as an immediate effect on the systems of others. It is essential that equate attention be given to operation and maintenance functions the Administration. Our estimate for this purpose proposes permance to meet accepted utility practice.

Gross operating revenues derived from the sale of power and which ze deposited in the Treasury are estimated at $68,350,000 for 1957 as pared to an estimated amount of $60,861,567 for 1956. Actual evenues for fiscal year 1955 were $48,926,541.

SOUTHEASTERN POWER ADMINISTRATION

The estimate for operation and maintenance of the Southeastern wer Administration is $1,378,000.

In fiscal year 1956 the Administration is marketing power from Ten operating projects constructed by the Corps of Engineers. The tal installed capacity of these projects is 1,031,600 kilowatts. We pect to receive revenues from the sale of power from these projects f approximately $15.1 million. In fiscal year 1955 the actual venues from these projects was $7,318,426.

In fiscal year 1957, 3 new corps projects will be placed in operation th an initial capacity of 191,000 kilowatts. When these projects added to existing capacity of projects in operation, the Adminisation will have available a total of 1,222,600 kilowatts for disposal. om these 3 new projects-Buford in Georgia, Jim Woodruff in rida, and Old Hickory in Tennessee--we anticipate revenues of proximately $1,957,000. The total anticipated revenue from all rating projects in 1957 is estimated at $15.5 million. These reve estimates are based on two assumptions: (1) that a median water pply will be available, and (2) that long-term contractual arrangeLts for the transmission and sale of power to preferred customers ll be concluded.

In this respect, it is a real pleasure to report that we have executed heeling arrangement with the Carolina Power & Light Co. whereby remaining one-third of the output of the Kerr project will be mared and will make 30,000 kilowatts available to preferred customers the State of North Carolina.

We are continuing our negotiations with the Georgia Power Co. the preference customers for the disposal of the remaining oneif of the output of the Clark Hill project on the Savannah River. is our opinion that we will reach an agreement in the very near

ire.

The estimate before you includes funds for wheeling charges under contract with the Carolina Power & Light Co. and the purchase of ergy and wheeling charges under the Vepco contract.

The Administration will be required to operate and maintain 1,004 es of high-voltage transmission lines and 13 substations with a pacity of 286,500 kilovolt-amperes which were constructed by the vernment. The funds requested will provide adequate line and station maintenance to insure continuity of service to customers. perating facilities must be used and manned to integrate the hydro d steam generated power. This combined capacity must be scheded and dispatched to meet customer load demands in the most nomical manner. Proper scheduling of generation from the hydro and steam plants results in distinct savings in overall operating costs.

propose the appropriation to the continuing fund of $6,400,000 of receipts from the sale of power for payment to private utilities and the G. and T. cooperatives for contractual expenses in connection with the purchase of energy, payment of wheeling charges, and rentals for the use of transmission facilities.

Gross revenues from the sale of power which are deposited in the Treasury, and from which appropriations are made to the continuing fund, amounted to $3,687,773 in fiscal year 1955 and are estimated at $9,350,000 in 1956 and $12,325,000 in 1957.

In the enactment of the Public Works Appropriation Act, 1956, the Congress appropriated $6 million in the continuing fund and instructed that the Department reactivate contracts with certain generating and transmission cooperatives. In connection with reactivating these contracts, we were instructed to amend existing contracts to provide1. For the deletion of provisions providing for the option to purchase the transmission or other facilities.

2. That the cooperatives will operate and maintain the systems leased to the Government.

3. That accounts for power purchased and sold be settled on a net balance basis which would include operation and maintenance costs on generation and transmission of cooperative facilities.

4. That power and energy be delivered to the load centers of the cooperatives at the basic marketing rate.

The Department and the G. and T. cooperatives have executed letters of agreement reactivating the formerly inoperative contracts. Under these agreements the Department is now making payments to the G. and T. cooperatives for energy generated at steam plants, for rental of transmission facilities, and for expenses incurred by the G. and T. cooperatives for operation and maintenance of their respective transmission facilities.

In connection with amendments to the contracts which would delete the option to purchase G. and T. transmission facilities and include a provision to settle accounts on a net basis, the Department has submitted these matters to the Comptroller General for decision. In an opinion dated February 14, 1956, the Comptroller General ruled that there would be no legal objection to amendment of the contracts to meet these objectives. We are preparing amendments to accomplish the directions of the Congress.

Mr. Chairman, this concludes my statement. I would like to submit for the record summary tables for the Bureau of Reclamation, Bonneville Power Administration, Southeastern Power Administration, and Southwestern Power Administration covering:

Summary of 1956 appropriations compared with 1957 budget estimates by activities;

Estimated and actual miscellaneous receipts and trust funds deposited in the Treasury for fiscal years 1955, 1956, and 1957;

Comparison of authorized employment for fiscal year 1956 and estimated employment for fiscal year 1957, financed by annual definite appropriations.

(The information referred to follows:)