WSP08921

• File Number: 8443.100
• Description: Narrows Unit - Project Description
• State: CO
• Basin: South Platte
• Water Division: 1
• Date: 1/1/1967
• Title: Report on the Narrows Unit Colorado South Platte Division Missouri River Basin Project part 2
• Water Supply Pro - Doc Type: Report/Study

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Supplemental Analysis

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project works for current needs and future uses that may reasonably be
anticipated to develop during the useful life of such project works."

Project facilities would have nO excess capacity or size for
unplanned future uses.

COST ALLOCATIONS

"(6) Allocations of costs to be calculated (a) by at least three
methods; namely, the separable costs-remaining benefits method, the
priority-of-use method, and the incremental-cost method; and (b) on
at least two time periods for amortization - 50 years or the useful
life of the facilities, which ever is the lesser, and 100 years or
the useful life of the facilities, whichever is the lesser."

Table 37 summarizes the results of the cost allocations by the
three methoub for the two periodR. Details of the allocations are
presented in tables 38 through 42.

The separable costs-remaining benefits method
Reclamation procedure and is described in Part IX,
Financial Analyses. "

is the standard
"Economic and

The priority-of-use method uses the justifiable expenditure as
a maximum limit and the specific cost as a minimum limit for costs
allocated to each purpose. The justifiable expenditure, which is
the lesser of the benefits or alternative costs, is first determined
for each project purpose. Each purpose is then assigned its specific
costs, which are subtracted from the justifiable expenditure to
determine the remaining justifiable expenditure. Remaining joint
costs are then assigned to the limit of remaining justifiable
expenditure for nonreimbursable purposes and next to the reimbursable
purposes in descending rank of priority. In the case of the Narrows
Unit, only irrigation is fully reimbursable.

The incremental cost method does not utilize the justifiable
expenditure, but does use separable costs as a minimum limit for
allocations to the various functions. Each purpose is first assigned
its separable costs. All remaining joint costs are then assigned to
irrigation, which is the principal purpose of the Narrows Unit.

INTERl'ST EVIDENCED

"(7) Description of the extent to which the Federal, State, and
local Governmental agencies, and non-Governmental entities have
evidenced interest in participating in the construction or operation

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