COMMITTEE ON PUBLIC WORKS DENNIS CHAVEZ, New Mexico, Chairman ROBERT S. KERR, Oklahoma EDWARD MARTIN, Pennsylvania CHAPMAN REVERCOMB, West Virginia SUBCOMMITTEE ON FLOOD CONTROL-RIVERS AND HARBORS ALBERT GORE, Tennessee II FRANCIS CASE, South Dakota ROMAN L. HRUSKA, Nebraska CHAPMAN REVERCOMB, West Virginia Statement of- CONTENTS Blair, F. R., president, Claverack Electric Cooperative, Inc.. Edelman, John W., Textile Workers Union of America, AFL-CIO__ Foscue, A. L., Electro Metallurgical Co., Union Carbide & Carbon 331 279 233 Gatchell, Willard, General Counsel, Federal Power Commission.. Ginna, Robert E., president, Rochester Cas & Electric Corp--- Lefkowitz, Hon. Louis J., attorney general of New York. Lindy, Edward F., president, Central Electric Cooperative, Inc... Luse, Powers, manager, Hancock-Wood Electric Cooperative, Inc. Machold, Earl J., president, Niagara-Mohawk Power Corp. -- MacCregor, Robert, vice president, New York State Association McKinley, William C., manager, Central Electric Cooperative_ McMahon, Andrew J., president, Local 1-2, Utility Workers Union of Martin, Lauman, vice president and general counsel, Niagara-Mohawk 268 Miller, Hon. William E, Member of Congress from New York. Moore, Thomas F., general counsel, New York Power Authority. Moses, Robert, chairman, New York Power Authority- Murray, Lindley, chairman, Basic Industries Power Committee_ Olds, Leland, Director, Energy Research Associates Radin, Alex, general manager, American Public Power Association... Robinson, Charles A., Jr., staff engineer, National Rural Electric Co- Rosenman, Samuel I., legal consultant to New York Power Authority. Stockton, Blaine, president, New York State Association of Rural Amendments suggested by the International Paper Co- Exhibits, letters, etc.: Biemiller, Andrew J., director, legislative department, AFL-CIO. Busch, Harvey M., chairman, Industrial Power Consumers Con- ference 75 Exhibits, letters, etc.-Continued Doty, Dale E., Commissioner, Federal Power Commission__. Ellis, Clyde T., general manager, National Rural Electric Cooperative Estimated 1955 power requirements.. Evans, Miller, Acting Director of Operations and Maintenance, Ginna, Robert E., president, Tochester Gas & Electric Corp- Kellett, W. R., executive vice president Kimberly-Clark Corp. Leader, Hon. George M., Governor of Pennsylvania. Lehman, Hon. Herbert H., former Senator from New York Luse, Powers, executive secretary, Pennsylvania-Ohio-New York Merriam, Hon. Robert E., Assistant Director, Bureau of the Budget_ Miles, Clarence R., United States Chamber of Commerce_ Mills, William A., executive vice president, Empire State Chamber of DEVELOPMENT OF POWER AT NIAGARA FALLS, N. Y. WEDNESDAY, APRIL 10, 1957 UNITED STATES SENATE, RIVERS AND HARBORS, Washington, D. C. The subcommittee met, pursuant to notice, at 10:07 a. m., in room 412, Senate Office Building, Hon. Robert S. Kerr, presiding. Present: Senators Kerr (chairman of the subcommittee), Gore, Neuberger, Scott, Carroll, Case, Kuchel, Cotton, and Hruska. Also present: Senators Clark (Pennsylvania), Ives (New York), Javits (New York), and Congressman Miller (New York). Senator KERR. The committee will be in order. We have before us S. 512 and S. 1037, bills to authorize the construction of certain works of improvement in the Niagara River for power and other purposes. (S. 512 and S. 1037 follow :) [S. 512, 85th Cong., 1st sess.] A BILL To authorize the construction of certain works of improvement in the Niagara River for power and other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That pursuant to the provisions of the reservation of the Senate of the United States in giving its advice and consent to the ratification of the treaty between the United States of America and Canada concerning uses of the waters of the Niagara River signed February 27, 1950, which provides that no project for redevelopment of the United States share of such waters shall be undertaken until it be specifically authorized by Act of Congress, a project for the redevelopment of the United States share of such waters for power purposes is hereby authorized, in accordance with existing general laws of the United States and this Act. This authorization constitutes compliance with the reservation to said treaty and is consistent therewith. SEC. 2. (a) The Federal Power Commission is hereby authorized and directed to issue a license to the New York Power Authority for the construction and operation of the project, upon its application therefor and its acceptance of licensing conditions set forth in this section. (b) The Federal Power Commission shall include among the licensing conditions, in addition to those deemed necessary and required under the terms of the Federal Power Act, the following: (1) In contracting for the disposition of project power, the licensee (the New York Power Authority) shall (A) give equal preference for the purchase of such power to (i) counties and municipalities, including their agencies or instrumentalities, (ii) departments, agencies, and instrumentalities of New York State, (iii) rural electric cooperatives not organized or administered for profit but primarily for the purpose of supplying electric energy to their members as nearly as possible at cost; and (iv) the defense agencies of the United States, and (B) make flexible arrangements and contracts for the disposition of project power to utility companies organized and administered for profit, with suitable provisions in such contracts for the withdrawal upon reasonable notice and fair terms of enough power to meet the needs of the foregoing classes of preference customers. 1 (2) The licensee shall, if available on reasonable terms and conditions, acquire by purchase or other agreement, the ownership or use of, or if unable to do so, construct such transmission lines as may be necessary to make the power and energy generated at the project available in wholesale quantities for sale on fair and reasonable terms and conditions to privately owned companies, to the preference customers enumerated in subparagraph (1) (A) of this subsection, and to the neighboring States in accordance with paragraph (3) of this subsection. (3) The licensee shall make a reasonable portion of the project power available for use within economic transmission distance in neighboring States and shall cooperate with the appropriate agencies in such States to insure compliance with this requirement. In the event of disagreement between the licensee and the power-marketing agencies of any of such States, the Federal Power Commission may, after public hearings, determine and fix the applicable portion of power to be made available and the terms applicable thereto: Provided, That if any such State shall have designated a bargaining agency for the procurement of such power on behalf of such State, the licensee shall deal only with such agency in that State. With respect to the share of the power so allocated, the arrangements made by the licensee for the sale of power to or in such States shall include observance of the preferences numbered (i) and (iii) in subparagraph (1) (A) of this subsection. (4) Project power shall be sold and distributed primarily for the benefit of the people as consumers, and particularly for the benefit of domestic and rural consumers, to whom it shall be made available at the lowest rates reasonably possible and in such manner as to encourage the widest possible use. (5) In the event project power is sold to any purchaser for resale, contracts for such sale shall include adequate provisions for establishing resale rates, to be approved by the licensee, consistent with paragraph (4) of this subsection. (6) The licensee, in cooperation with the appropriate agency of the State of New York which is concerned with the development of parks in such State, shall construct a scenic drive and park on the American side of the Niagara River, near the Niagara Falls, pursuant to a plan, the general outlines of which shall be approved by the Federal Power Commission; and the cost of such drive and park shall be considered a part of the cost of the power project and part of the licensee's net investment in said project: Provided, That the maximum part of the cost of such drive and park to be borne by the power project and to be considered a part of the licensee's net investment shall be $15,000,000. (7) The licensee shall pay to the United States and include in its net investment in the project herein authorized the United States share of the cost of the construction of the remedial works, including engineering and economic investigations, undertaken in accordance with article II of the treaty referred to in the first section of this Act whenever such remedial works are constructed by the United States. SEC. 3. The license issued under the terms of this Act shall be granted in conformance with Rules of Practice and Procedure of the Federal Power Commission, but in the event of any conflict, the provisions of this Act shall govern in respect of the project herein authorized. SEC. 4. This Act may be cited as the "Niagara Redevelopment Act of 1957". [S. 1037, 85th Cong., 1st sess.] A BILL To authorize the construction of certain works of improvement in the Niagara River for power and other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CONGRESSIONAL FINDINGS SECTION 1. The Congress hereby finds and declares (a) that an emergency exists in the western part of the State of New York as a result of a rock slide which on June 7, 1956, destroyed most of the facilities employed by the licensee of Federal Power Commission project 16 for the generation of power by the use of waters of the Niagara River; (b) that the power generated at such facilities was largely used by electrochemical and electrometallurgical industries vital to the defense of the United States and employing a large proportion of all workers resident in the vicinity; |