Market Mechanics 



63 



Hydroelectric sites of such magnitude, however, are restricted to 

 a few of the nation's rivers. Of more general significance is the 

 high degree of physical interdependence between headwater storage 

 and downstream generating capacity. Storage provided at upstream 

 reservoir sites will often do double, and in some cases greater, duty 



Stonfc drmkvB wttoA: 



MtMil Hiniiy Hg<n, Octl-llif.ll 



FIGURE 12. Downstream External Economies for Power Produc- 

 tion of the Hungry Horse Project (adapted from chart published by 

 Bonneville Power Administration) 



