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<br />OTHER PROBLEMS WITH 1974 AND 1976 <br />REPAYMENT STUDIES DATA <br /> <br />" <br /> <br />Old hydrology study used to estimate <br />future revenues of Western Division <br />Pick-Sloan units and individually <br />authorized projects <br /> <br />The Lower Missouri Region has used an old hydrology study to determine <br /> <br />the future quantity of water and the resulting future power revenues <br /> <br />for the Western Division Pick-Sloan units and the four individually <br /> <br />authorized projects, Its PRS revenue calculations were based. on its <br /> <br />1956 hydrology study covering the years 1906-1954. <br /> <br />We think it is questionable to base revenue estimates on 20-year-old <br /> <br />data. Data from the period 1906-1954 may be quite different from data <br /> <br />from 1906 to the most recent year, Using non-current data could <br /> <br />cause the System's power rates either to be higher than necessary, by <br /> <br />underestimating the future volume of water and the resulting future <br /> <br />revenues that should be available; or to be too low to meet the System's <br /> <br />repayment requirements by overestimating future revenues. The <br /> <br />Department's March 1976 policy statement (730 DM 4) to be applied <br /> <br />beginning with the Bureau's 1977 repayment studies, requires that <br /> <br />hydrology data be current to within 5 years, if possible. <br /> <br />Staff of the Lower Missouri Region told us that budgetary restraints <br /> <br />have prevented the Lower Missouri Region from preparing more current <br /> <br />hydrology studies. Rowever. the Corps of Engineers prepares an annual <br /> <br />study for the main-stem Missouri River, and the Upper Missouri Region <br /> <br />prepares an annual study for the tributaries in its area. Both <br /> <br />annual studies are used in the System repayment study. We believe <br /> <br />25 <br /> <br /> <br />