S. 3136 adds nothing to the Federal Power Act beyond the opportunity to immunize electric utilities from possible antitrust prosecution, based on the belief that such action may encourage desirable interconnection and power pooling. In recent years these activities by utilities have been greatly accelerated. The Legal Advisory Committee pointed out that there are "no insuperable legal barriers to pooling" and that "generally one means or another can be found to implement a particular pooling arrangement which two or more systems desire." The main thrust in recent years in the area of inter-connection and pooling has been to improve and strengthen technical and administrative arrangements-a goal which was substantially enhanced by the experience of the Northeast blackout of November 9, 1965. Because of this fact, S.3136 might well be amended to better achieve its aims by incorporating an affirmative responsibility on the part of the FPC to insure that extra-high voltage interstate transmission lines-a key to inter-connection and power pooling are planed, built, and operated in a fashion which will most benefit the public interest.

CONTROL OF TRANSMISSION SIGNIFICANT

APPA has endorsed enactment of S.2140, introduced by Senator Magnuson. This bill, which will be the subject of hearings later this month, would require, among other things, that plans for jurisdictional transmission facilities be "consistent with a comprehensive plan for the use and development of the power resource in the area for the purpose of making electric energy reliably available in ample amounts, on fair and reasonable terms, and includes therein to the extent financially feasible sufficient capacity to meet all needs within the affected area for transmission capacity, whether from public or private generation, including reasonable capacity for expansion to meet future loads."

Both the Legal Advisory Committee and the Bureau of the Budget have suggested further detailed study of the concepts contained in S. 3136. APPA has initiated a specific study of this bill. Among the additional ideas which have been suggested for study by the APPA task force in carrying out its assignment: 1. An express provision granting access to power pools by all applicants on a non-discriminatory basis in accordance with an FPC assessment of economic benefits which would accrue to the parties, with the burden of proof placed on present pool participants to show injury by inclusion of the additional utility.

2. Automatic five-year review of all pooling contracts by FPC to insure that the contracts continue to best serve the public interest.

3. Explicit provision for adequate notice to affected parties and the public preceding FPC approval or disapproval of contracts.

The Legal Advisory Committee suggested the possibility of "some selective and carefully hedged basis for exemption from antitrust statutes." Before our Association can take a position on this bill, the special subcommittee of our Legislative and Resolution Committee undoubtedly will make studies to determine whether or not the approach of S. 3136 is sufficiently "selective" and "careful." As Senator Magnuson stated in introducing S. 3136 by request: "What the Bill does now is to bring this important question into the public forum. The debate may show that a bill is needed. It may show that this particular bill needs modification. It may show that no legislation is needed.”

• Represents a single unit. More typically, maximum prevailing sizes were 75 mw in 1930, 100 mw in 1940, and 175 mw in 1950

Under construction

Number of U.S.1 electric utility systems by size, geographic distribution, and ownership as of Dec. 31, 1962

2 Principal systems are defined as class I systems with net energy for system of more than 100,000,000 kilowatt-hours per year, and class IV systems with either net energy for system or net energy for load or net generation of more than 100,000,000 kilowatt-hours per year. All other systems are listed in the small electric utility system group.

Number and size of small electric utility systems in the United States 1

Because of airline strike representatives of Grant County PUD will not attend Senate hearing on S. 3136. We are supporting passage of S. 3136 as being in the best interests of full utilization of Nation's electrical resources. Gordon Culp will present statement on behalf of this district.

R. W. GILLETTE,

Manager, Public Utility District of Grant County.