246 MULTIPLE PURPOSE RIVER DEVELOPMENT 



TABLE 52. Summary of Regional Distribution of Gains from Federal 

 Power Sold by Private Utilities 



Regional gains Extra-regional gains 



($ thousand) ($ thousand) 



Final demand — — 



From before-tax rewards to capital on 

 resale of federal power: 



Dividends or increased net worth .... 16.7 110.3 



Reduction in general tax liabilities . . 16.0 112.0 



From derived-demand uses: 



Dividends or increased net worth .... 52.8 17.6 



Reduction in general tax liabilities ... 8.8 6L6 



Labor's gains 30.7 — 



Consumers' gains 56.3 28.4 



Total "181.3 "329.9 



" Discrepancy in totals caused by rounding. 



GAINS FROM SALES TO FEDERAL AGENCIES 



Of the two remaining classes of purchasers from BPA, federal 

 agencies absorbed 5.79 per cent of the increment added during 

 fiscal year 1955. To a very large extent, such sales are to defense or 

 defense-supporting agencies, such as the Atomic Energy Commis- 

 sion. There were some sales to the Bureau of Reclamation for 

 pumping associated with the irrigation projects in the area; to a 

 very large extent these represent sales for use as factor inputs. 



When federal agencies such as the Atomic Energy Commission 

 can meet their energy requirements at less cost than from an alter- 

 native source of power, the gains will be reflected in a reduced 

 operating budget. The ultimate gainers will be those whose tax 

 liabilities support the federal agencies, and the regional locus of 

 gains will be similar to those given by our tax models in Chapter 

 VII. 



If we assume that the alternate source of supply would have been 

 energy from a privately developed reimbursable project feature, the 

 annual savings would amount to about |86,200 annually. The 

 regional distribution of gains for the two previously used tax 

 models is given in Table 53. 



