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COLORADO RIVER STORAGE PROJECT 21 based on assumptions add estimates relating to many factors including: water supply and resljltant power-production capability,powerc marketing arrangements, and interest rates. Our comments on certain aspects of the Bureau's financial and economic analyses of the Colorado River Storage Project and par- ticipating proj ects begin on page 27, Pmsuant to our request, the Federal Power Commission (FPC} , made an appraisal of 'engineering and hydranlic criteria used iIlt repayment analyses to estimate firm power capabilities and anticipated, power revenues of the Colorado River Storage Proj ect. The FPO report is discussed on p\1ge 31 and is included as appendix A, pages: 69 through 79, 2, Significant changes in project plans have occurred since authori- zation and an unusually long period is required Jor repayment oj the Government's investment in power oj the Collbran Project, Colorado . Our audit disclosed that significant changes in the constructlQn. and repayment plans filr the Collbran Project have occurred since the project was authori~ed by the Congress in 1952, The principal differences between the :revised plan and the authorized plan are (1)' the elimination of the specific municipal and industrial water supply features because the city of Grand Junction, Colorado, declined to participate in the project, (2) the relocation of the Cameo power plant to the Lower Molina site, and (3) an increase in total installed generating capacity of the proposed power plants from 7,400 kilowatts to 13,500 kilowatts, We found also that, based on Bureau studies and a rate of 8,8 mills a kilowatt-hour for firm power, it will take 61 years to repay, with interest, the Government's investment in power; the studies show also th~t it will take another 14 years after power has been repaid, or a total ;of 75 years, to repay irrigation construction costs which are beyond the water users' ability to repay within their 50-year contract period,. A more detailed discussion of the Collbran Project appears on pages 38 through 41. 3. Project beneficiaryes are 1),ot required to reimburse the Government Jor investi.gation costs financed Jrom the Colorado River Develop- ment Fund ; Under reclamation laW, investigation costs applicable to authorized projects are generally r:eimbursable by project beneficiaries, How- ever, since there is no s'pecific legislative requirement for reimburse- ment of expenditures made from the Colorado River Development Fund, the Bureau considers all costs financed from such fund as nonreimbursable even th,\lUgh certain costs are applicable to authorized projects and are transfer,red to and recorded as a cost of such projects. A mOre detailed discussion of the activities financed from the Colorado, River Development Fund is contained on pages 51 and 52. , . 4, Accounting and Ji.nanciol policy , The finllJlcial statem~ts (schedules 1 through 3) included in this report present on a combined basis the assets and liabilities and the. results of operations of the major activities of the Bureau of Reclamac tion in the upper Colori1do River basin, These financial statements;