fuel a mine mouth power plant. The first two generating units, with an aggregate capacity of 350, 000 kilowatts, went into operation in early 1963. They will require 1. 5 million tons of coal annually. A third and larger generating unit, having a capacity of 225, 000 kilowatts and requiring 1 million tons of coal per year, went into operation in July 1964 --a year earlier than first anticipated, bringing the total plant capacity to 575, 000 kilowatts. The combined requirements of these three units are 2.5 million tons annually. The term of the contract is for 35 years, with options for an additional 15 years, and the price is subject to escalation. The contract contemplates a fourth unit of 225, 000 kilowatts, but that option has not yet been exercised. The first two generating units went "on stream" several months after the beginning of our 1963 fiscal year, and the third unit came into commercial operation when our current fiscal year was two-thirds gone. It will be 1965, therefore, before we shall for the first time deliver a full year's fuel requirements of 2. 5 million tons to the Four Corners Power Plant, and the effect on our earnings will be greater than in either this year or last. This development is one of the most significant in Utah's recent history. Studies made by us and by others indicate that in the years before nuclear fuel becomes fully competitive in the West, coal will be a prime source of energy for the immense growth requirements of the electric utilities. Under our present contract only about a third of our Navajo coal -12-