Imágenes de páginas
PDF
EPUB

pare, but, as will be noted in the subsequent sections of this justification, all normal programs of the Authority have been drastically changed to meet the needs of the present emergency.

For example, under the navigation, flood-control, and power program the schedules for the completion of both the Kentucky and Fort Loudoun projects have been moved forward by a year to assure increased power supply for defense industries, and the scope of the Fort Loudoun project is to be extended, if the 1943 estimate is approved, to include a diversion dam on the Little Tennessee River, thereby increasing by 18,000 kilowatts the continuous power available from that project. The estimates for these two projects alone, as revised to meet defense schedules, account for $48,951,000 of the total of $53,645,000 assigned to the so-called normal program.

Under the fertilizer program the Authority is adding to its prosphorus-producing capacity at Muscle Shoals and proposes in the 1943 estimate that $3,000,000 be provided to start construction of a new $4,800,000 phosphorus-producing plant at or near Mobile, Ala. This expansion in phosphorus-producing capacity is made necessary by the present emergency since a large proportion of all existing capacity in the country is needed for direct military purposes and the balance is badly needed for the food programs of the United States and its allies.

The development-activities program has ben substantially revised to meet emergency needs. The major revision has been to step up research efforts on the discovery of new processes for the production of vital defense materials. The Authority recently submitted to the Office of Production Management a complete report of a new process for the production of alumina from clay as a result of research carried on over the past 5 years; in 1943 the major effort will be to perfect a process for the production of magnesium from olivine, of which there are large deposits in the Southeast. Other emergency activities under this program include assistance to the defense-housing and defense-contract services.

The emergency expansion of the Authority's programs has created a serious need for service facilities and equipment at its major permanent work centers. A critical situation exists in the Muscle Shoals area where service roads and railroads, office, laboratory, warehouse, and repair-shop space is woefully inadequate, and a river terminal, used primarily by the Authority's operations, requires major improvements. On the basis of a survey recently completed, the Authority hopes to initiate in the fiscal year 1942 a 3- or 4-year program to adjust this situation and to meet smaller service-facility needs in other areas. Estimates of $2,150,000 and $2,160,000 have been included for this purpose in the fiscal years 1942 and 1943, respectively.

In addition to the programs shown on table 1 and in the supporting tables and statements submitted herewith, which support the 1943 appropriation requests, the Authority is also engaged in modernizing the ammonium nitrate plant at Muscle Shoals for the account of the War Department and has completed the construction of and is managing 250 defense houses in the Muscle Shoals area for the Federal Works Administrator.

The estimates by programs summarized in table 1 are described in some detail in the following sections of this justification. It will be noted that the net cash income from power operations in 1943 is sufficient to finance all the program operations and development activities of the Authority and to leave a margin of $14,959,000 for new construction. This margin exceeds the estimate for 1942 by $9,633,000 and the actual for 1941 by $8,342,000. This large increase is primarily explained by the heavy defense power loads to be carried by the Authority in 1943.

TABLE 1.--Tennessee Valley Authority-Budget summary

Actual to
June 30,

1940

Actual, fiscal

year, 1941

Estimated,
fiscal year,

1942

Estimated, fiscal year,

1943

$332, 075, 452
-11, 766, 042

$77, 270, 517
-10, 774, 860

Programs to be financed:
Navigation, flood control, and power:

Asset accounts

Income and expense accounts, net. Fertilizer:

Asset accounts

Income and expense accounts, net Related property operations: Income and

expense accounts, net
Related development activities: Income
and expense accounts, net.

7, 282, 568
9,979, 984

986, 614
1,990, 473

$168, 622,000
-10, 162, 000

2, 084.000
2,343,000

756, 000

$143, 598,000 -19, 892,000

4,986,000 2, 440,000

756, 000 1,737,000

3,996, 951

768, 538

9, 142, 453

1, 398, 447

1,737, 000

TABLE 1.—Tennessee Valley Authority-Budget summary—Continued

[graphic][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][merged small][merged small]

Table 2 presents the actual and estimated costs under the asset accounts for the navigation, flood control, and power program. The total requested for 1943 is $143,598,000 which is $25,024,000 less than the estimated amount for 1942. The total reflects requirements for carrying out this program as modified by three supplementary power programs to provide additional power-producing facilities for emergency national defense purposes. The estimates include funds for continuing construction of the Fontana, South Holston, and Watauga Dams, additions to the Watts Bar steam plant, now under construction, and to the existing steam plant near Sheffield, Ala., and 10 hydroelectric generating units at existing projects or projects now under construction, as approved by Congress on December 15, 1941, for beginning of construction in 1942, and for continuation of projects previously authorized. The estimated expenditures for 1942 include $107,283,000 for carrying out the three supplementary power programs and the estimates for 1943 include $82,455,000 for this purpose.

TABLE 2.- Navigation, flood control, and power program, aiset accounts

Major unified system projects

Actual to
June 30,

1940

Actual fiscal year

1941

Estimated Estimated
fiscal year

fiscal year
1942

1943

Estimated

cost to complete

Total estimated

cost

Kentucky Dam and Reservoir..

$18, 203, 960 $13, 427, 555 $21, 226,000 $31, 878,000 $20, 264, 485 $105,000,000 Pickwick Landing Dam and Reservoir

30, 502, 408 3, 466, 437 1, 660, 000 Wilson Dam and Reservoir

1, 591, 000 911,000 30, 517, 539

38, 130, 845 2, 971, 280 5, 155, 000 Wheeler Dam and Reservoir

2, 237,000 814, 000 34, 197, 152

41,69 1, 819 1,041, 695 Guntersville Dam and Reser

1,602,000 1, 767, 000 457,000 39, 064, 847 voir

31, 326, 669 Hales Bar Dam and Reservoir

106, 071 310,000

1, 426,000 906, 000 34, 074, 740 additions.

115,816 1,012, 911 1, 201, 000 Chickamauga Dam and Res

2, 128, 000 1,542, 273 6,000,000 ervoir

33, 390, 422 368, 613 Watts Bar Dam and Reser

693, 000
2, 295, 000

903, 000 37, 650, 035 voir

8, 973, 108 14,832, 444 Fort Loudoun Dam and Re

8, 496,000 2, 735, 000 863, 448 35, 900,000 servoir

768, 594 3,675, 224 Hiwassee projects.

19, 464, 000 17,073, 000 16, 051, 556 - 147, 285 32, 974, 000

3,019, 182 44,000,000

6,776,000 Norris Dam and Reservoir

331, 000
30, 785, 347
--532

55, 985, 271
63, 000
8,000

30, 855, 815

(

TABLE 2.-Navigation, flood control, and power program, asset accountsContinued

[graphic]

Cherokee Dam and Reservoir

$20,781, 921 $9, 476,000 $1, 242, 079 Fontana Dam and Reservoir..

$31, 500,000

12,094, 000 23,471,000 $12, 435,000 South Holston Dam and Res

48,000,000 ervoir..

9, 400,000 9,400,000 Watauga Dam and Reservoir

2,700,000 21, 500,000

9,500,000 9, 500, OCO Watts Bar steam plant

4, 800,000 23, 800,000

6, 127, 519 9,093, 000 Sheffield steam plant addi

2,789, 921 189, 560 18, 200,000 tions...

2,000,000 2,000,000

4,000,000 Total obligations $234, 832, 571 67, 663, 853 144, 407,000. 118, 317,000 50, 135, 948 615, 356, 372 Investigations for future unified system projects

263, 205 92,885 86,000 86,000 Transmission and other electric plant..

91, 378, 870 9, 216, 799 23, 700,000 25,076,000 Property transfers and ad

vances to municipalities and associations.

5,000, 559 312, 135 226,000 215,000 Repayments from municipalities and associations

-600, 047 --637, 090 -258,000 - 162,000 Power inventories-Net change.--

1, 200, 294 621, 935 461,000 66,000 Total asset accounts for

the navigation, flood
control, and power
program.

332, 075, 45277, 270, 517 168, 622,000 143, 598, 000

Major unified system projects.

The first section of table 2 presents the actual and estimated cost of construction of the major unified system projects. The amounts shown under this heading do not include the cost of generating plants purchased from private utilities. Costs of such plants are included under transmission and other electric plant.

The total estimated cost of major unified system projects of $615,356,372 is $172,504,278 more than the estimated cost of such projects as shown in the estimates originally submitted to Congress for the regular 1942 appropriation. The increase reflects the addition of four projects on the Hiwassee River and its tributaries under the second supplementary power program approved July 17, 1941, the addition of the Fontana, South Holston, and Watauga projects under the third supplementary power program, addition of 14 hydroelectric generating units in unfilled stalls at dams completed or under construction and 3 steam electric generating units at Watts Bar and Sheffield steam plants under supplementary power programs, and extension of the Fort Loudoun Dam across the Little Tennessee River. The total estimated cost of major unified system projects also reflects substantial decreases resulting from economies realized in the construction of the projects. The changes in the total estimated cost are more fully described in the following paragraphs.

The total estimated cost of the Kentucky Dam and Reservoir remains unchanged at $105,000,000. It should be noted, however, that present estimates provide for including an additional hydroelectric generating unit in this project with a capacity of 32,000 kilowatts without increasing the estimated total cost. The estimate now provides for the installation of five hydroelectric generating units with a total generating capacity of 160,000 kilowatts. The schedule for completion of this project has been advanced to provide for closure of the dam at the end of calendar year 1943 instead of 1944 and for all generators to be in service in 1944 instead of 1945. This makes an advance of a full year in the closure of the dam and of about 15 months in the availability of power from this project. The additional unit and the acceleration in schedule are made possible, in part by revisions of estimates of land costs based on experience to date and by confirmation of the existence of good foundation conditions revealed by excavation in the second stage cofferdam.

The estimate for 1943 for Kentucky Dam and Reservoir includes funds for acquisition of approximately 27 percent of the land required for this project, making land acquisition about 89 percent complete by the end of fiscal year 1943. The advanced construction schedule for this project requires that approximately 77 percent of highway and railroad relocation work be completed or under way

by June 30, 1943. The 1943 estimate includes funds for about 50 percent of this work, since about 27 percent will be completed or under construction by the end of fiscal year 1942. The 1943 estimate provides for approximately 40 percent of reservoir clearing work for the project, making that work about 74 percent complete by June 30, 1943, and for continuation of dam construction at a rate commensurate with the advanced schedule for completion of the project. For the dam, the 1943 estimate provides for continuation of construction of earth embankments, making these features about 93 percent complete by the end of that year, removal of stage 1-B cofferdam, completion of excavation and beginning of concrete placement in stage 2, and for beginning of installation of turbines and generators, switchboards, and mechanical equipment.

The total estimated cost of Pickwick Landing Dam and Reservoir is increased from $35,758,408 to $38,130,845 principally to provide for the installation of an additional hydroelectric generating unit in space already provided at this project. This additional unit is provided for under the third supplementary power program. It will add 36,000 kilowatts of generating capacity to the system and is scheduled for completion in July 1944. With this unit the installed capacity at this project will be 180,000 kilowatts. One stall will remain at this project available for a future generating unit.

The total estimated cost of Wilson Dam and Reservoir is increased from $36,189,539 to $41,694,819 principally to provide for the installation of four additional hydroelectric generating units in space already provided at this project. Two of these units have been ordered and will be installed as a part of the second supplementary power program. They are scheduled for completion in the spring of 1943. The other two units will be installed as a part of the third supplementary power program and are scheduled for completion in December 1944 and February 1945, respectively. These four units will add 100,800 kilowatts of generating capacity and will bring the total installed capacity at this project to 385,600 kilowatts. After these units have been installed, two stalls will remain at this project available for possible future generating units. The total estimate for this project also provides funds in the fiscal year 1942 for raising the water level in the reservoir by about 2 feet in order to increase the flexibility of power-plant operations and to reduce the cost of malaria control. This will be accomplished by increasing the height of the spillway and lock gates at a cost of $275,000.

The total estimated cost of Wheeler Dam and Reservoir is increased from $35,770,153 to $39,064,847 principally to provide for the installation of two additional generating units in space already provided at this project. These two additional units are provided for under the third supplementary power program. They will add 64,800 kilowatts of generating capacity to the system and are scheduled for completion in the fall of 1944. The addition of these units will bring the total generating installation at this project to six units with a combined capacity of 194,400 kilowatts and will leave two stalls available for future units.

The total estimated cost of Guntersville Dam and Reservoir is increased from $31,584,668 to $34,074,740 principally to provide for the installation of an additional generating unit in space already provided at this project. This unit will be installed under the third supplementary power program. It will add 24,300 kilowatts of generating capacity to the system and is scheduled for completion in February 1945. The addition of this unit will bring the total generating installation at this project to the full project capacity of four units with a combined generating capacity of 97,200 kilowatts.

The total estimated cost of Hales Bar Dam and Reservoir additions is decreased from $7,000,000 to $6,000,000 as a result of later studies of additions required at this project to provide adequate depths for 9-foot navigation at Chattanooga. Foundation treatment to stop excessive leakage beneath this dam will be about 88 percent complete by June 30, 1942. The 1943 estimate provides for completion of this work, for beginning of the raising of the dam to increase navigable depths at Chattanooga and to increase the power output at Hales Bar, and for final clean-up work on navigation channel improvement downstream from the dam which will be about 98 percent complete by the end of the fiscal year 1942. The 1943 estimate provides about 60 percent of the funds required to raise the height of the dam and the remainder will be required in fiscal year 1944.

The total estimated cost of Chickamauga Dam and Reservoir is shown to increase from $34,748,422 to $37,650,035 principally to provide for the installation of an additional generating unit in space already provided at this project. This unit will be installed under the third supplementary power program. It will add 27,000 kilowatts of generating capacity to the system and is scheduled for completion in February 1945. The addition of this unit will bring the total generating installation at this project to the full project capacity of four units with a combined generating capacity of 108,000 kilowatts.

The total estimated cost of Watts Bar Dam and Reservoir increases from $35,000,000 to $35,900,000. This net increase results from the installation of two additional hydro-electric generating units at this project at a total estimated cost of $3,400,000 and a decrease of $2,500,000 in the total estimate of the project as originally authorized, resulting from savings realized in construction as the original project nears completion. The project as originally authorized included the immediate installation of three generating units and provided space for two additional units. The two additional units have been ordered and will be installed as a part of the second supplementary power program. They will add 60,000 kilowatts of generating capacity to the system and are scheduled for completion in the spring of 1943. The addition of these units will bring the total generating installation at this project to the full project capacity of 150,000 kilowatts. Except for completion of channel improvements downstream from the dam required for 9-foot navigation, this project, including the two additional units under the second supplementary power program, is scheduled to be substantially completed by the end of fiscal year 1943. The original project, including three generating units, will be completed and in full operation by the middle of the summer of 1942. Navigation channel improvements' in connection with this project required to produce an adequate channel for 9-foot navigation will be about 52 percent complete by June 30, 1943.

The total estimated cost of Fort Loudoun Dam and Reservoir is increased from $29,500,000 to $44,000,000. The previous estimate provided for the installation of two generating units, with a combined capacity of 64,000 kilowatts, which are now under construction. The present estimate provides for the installation of two additional generating units with a capacity of 32,000 kilowatts each, bringing the total generating installation to the full project capacity of 128,000 kilowatts. The two additional units will be installed as a part of the third supplementary power program and are scheduled for completion in August and September 1944. The present estimate also provides for a diversion dam across the Little Tennessee River to add the lower portion of that river to the Fort Loudoun Reservoir. This extension is made especially advantageous with the construction of the Fontana project upstream on the Little Tennessee. The two arms of the Fort Loudoun Reservoir will be connected by a canal sufficiently wide and deep to provide for 9-foot navigation. The inclusion of the Little Tennessee River in the Fort Loudoun Reservoir will increase the flood storage capacity of the project from 130,000 acre-feet to 270,000 acre-feet and will increase the continuous electric energy available on the system by approximately 18,000 kilowatts. The estimate for 1943 for the Fort Loudoun Dam and Reservoir includes funds for acquisition of approximately 44 percent of the land required for this project, making land acquisition about 80 percent complete by the end of fiscal year 1943. The construction schedule for this project requires that all relocations and reservoir clearing in the Tennessee River portion of the reservoir area be completed by the spring of 1943, and in the Little Tennessee portion by the fall of that year. The 1943 estimate includes funds for construction of the dam at a rate commensurate with the advanced schedule for completion of the project.

The project formerly described as Hiwassee Dam and Reservoir is now grouped with four dam and reservoir projects on the Hiwassee River, and its tributaries and the entire group of five dams is designated as the Hiwassee pro-ects. The total estimated cost of the group is $55,985,271. The total estimated cost of Hiwassee Dam and Reservoir within this group, with ore generator installed, is $17,385,271 which is in substantial agreement with the previous estimate for this project. Four dams, Apalachia, Ocoee No. 3, Chatuge, and Nottely are being built as a part of the second supplementary power program at a total estimated cost of $36,800,000. The latter two will be completed in fiscal year 1942. The Apalachia and Ocoee No. 3 projects will be completed in 1943. The total estimate for the group includes $1,800,000 for installation of an additional hydroelectric generating unit in space already provided at Hiwassee Dam. This unit will be installed as a part of the third supplementary power program and will add 57,600 kilowatts of generating capacity to the system. It is scheduled for completion in the fall of 1944 and will being the total generating installation at Hiwassee Dam to the full ultimate capacity of 115,200 kilowatts.

The total estimated cost of Cherokee Dam and Reservoir is reduced from $34,500,000 to $31,500,000 resulting from savings realized in the construction of this project. These savings are being achieved in spite of the extreme speed with which this project is being completed. Final closure of this dam was accom

« AnteriorContinuar »