TENTH ANNUAL REPORT OF THE PART I The completion of 10 years of service by the Federal Power Commission finds the primary business of the commission in a very satisfactory condition. During this period 1,104 applications for project authorizations have been filed, and all but 149 had been disposed of at the close of the fiscal year. Of the cases pending, nearly half were in a suspended-action status due to situations beyond the control of the commission, and the balance comprised recent applications in the process of field investigation and other administrative action preliminary to final approval or rejection. Through efforts made during the past year the docket has been practically cleared of applications for large projects contemplating early construction operations. Final action was taken in respect to 133 cases, including 89 licenses, 17 preliminary permits, and 27 denials and cancellations. The licenses granted provide in the aggregate for the immediate installation of more than a half million horsepower and a capital outlay in excess of $70,000,000. It is evident that the construction program on these projects will contribute measurably to the stimulation of industrial activities in the localities affected. Aside from the main business of investigating and disposing of applications for new developments, the incidental activities of the commission have been actively pursued. Many applications for the restoration of land from power-withdrawal status have been considered, construction operations under license have been carefully supervised, and considerable progress has been made in checking the cost accounts of completed projects. Since the first rush which occurred immediately after the passage of the act, applications have been received at a fairly constant rate, averaging about 100 a year. Many are found upon investigation to be for speculative purposes or for ill-advised projects inconsistent with public interests and thus meet with rejection. Other applicants fail in their efforts to secure the necessary sanction from State authorities, and some after being granted preliminary permits are unsuccessful in financing or arranging for markets and thus are unable to meet the requirements for securing a license. As a result of all the applications so far, there were licenses in effect at the close of the year covering 449 projects. These projects range in magnitude from unimportant transmission lines and very small plants to some of the largest hydroelectric stations in the country. They are scattered through many sections, but the geographic distribution shows a great concentration in the Western States. California alone accounts for more than a third of the 449 projects, while the three Pacific Coast States together have approximately half of the total. Less than 10 per cent of the projects are found east of the Mississippi River. This uneven distribution is due not only to the relatively abundant water-power resources in the West, but also to the nature of the Government's jurisdiction. Contrary to some popular impressions, Federal jurisdiction over water-power developments extends only to those projects which occupy Government land or affect navigable waterways and not to water power generally. Obviously, the favorable water-power sites are found where substantial fall may be utilized, and thus the developments related to the comparatively flat channels useful for navigation are few in number, though generally of large size. On account of the lack of any considerable amount of Government-owned land in the Eastern States, the Federal authority reaches only the occasional projects on the navigable streams. In the Western States, however, the land holdings embraced in the national forests, Indian reservations, and public domain are so extensive and widely spread as to give the Government at least a minority interest in most of the hydroelectric developments of that region. The distribution of the license authorizations among the States is presented by the accompanying tabulation. License authorizations outstanding June 30, 1930 NOTE. No projects are under license in the States omitted from the list. In view of the previously mentioned great variation in the magnitude of the projects under license, they are divided for the purposes of appropriate administration in two classifications. The "minor and minor-part project" group includes all those of less than 100 horsepower capacity and those, including transmission lines, where the Federal interest is small. In the "major project" classification are included those having a primary capacity in excess of 100 horsepower. Manifestly the main concern relates to the major projects. Of the 449 outstanding licenses, 107 cases are in this classification. An analysis shows that the Federal jurisdiction is due in 72 cases to Government land occupancy and in 30 cases to the works being located in navigable waters. In the other 5 cases the projects are entirely on private land along and in nonnavigable streams, but authority to license them was exercised on account of the potential capacity of the project works to affect the navigable capacity of navigable waters lower down. DEVELOPMENT PROGRESS Although the greater number of the licensed projects have been completed and placed in operation, a substantial amount of new construction is under way at the present time which will contribute a satisfactory addition to the hydroelectric facilities considering the existing conditions. The ninth annual report outlined at some length the increasing obstacles faced by new water-power developments and the events of the past year have served only to emphasize the seriousness of these difficulties. The major factor in the situation, of course, consists of the keen competition offered by fuel-generated energy. Even in the regions of abundant water-power resources the steam electric plant is assuming a position of rapidly increasing importance and demonstrating its capacity to compete on even terms with hydro power. The production statistics for 1929 show for the first time in 10 years a failure of the hydro power to record a gain in output. During the same period the energy manufactured by fuel plants increased nearly 10 billion kilowatt-hours. The following table presents the statistics of production since 1919: TABLE NO. 1.—Electric power production, public-utility systems of the United States, in kilowatt-hours Preliminary figures based on records for the first nine months of the calendar year 1930 show that, notwithstanding the current business depression, the total electric production for the year will prac tically equal the 1929 output, but the proportion generated from water power promises to be even less than in 1929. This recession in the share of the market served by hydro power is due partly to the widespread and repeated droughts and partly to the trend toward wider adoption of fuel-using facilities. The notable projects which have been brought to practical completion during the year include the Diablo development built by the city of Seattle on Skagit River in Washington and the equally impressive project of the East Bay municipal utility district on the Mokelumne River in California. Both projects involved the construction of great concrete dams nearly 400 feet high. Two other licensed projects virtually completed at the end of the year comprised public utility company plants in the southeast region. The Waterville development of the Carolina Light & Power Co. on Big Pigeon River in North Carolina, with its static head of 861 feet, its long high-pressure tunnel, and installation of 150,000 horsepower, one of the outstanding stations in the East. The Saluda project of the Lexington Water Power Co. in South Carolina is also noteworthy because of the immense reservoir of about 2,500,000 acre-feet capscity created by an earth-fill dam containing 11,000,000 cubic yards of material. The stored water from the reservoir will serve the power plant of 160,000 horsepower capacity soon to be in operation. Work is still continuing actively on the Salt Springs project of the Pacific Gas & Electric Co. in California. This project is particularly notable for its rock-fill dam of unparalled dimensions. The most important of the new projects licensed and placed under construction during the year are the Bagnell Dam on the Osage River in Missouri; the Safe Harbor Dam on the Susquehanna River in Pennsylvania; the Rock Island Dam on the Columbia River near Wenatchee, Wash; the Ariel Dam on Lewis River, also in Washington; and the Flathead Lake project in Montana. Each of these projects includes unusual features and is requiring large outlays for labor and materials. The last three projects mentioned are all within the Columbia River Basin. This mighty river with its immense discharge and comparatively steep descent to the ocean furnishes one of the country's premier water-power possibilities. To the Northwest the start now being made toward harnessing the vast latent resources of the Columbia is of much importance. The dam being constructed at Rock Island is the first of the great structures which will be needed for the control of the river and many difficult problems were presented for solution. After months of expert study and negotiation, the provi sions of the license for safeguarding the interests of the upper basin States, the highly important fishing interests, and the navigation possibilities were formulated to meet the views of the various agencies concerned. The United States Bureau of Fisheries rendered valuable aid in working out the measures necessary to protect the notable Columbia River Salmon run. In guiding the course of developments on the Columbia, the commission is proceeding carefully with a view of assuring the elimination of haphazard projects inconsistent with a comprehensive plan which will accomplish the maximum utilization for irrigation, power, and other beneficial purposes. Two applications for large projects on the main stream unable to meet the requirements were denied during the year. The total capacity of all the licensed plants which have been completed and placed in service now amounts to 2,608,868 horsepower. As may be observed from accompanying Table No. 2, this capacity is equivalent to about 24 per cent of all the hydro capacity and slightly less than 6 per cent of the total generating capacity in public utility service throughout the country. It is of interest to note that about 80 per cent of all the capacity operating under Federal Power Commission license is confined to four States-Alabama, California, Maryland, and New York. The Maryland apportionment is accounted for entirely by the single plant at Conowingo, while in the case of New York all but 8,100 horsepower consists of the installation at the Niagara Falls station. The installations in a dozen States comprise 97 per cent of the total and in 27 States there are no plants whatever operating under the authorization of the act. It is apparent from these figures that the effect of the legislation so far has been of somewhat sectional rather than broad national significance. Table No. 2.—Total electric generating capacity of the United States in relation to capacity operating under Federal Power Commission license Adapted from U. S. Geological Survey statistical data as of Jan. 1, 1930. 1 As of June 30, 1930, not including minor and minor-part licenses. |