Laserfiche WebLink
<br />. <br /> <br />The Department of the Interior believes that to continue to charge <br />three percent on these'imestments, as compared to 2~ percent <br />charged elsewhere, discriminates against the Missouri River basin. <br />This being so, it, seems appropriate that steps be taken to give the <br />area the benefit of the same interest criteria that has historically <br />been applied elsewhere. <br /> <br />In addition to approval and adoption of the foregoing precepts, the <br />study shows that system revenues must be increased by approximately <br />$1,500,000 annually or an average of 0.25 mills per kilowatt-hour of <br />marketable firm commercial power applied to the Eastern Division only, <br />To accomplish this increase in revenues, power rates will need to be <br />adjusted so as to achieve a return approximately 5 percent greater <br />than the yield under the Eastern Division existing, rate structure. <br />The Department of the Interior is prepared to initiate such rate <br />changes under existing administrative authority. <br /> <br />The financial studies have been carefully made, The standards <br />employed and recommended are consistent with current Congressional <br />policies, taking into account the inherent differences between projects <br />and the fact that this power project was substantially completed before <br />the standards were applied. We recommend that Congress accept the <br />report and take appropriate action so that the remaining units may be <br />authorized and constructed on a timely and orderly basis, <br /> <br />Careful consideration of the foregOing matters suggests that legislation <br />be soughC:- to authorize the use, of the interest rate criterion which has <br />been used in current analyses and which has been described in detail <br />herein, More specifiC recommendations in this regard will be made in <br />a separate communication at an appropriate future occasion. <br /> <br />Sincerely yours, <br /> <br />3i. -1.1 /~ <br /> <br />ASSISTANT Secretary of the Interior <br /> <br />Enclosure <br /> <br />7 <br /> <br />