Memorandum on Marketing Glen Canyon Power in the Lower Basin

Memorandum: From W.T. Willey, to E.G. Nielsen, "Marketing Glen Canyon power in the Lower Basin," 1961, page 2the primary needs of Arizona, granted a third priority of preference to applicants other than districts for power supplies to be used primarily for irrigation and drainage. A reading of Section 30-125 A.R.S. makes it quite clear that our Legislature determined that the greatest public good from the distribution of low cost hydroelectric power could be achieved by granting preferences to both organized and unorganized farmers. A controversy may arise between the Bureau of Reclamation and the APA concerning the marketing of power and energy from the Upper Colorado River Project in Arizona. The Bureau may take the position that the APA does not qualify as a preference user under federal preference laws. It supports this position on the grounds that the APA, following state law, sells power and energy to Arizona Public Service Company for ultimate sale to farmers who are not organized into districts. In effect, the Bureau of Reclamation is telling the farmer of Arizona that he is not entitled to Colorado River power unless he forms an electrical district; further the Bureau of Reclamation is telling the State of Arizona that it is not competent to determine its own public policy, and if it persists in its present policy of distributing low cost power to unorganized farmers the Bureau will refuse to deal with the State of Arizona through the APA. A review of the federal laws pertaining to preference sales by the United States will not sustain this position. The Reclamation Project Act of 1939, 43 U.S.C.A. 485 (h) provides a preference as follows: ". . . that in said sales or lease preferences shall be given to municipalities and other public corporations or agencies; and also to cooperatives and other nonprofit organizations financed in whole . . .". Title 16 U.S.C.A. 83 (b) defines public bodies as follows: "Public bodies means States, public power districts, counties and municipalities including agencies -2-Epson Perfection 4870 Photo, 400 dpi, 8 bit, 3,847,015 byte