294 



MULTIPLE PURPOSE RIVER DEVELOPMENT 



power. See hydroelectric power; power 



rates 

 power markets, 61-62, 162 

 power output, 66, 144-45, 145n 

 power rates: and certificates of neces- 

 sity, 249n; and compensation for 

 flood control costs, 192-95, 198; and 

 cost of flood protection, 192; and 

 difference in accounting costs, 211; 

 discriminatory, 192; of federal agen- 

 cies, 209; under public development, 

 275; and rates of return to private 

 utilities, 192, 243; regional, and 

 aluminum reduction facilities, 248 

 preference clause, defined, 234, 235 

 preferred stock, 188, 189 

 President's Water Resources Policy 



Commission, 175, 183, 185 

 price elasticity of consumer demand, 



99 

 "price taker," 19 



prices {see also under product mar- 

 ket): average, 74; equilibrium, 22rj, 

 75; factor, 31, 32; market. 19, 31-32, 

 71, 74, 77; product, 31-32, 41, 44, 45, 

 46, 71; valuation of marketable proj- 

 ect services by, 75 

 pricing practices of private utilities, 



243-44 

 private cost-gain calculus, 161, 183n, 



197; need for adjustment of, 267 

 private development of river basins 

 {see also investment, private; pri- 

 vate utilities; and under Alabama- 

 Coosa river system; Hells Canyon; 

 and Willamette River project), 3, 

 135: 

 and accelerated amortization, 220-23, 



260-61.264,276; 

 and accounting cost differences, 210, 



Table, 208; 

 and compensation issues, 153, 153n, 



163-66, 171, 180, 192-96; 

 depreciation, policy on, 210; 

 distribution of costs under. 220-23, 



224, 227; 

 distribution of gains under, 239, 



260-62; 

 efficiency conditions for, 171-72, 267- 



68; 

 financial feasibility of, 10; 

 FPC valuation of, 162-63; 



private development, cont. 



incentives, under an integrated sys- 

 tem, 171; 



incidence of shifted tax burden un- 

 der, 220-23; 



income redistributive consequences 

 under, summary, 263-64; 



as inconsistent with objectives of 

 Northwest development, 276; 



investment decisions, cost and mar- 

 keting factors in, 55-56, 153-56; 



and nonmarketable services, 55-56, 

 153, 196; 



npt prohibited under Federal Power 

 Act, 134; 



plan of operation as factor in deci- 

 sions of, 156-57; 



private vs. social accounts, 153; 



profitable private scale of develop- 

 ment, 156; 



public attitudes toward, 13, 70, 265- 

 66; 



and public subsidy, 163-64, 269; 



rates for utility companies, methods 

 of determining, 155; 



sacrifice of efficiency in. 163; 



and special marketing arrangements, 

 271; 



tax shifting under, 220-23, 224, 227 

 private and social product, divergences 



between, 71-72, 133, 136-37, 197; sum 



of, in Hells Canyon case, 159, Table, 



158 

 private utilities: 



in BPA marketing territory, 236; 



decreasing-cost nature of, 59, 59n; 



depreciation charges of, 221; 



distribution of BPA energy sales, 

 237; 



distribution of gains from profits of, 

 244, Table. 245; 



distribution of gains from sales by, 

 243-46; 



effective interest rate on investment 

 funds for, 189, 189n; 



gains to equity shareholders of, from 

 rapid amortization principles. 223. 

 260. 276; 



intra- and extra-regional ownership 

 of. 240-41, 244; 



investment funds, sources of, 188; 



monopoly privileges granted to. 220; 



