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. . 1-5 Rate Setting Criteria of Western Based on the Rate Brochure and the transcript of the Public Informa- tion Forum held November 16, 1982 in Salt Lake City, Utah, the rate setting cri- teria followed by Western are primarily based on Public Law 84-485 which author- ized the CRSP and participating projects, and on DOE Order RA6120.2 (RA6120.2) which sets forth rate and repayment guidelines for Federal power marketing agencies. Wes tern's summa ry of Public Law 84-485 states that CRSP revenues are used to pay operating costs of the CRSP, to repay the Federal investment allo- cated to power, to repay municipal water and storage units allocated to irriga- tion, along with applicable interest, if any, and to repay the costs of partici- pating projects allocated to irrigation. Special conditions are attached to revenues available for repayment of the costs of participating projects allo- cated to irrigation such that the revenues are apportioned among the states as follows: Colorado 46%, Utah 21.5%, Wyoming 15.5% and New Mexico 17%. However, each state is first apportioned the net power revenues from participating proj- ects within the state plus the revenues from sale of the state's municipal and industrial (M&I) water. The Department of Energy Regulation No. RA6120.2 dated September 20, 1979, canceled Department of Energy Interim Management Directive No. ,1701, Ser- ial No. 12, dated September 28, 1977. This regulation has the stated purpose, "To establish financial reporting policies, procedures, and methodology for all Department of Energy (DOE) Power Marketing Administrations (PHA' s) except where deviations therefrom are specifically approved by the Secretary, authorized by statute, or identified and explained in a transmittal memorandum or in the foot- notes to the reports." RA6120.2 is included in this report as Exhibit No. I-i.