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<br />.g <br />.1, <br />; . ~} <br />'\. <br />,.. <br />""(- <br />\~ <br /> <br />~, <br /><< <br />-- ;\-~ <br />-..i:" <br />\', <br />a <br /> <br />".,,~ <br />." <br />c) <br />",;i <br />-\) <br />\. <br />X: <br /><:v <br />t.. <br />() <br />-:;: <br /> <br />') <br /> <br />~ <br /> <br />. <br /> <br />. <br /> <br />1-6 <br /> <br />The guidelines set forth in RA6I20.2 establish, among other things, <br /> <br />cost recovery criteria to be utilized in setting rates and a cost evaluation <br /> <br />period. The cost evaluation period is stated as, "A period of time during <br /> <br />which future estimates of costs and revenues may be modified to reflect chang- <br /> <br />ing conditions, such as additions to the power systems or inflation. This per- <br /> <br />iod of time is normally 5 years. Revenue and cost estimates for the remaining <br /> <br />years of the power system's repayment period should reflect price levels, rate <br /> <br />levels, and contractual commitments consistent with conditions anticipated <br /> <br />during the cost evaluation period." (pg. 8) <br /> <br />RA6I20.2 further states that "the allocated power investment costs of <br /> <br />all authorized power system facilities for which Congress has APPROPRIATED <br /> <br />FUNDS FOR CONSTRUCTION and which WILL BE IN SERVICE DURING THE COST EVALUATION <br /> <br />PERIOD will be included." (pg. 11) (Emphasis added) <br /> <br />An established criterion that has been used in the past for reclama- <br /> <br />tion projects is to market power at "the lowest possible rates to consumers con- <br /> <br />sistent with sound business principles." In addition, it is a DOE policy that <br /> <br />"power repayment studies will be prepared annually using sound and consistent <br /> <br />financial forecasting techniques. These forecasts should be designed to approx- <br /> <br />imate as closely as possible the results expected to be achieved in the his tori- <br /> <br />cal power system financial statement." (RA6I20.2 pg. 2) <br /> <br />There is an apparent conflict between the various guidelines, cited <br /> <br />above, in relation to the inclusion of future projects in power repayment stud- <br /> <br />ies and in the establishment of current rate levels for the CRSP. In the Rate <br /> <br />Brochure, Western has included all authorized projects for the system, apparent- <br /> <br />ly based upon its interpretation of Section 6 of P.L. 84-485 which states that <br /> <br />the Secretary shall prepare a report annually which shall "reflect accurately <br />