consistent with their proper development and utilization”—and will also serve the national defense and provide for postemergency needs. It has been quite evident that the West was facing a shortage of power which could not be met by the enlarged program of the Bureau of Reclamation as authorized in the winter of 1940-41, even with the speed-up of the Grand Coulee and Bonneville Dam schedules. Attention is directed to the fact that one large utility on the Pacific coast, which had deprecated the idea that it could not supply the demand for power, frankly admitted in May of this year that it had had to revise its figures upward to meet new Federal forecasts, demonstrated to be more nearly accurate. In giving you examples of the rapidly changing picture with respect to power deficiencies in the West I should explain, perhaps, that for the purposes of this study the lower Arkansas Valley as well as Oklahoma and all of Texas are included. The Bureau of Reclamation is conducting basin-wide investigations in these States in cooperation with other agencies. Consequently, in presenting the power situation west of the Mississippi as a whole, these States are included. Much of this territory west of the Mississippi, which occupies nearly half of the land area of continental United States, is heavily mineralized. Present estimates of additional dependable capacity desirable based on a $36,000,000,000 annual expenditure for national-defense show, for the region west of the Mississippi, an increase in deficits of 100 percent by 1945 over the estimates we previously had made. These estimates of additional dependable capacity desirable by years are as follows: 1943, 902,000 kilowatts; 1945, 2.018,000 kilowatts; 1946, 2,455,000 kilo watts. For the Pacific Northwest alone the studies of the Bonneville Power Administration, which distributed Grand Coulee power, indicate a deficit in installed capacity, after presently planned installations at Grand Coulee and Bonneville are made, by years as follows: 1943, 512,000 kilowatts; 1945, 901,000 kilowatts; 1947, 1,200,000 kilowatts. Including all of Oregon, Idaho, and Montana, the Bonneville Administration reports indicate deficits for years as follows: 1943, 934,000 kilowatts; 1945, 1,384,000 kilowatts; 1947, 1,754,000 kilowatts. Senator O'MAHONEY. What is the basis of those estimates? Mr. BASHORE. That is on the basis of contracts, either actual or prospective. Senator O'MAHONEY. Do you mean defense contracts? Mr. BASHORE. Yes, sir. Senator O'MAHONEY. In the preparation of these estimates and this program, has any consideration been given to the utilization of the power after defense contracts are no longer being met? Mr. BASHORE. Well, of course, there will be a large use of the power in pumping for the 1,200,000 acres in the Columbia Basin project, and also there will undoubtedly be a natural growth in that community. It seems likely that there will be some slump at the end of the emergency. Of course, it is difficult to predict when that will occur, also. Senator O'MAHONEY. But these figures are based almost completely on defense needs? Mr. BASHORE. Yes. Mr. KRUG. Mr. Chairman, I think perhaps if not valuable for this record it would be helpful to the O. P. M. if we could have the supporting detail upon these estimates of shortages by areas classified by potential or existing contracts. I must say that in the past 4 weeks I have tried diligently to reconcile all the estimates of power requirements that have been made, and it is very hard to do that without having comprehensive information on the estimates of power requirements and planned power proposals. Senator O'MAHONEY. I am sure that the Department will be willing to cooperate with you. Mr. BASHORE. We will be glad to do that. (The matter referred to is as follows:) I present for the record a tabulation of the capacity of hydroelectric installations existing and scheduled by the Bureau of Reclamation and the Bonneville Power Administration, both under the Department of the Interior, by the close of 1946. The Bureau of Reclamation now has in operation 28 plants, with installed capacities totaling 953,962 kilowatts on 17 projects of the Bureau in 11 States. At the end of each year the capacity will total as follows: 1941. 1942 1943_ Kilowatts 1, 364, 962 1944_. Kilowatts 2, 621, 062 2,676, 062 2,836, 062 The entire capacity of Bonneville, totaling 518,400 kilowatts, will be installed by the end of 1943. This will bring the total installed capacity, including Indian Office plants, under the Department of the Interior, to 3,337,462 kilowatts. The installed capacities of operating plants and the schedules of installations by the Bureau of Reclamation and the Bonneville Power Administration are as follows: Senator O'MAHONEY. May I interrupt you there to say that with a view to developing possible uses for power thus developed, the committee has invited the Rural Electrification Administration to participate in this hearing. Administrator Slattery is unable to be with us this morning, but he will appear later in the week. The record of R. E. A. has demonstrated that a very much larger amount of power than is now available can be utilized in rural communities through the development of cooperatives, which have been so successful under the Rural Electrification Administration. Perhaps it is proper to say that Administrator Slattery is represented here this morning by Miss McKinney, and she is invited to participate if she cares to. Proceed, Mr. Bashore. Mr. BASHORE. I submit the table for the record. Senator O'MAHONEY. May I ask, first, whether that entire capacity of Bonneville, 518,400 kilowatts, includes the new units of which Mr. Krug was speaking? Mr. BASHORE. It includes the entire installation. Mr. KRUG. It does include them; yes, sir. Senator O'MAHONEY. The tables may be published without your reading them. (The tables referred to are as follows:) BONNEVILLE DAM PROJECT SCHEDULE (BONNEVILLE POWER ADMINISTRATION, DEPARTMENT OF THE INTERIOR) 3,354, 462 Grand total, Bureau of Reclamation and Bonneville Power 1 1 The Office of Indian Affairs operates power plants on Indian projects, of which the San Carlos in Arizona with 13,000 kilowatts of hydro and 4,800 Diesel are the largest. The others are small and serve no commercial purposes. ESTIMATED POWER DEFICIENCIES Mr. BASHORE. The rapidly changing picture with respect to power demands in the West, as I have indicated, has led to a series of sharp upward revisions of estimates of the needs for new installations. It has been exceedingly difficult to make forecasts of demands which stand up for as long as a month. No sooner is an estimate made than some new element is injected to force its revision. In the last week we have revised our estimates, made a month ago, again upward. This was made necessary by new figures related to a $36,000,000,000 per annum defense effort. We are aware, however, of an impending revision already. Active negotiations are in progress looking to a contract calling for 196,000 additional kilowatts of power from Boulder Dam for a magnesium plant. High-grade magnesite from beds in the north central section of Nevada are proposed for use. Responsible agencies studying the power markets and demands have provided estimates of potential deficiencies in power in western areas, as follows: Pacific Northwest: In addition to present capacity and all that which is now scheduled for installation, a deficiency of 900,000 kilowatts by 1945 and 1,200,000 by 1947. Southern Oregon: By 1945 a deficiency of 60,000 kilowatts. Northern California and northern or western Nevada: Even after completion of the Central Valley project and the 150,000-kilowatt steam plant planned in connection with it, as well as other scheduled installations, a deficiency of 183,000 kilowatts will develop by 1945 and of 337,000 kilowatts by 1947. Senator O'MAHONEY. May I interrupt you again, Mr. Bashore, to ask you what was the source of the coal supply planned for this California steam plant? Mr. BASHORE. That would not be a coal plant; that would be an oil-burning plant. Senator O'MAHONEY. Then, for that you would use California oil? Mr. BASHORE. Yes. Pacific southwest, including southern California, Arizona, and southeastern Nevada: After all scheduled installations at Boulder, Parker, and Davis-Bullshead-Dams on the Colorado River, and other scheduled installations, deficiencies of 250,000 kilowatts by 1945 and 375,000 kilowatts by 1947 are expected. Utah-Idaho: Deficiencies of 75,000 to 125,000 kilowatts by 1945 and from 150,000 to 200,000 by 1947. Colorado-Wyoming-western Nebraska: Deficiencies of 50,000 to 75.000 kilowatts by 1945 and 75,000 to 125,000 by 1947. Montana Definite figures are unavailable, but shortages are apparently imminent. Arkansas-Oklahoma-Kansas-southern Missouri: Deficiencies, in part, due to recent allocations of 240,000 kilowatts for aluminum production, of 417,000 kilowatts by 1945 and 516,000 by 1947 are expected. Mr. KRUG. Pardon me, Commissioner, but I wonder if I may ask where those 240,000 kilowatts for aluminum production come from. Mr. LINEWEAVER. I think that that was in an O. P. M. release of June 27. Mr. KRUG. To the best of my knowledge, there is one of 120,000 kilowatts. Mr. LINEWEAVER. And another one in prospect. Mr. OLDS. These figures are largely, almost entirely, based on our predictions, and I think that they have been somewhat misunderstood. For instance, those 196,000 additional kilowatts of power from Boulder Dam for magnesium are in the estimates that are used on page 5 of the presentation. However, I can comment on that somewhat more at length later. Mr. BASHORE. Texas-New Mexico: Deficiencies of 212.000 kilowatts by 1945 and 295,000 by 1947 are in prospect. North Dakota-South Dakota: Although indications are that the defense demands will be relatively small, increasing deficits are anticipated ranging from 25,000 kilowatts in 1945 to 50,000 in 1947. The crises which these estimated deficiencies would represent, if they were permitted to develop, can be averted, of course, by the construction of new projects to provide the desired power and by the installation of additional machinery, as at Boulder and Grand Coulee |