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<br />003140 <br /> <br />fit <br /> <br />SYNOCIS <br /> <br />project in accordance with the plan described in the Bureau of <br />Reclamation report of December 1950, entitled Colorado River Storage <br />Project ~ Participating Projects. Thus in the benefit-cost analysis <br />the South San Juan project was assigned an annual cost of $2.35 an <br />acre-foot of stream depletion as its pro rata share of the cost of river <br />regulation provided by the storage project. It was also assumed that the <br />South San Juan project would receive repayment assistance from power <br />revenues of the Colorado River Storage project through the Upper Colorado <br />River Account. Such assistance for the Shiprock project is recommended <br />in the 1950 report, and it is assumed that such assistance will also be <br />recommended for the South San Juan project when its eligibility to par- <br />ticipate has been detel'mined. <br /> <br />Plan A is shown by the table to have the highest annual equivalent <br />cost per acre and the lowest benefit per acre 0f any of the alternatives. <br />The estimates indicate that its benefit-cost rati~ would only be about <br />0.6 to 1. Moreover, it would make less attractive the power potentialities <br />outlined in Chapter VIII. Further consideration "f Plan A is concluded <br />to be unjustified. <br /> <br />- <br /> <br />If One of the acreages mentioned for the Shiprock project were <br />selected, the 12 alternative D and E plans as presented would at once be <br />reduced to four. The four would consist of a large plan (67,700 or <br />57,000 acres) and a small plan (20,450 acres), each with alternatives of <br />hydraulic.turbine- and electric-motor-driven pumps. <br /> <br />Regardless of the Shiprock project acreage selected, some generalities <br />stand 0ut in comparing the South San Juan project alternatives. Each <br />D plan (hydraulic turbine) has a higher construction cost but a lower <br />operation and maintenance cost than its E-plan (electric motor) counter- <br />part. The E-plan operation and maintenance costs are so high, largely <br />because of electric energy costs, that they exceed the payment ability <br />of the water users. <br /> <br />Under the D plans the water users would be able to fully pay the <br />operation and maintenance costs and a small amount An c0nstruction. <br />Because of the ir h:!,gher construction C'1sts, however, the D plans have <br />substantially lower benefit-cost ratios than the corresponding E plans, <br />the ratios varying from 1.16 to 1,29 for the D plans while the ratios for <br />the E plans range from 1.73 to 2.02. <br /> <br />- <br /> <br />A true cost comparison of the D and E plans may be made by converting <br />all costs to average annual equivalents per acre as is done in Column 18 <br />of Table 1. This shows that the various D plans would be 35 to 70 percent <br />more costly per acre than their c01111terpart E plans. Because the E plans <br />would not be able to pay their operation, maintenance, and replacement <br />costs and also something on construction, however, they would not meet <br />one criterion for participating pr0jects rec~mmended in the Bureau's <br /> <br />iii <br /> <br />i< i. <br /> <br />