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WSP09752
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Last modified
1/26/2010 2:55:37 PM
Creation date
10/12/2006 3:54:36 AM
Metadata
Fields
Template:
Water Supply Protection
File Number
8220.100.50
Description
CRSP - Power Rates
Basin
Colorado Mainstem
Date
1/1/1983
Author
RW Beck and Assoc.
Title
Report on Colorado River Storage Project Proposed Adjustment of Transmission and Power Rates
Water Supply Pro - Doc Type
Publication
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<br />. <br /> <br />. <br /> <br />II-13 <br /> <br />amouat of revenues available in a given year for payment of participating proj- <br /> <br />ects. <br /> <br />Western indicated at the Public Information Forum that annual replace- <br /> <br />ffient costs are determined by a computer program and are based on service lives. <br /> <br />If the costs were spread out, the burden on revenues for payment of replacement <br /> <br />costs would be deferred to the future years when there are ample revenues <br /> <br />available to pay all costs and thus, would move the year of the "pinch point" <br /> <br />futher into the future or reduce it in its present year. The overall effect <br /> <br />..,.. <br /> <br />would be a reduction of required revenues, resulting in a lower current rate <br /> <br />level. <br /> <br />A portion of annual replacement costs is capitalized from FY 1973 to <br /> <br />FY 2008. After FY 2008, except for FY 2014, replacement costs are paid in the <br /> <br />year they occur. Following generally accepted accounting principals, replace- <br /> <br />ment costs would be amortized over the remaining service life of the facility. <br /> <br />This amortizstion procedure could aid in deferring costs past the "pinch point" <br /> <br />year. In deferring costs past the "pinch point", a smaller revenue increase is <br /> <br />necessary to meet the revenue requirements in the initial "pinch point" year. <br /> <br />Projections of Salable Capacity <br /> <br />Power repayment studies conducted prior to the FY 1977 PRS assumed <br /> <br />that only capacity available in the most adverse year would be contracted for <br /> <br />and sold. <br /> <br />Beginning wi th the FY 1977 PRS and continuing to the present, the <br /> <br />assumption was to utilize a lower quartile capacity projection. <br /> <br />Winter and summer salable capacity estimates are based on full plant <br /> <br />, <br /> <br />I <br />, <br />; <br /> <br />capacity reduced by 10% as a reserve allowance (transmission losses are expect- <br /> <br />ed to be offset by diversity). A sequential hydrological analysis was used to <br />
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