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, , In addition to changes in the fie~d of pr~cedure and criteria, the project has been subjected to a v~rie~y of uncontrollable influences that have, in interaction with the foregoing, contrived to accentuate repayment problems. For example, ;project ravenues for the first twelve years of project operation have been only sligntly ovar one-half the amount anticipated for the period. This arises from two causes, namely; (1) adverse _yater supply conditions and (2) slower than expectad installation of generating capacity, ;;'ater year 1962 was the first normal water year since 1954. 'Prior to undertaking the painstakipg fi.nano:ial analysis that is summarized in this report, the Dep~rtment first considered appropriate opportunities to increase project ;revenues. Some of tha pCS$ibilities have matured and are included in the analysis; others hold real promise for increasing project ravenues in the future, but have not been con- sidered in the current study. In the first category, the most si~nificant item is the previously Cited Basin Electric Cooperative arrang~ent, the additional net revenues of $980,000, and other benefits that ~t provides. In the second category are interconnections between the M~ssouri River Basin Project system and other Federal systems that are eit~er under construction or receiving careful conSideration at the planning level. Transmission lines to interc.:lnnect thlO Missouri River Bailin Project ,dth Southwestern Power Administration and with the Colorado River Storage Project are under construction, Studies are in prog~ess of' a major connecticn with the Bonneville Power Administration. ~he financial benefits eo ehe Missouri River Basin Project from these interconnections will be s4bstantial; however, ehey are not as yet defin~te enough to be included in a financial analysis. There are other areas of potential, financial improvem>!nt to the project, such as pooling arrangements with the commercial c.:lmpanias and other electric systems of the area, whicp will be pursued diligently as the opportunities arise. Alehough these long~range opportun~ties ~~ist, it is obviously necessary and desirable to act immediately tb establish appropriate and definitive standards for the project's financ~al management. We have studied the project carefully, testing its fin~ncial structure against the criteria employed in projects thae have beej1 authorized by tne Congress in recent years. Although the criteria reco~ended are similar to crieeria employed in more recent authorizat~ons, thev~e not identical. 1 . It must be remembered that this pr~ject was planned and built under more liberal standards. If 1962 criter~a had been applied when the structures were authorized and constructed, w~ would have a substantially different project with different units and a~ altered construction schedule. 4