Memorandum of Arizona Public Service Company with Respect to the Central Arizona Porject and the Related Matter of Power

Document: Memorandum of Arizona Public Service Company With Respect to Water and Hydro Electric Power Development in Arizona, November 14, 1962, page 2that all of the power from the Colorado River will be delivered to them. Public power and cooperative distributors have been assured of all of the available power from Glen Canyon Dam with not one single kilowatt allocated to the customers of the private taxpaying utilities in the state. The Bureau of Reclamation has recently notified Arizona Public Service Company that all power which it has been receiving from Parker Dam for some 20 years will be terminated, all of which power will be distributed by the Bureau of Reclamation to public non-taxpaying groups or cooperatives. Similarly, the Bureau of Reclamation has recently cancelled its sale of Davis power to the Arizona Power Authority and is attempting to sell it direct to selected former customers of the Authority. It further appears that a determined effort is now being made to change the agreed upon plan for the construction of Marble Canyon Dam and power plant by the State of Arizona and instead place this in the hands of the Bureau of Reclamation along with the Bridge Canyon facilities. The parties active in this respect know full well that under such a program Arizona Public Service and other taxpaying utilities will receive no power from either Marble or Bridge. The Central Arizona Project is now being used by Federal power advocates to aid and support the Bureau of Reclamation in the future federal encroachment and socialization of the power business in the State of Arizona. In other words, the cry for water for Arizona is being used as a camouflage for the public power group to get all of the tax-free power which will be developed from the over-all project. 6. While we believe water is important to the future growth of Arizona, we also believe the preservation and protection of private enterprise in the state is equally important and, even more important, is the fair and equitable treatment of all of its citizens. 7. We further believe that it is essential that all interests of the state attempt to combine their efforts to bring about the development and completion of the Central Arizona Project. This can only be accomplished provided all parties recognize the rights and equities of the other fellow. Said otherwise, we believe the public power distributors of this state should stop attempting to have all of the power generated on the Colorado River allocated to them and instead offer to share it fairly with the taxpaying distributors serving the citizens of this state. Up to this time every effort and every proposal made by the taxpaying utilities for a solution of the vexing problem involving the preferential and discriminatory provisions of the state and federal laws has been totally and completely rejected. The needs of the customers of the taxpaying utilities for additional power at as low a cost as is possible is just as great and just as urgent as that of any of the public power distributors. - 2 -Epson Perfection 4870 Photo, 400 dpi, 8 bit, 2,092,668 byte