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. . 1-9 Because the future participating projects are so significant in deter- mining 'the required level of rates, the majority of this report addresses alter- native assumptions that can reasonably be made with respect to these projects. However, in analyzing the Rate Brochure, we have identified other issues which, although secondary in impact to the future projects, contribute to the rate level proposed by Western. These other issues include the costs associated with storage unit irri- gation investments, projections of salable capacity replacement costs, opera- tion and maintenance expenses, water depletions, revenue projections, and sur- plus revenues. In aggregate, those issues may have a significant impact on the rates set. Summary of Results We have prepared alternative studies, run by Western using their re- payment programs, discussed in detail in Section III hereto, based on various assumptions concerning participating projects not currently in service. The result of one of these studies shows that the present rate(l) levels are suffi- cient to fulfill the repayment criteria set forth in RA6120.2. Based on the Rate Brochure, this results in savings to Western's preference customers of an average of about $18 million per year over the study period. Our study which includes only those future projects which are sched- uled to have initial water service within the five year cost evaluation period produces a composite rate at 58.2% load factor of 7.75 mills per kWh. (1) Present rates referred to in this report are the Firm Power Rates which became effective on an interim basis on January 23, 1981 and are currently subject to refund pending the outcome of the F"RC proceedings, the Firm Transmission Rate which became effective in May 1974 and the present Non- Firm Transmission Rate which became effective in October 1965.