greater part of that surplus would be accumulated through revenues from projects included under the initial operation of the repayment plan. These projects, indicated above, would have reimbursable construction costs estimated at approximately $1,994,000,000. Of this total, water users would repay $141,000,000, and $1,853,000,000, representing the power investment and irrigation construction costs assigned for repayment by power revenues, would be charged to the account. Power revenues creditable to the account from projects covered under the initial operation of the repayment plan would total approximately $2,368,000,000. This credit would exceed the charges of $1,853,000,000 by $515,000.000. Moreover, these surpluses of potential revenues over reimbursable costs, both for the ultimate development and for that to which the basin repayment plan would be made initially applicable, represent conservative estimates for a number of reasons. (1) Allocations of construction costs to nonreimbursable purposes are incomplete. No allocations to recreation, silt control, and fish conservation are included, and the allocation for pollution abatement is based only on benefits of War Department projects now authorized. Increase in the nonreimbursable allocations will serve to decrease the reimbursable costs indicated above. (2) Although, in accordance with a subsequent recommendation, the estimated receipts from water users are based on annual payments over a 50-year period in place of the 40-year period prescribed by the present Federal reclamation laws, the annual charges assumed to be made against water users are conservatively based on prewar experience. (3) Power revenues are predicated on average rates of 2.7 mills per kilowatt-hour for firm energy and 1.0 mill for secondary energy, and on the customary payment period of 50 years, except in the case of the Bonneville and Grand Coulee projects where a 75-year period has been adopted. By extending the 50-year period in other instances the revenues available for payment of reimbursable costs would be substantially increased. Net power revenues of somewhat more than $88,000,000 annually would be available long after the end of the 50-year period assumed in calculations of revenues noted above. (4) Furthermore, additional revenues would be received for energy actually produced at potential developments but not included in the estimates of revenues presented above. For purposes of the report, that energy has been considered as replacement for an equivalent amount which would be displaced in the course of the comprehensive development. Although not evaluated, that replacement energy would yield a substantial income. PROJECTS AUTHORIZED The comprehensive development as a whole is sub-divided into two principal stages. The initial stage consists of projects already authorized for construction by the Bureau of Reclamation, Office of Indian Affairs, and War Department. To the 44 projects in this stage which are itemized in paragraph 113 of the Regional Director's report, three others have recently been added. One is the Lewiston Orchards project, Idaho, authorized for construction by the Bureau of Reclamation. The others are the Foster Creek project, Washington, and the Lucky Peak project, Idaho, authorized for construction by the War Department. These 47 projects will entail the irrigation of 1,313,620 acres of new land ; the provision of supplemental water to 1,077,980 acres now inadequately supplied; material improvement
