The Camas Hot Springs Exchange

Montana Power Objects
MISSOULA--The Montana Power Company is on record as opposing the proposed Knowles, Paradise, Ninemile and Flathead Lake channel dredging projects of the Army Corps of Engineers.

Either Knowles or Paradise dams would flood out two power sites Buffalo Rapids No. 2 and No. 4 on the Lower Flathead River in which Montana Power is interested, according to Sam B. Chase, senior vice president and counsel of the Montana firm. He reiterated the company's stand that it is prepared to seek a Federal Power Commission license whenever it is determined that neither Paradise or Knowles projects will be constructed.

Chase said Knowles has the same drawbacks as Paradise Project, which he said would flood thousands of acres of valuable agricultural land render useless great areas of additional grazing land, displace 3,500 people, cause a loss of about $200,000 a year in tax revenue in Lake and Sanders counties, preclude construction of the Buffalo Rapids sites, which would add a half million dollars a year to the tax revenues, and cause expensive relocation of railroad lines.

Either Paradise Project's $553,795,000 estimated cost or Knowles costing $258,302,000, would be "enormously expensive," Chase said. He questioned their need to produce power or flood control storage. Libby Dam, already authorized, would provide more storage than either Knowles or Paradise projects, he said.

Montana Power now supplies power to 500,000 residents of Montana and has 671,000 kilowatts of installed capacity, he said, pointing out that there never has been a shortage of power on its system "and never a time when new industry was unable to secure the power it needed." Residential and commercial rate are well below the national average, he emphasized, adding that the company supplies power to rural electric co-operatives at an average of 4.91 mills per kilowatt-hour, one of the nation's lowest rates for REAs supplied by investor-owned companies.

Montana Power's views were presented by Mr. Chase at hearings Monday in Missoula on Clark Fork water resources projects that would cost the taxpayers $1,207,428,000.