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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />9 <br /> <br />proposed are earmarked first for utility purposes rather than for the primary <br /> <br />purpose of wheeling Storage Project power. <br /> <br />To determine the effect the proposed combination private-federal system <br /> <br />has on preference customers, it is necessary to compare this system with the <br /> <br />modified "yardstick" system. The revenue requirements associated with these <br /> <br />two systems are analyzed year by year over a 100-year study period. <br /> <br />The usual Bureau repayment period of 50 years for each feature of a <br /> <br />project is considered a matter of law -- project investment allocated to <br /> <br />power to be repaid with interest, and investment allocated to irrigation <br /> <br />without interest, all to be repaid within 50 years from the date of initial <br /> <br />service. The Bureau has applied this rule in setting up its initial repayment <br /> <br />studies -- Financial and Economic Analysis, dated December, 1958 - for the <br /> <br />Colorado River Storage Project. and Participat.ing Projects. The reimbursable <br /> <br />Storage Project features are repaid in 50 years, and then surplus power revenues, <br /> <br />which are allocated by formula to the four Upper Basin States, are available to <br /> <br />assist participating projects. Each participating project is begun at such a <br /> <br />time that, together with estimated repayment by water users, sufficient revenues <br /> <br />will be available from sales of Storage Project power to complete repayment <br /> <br />within the required 50-year period for that participating project. The lesser <br /> <br />part of investment is repaid by water users, so participating project repayment <br /> <br />is relatively slow until after the first 50 ye ars of the St,orage Project itself. <br /> <br />Then there are large surplus power revenues, and repayment of each presently <br /> <br />authorized participating project takes place rather rapidly. <br /> <br />Eleven such projects are now authorized as participating projects, and <br /> <br />some twenty more are authorized for investi.gation. Hence, there is good <br /> <br />reason for the Bureau to analyze repayment for much longer than the initial <br />