WSP10931

• File Number: 8112.600
• Description: Arkansas White Red Basins Interagency Committee - AWRBIAC -- Reports
• Basin: Arkansas
• Water Division: 2
• Date: 3/13/1952
• Title: Cost Allocation - Third Progress Report of the Work Group on Benefits and Costs - AWRBIAC Committee
• Water Supply Pro - Doc Type: Report/Study

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annual operation, maintenance, and replacement charges (S1L'!l. of fi:<:Dd
~lus oporating charges) for each function of a multiplo-pur~ose pro~€ot.
f separation of the fi:<:ed and operating charbes thus alloeated as a
total is desired, it is recommended that it b8 accomplished, using
tho same proportions as previously developed for the total annt;al
costs, by allocating only the annual Ol~&-R costs and . subtracting the
results from the correspondi.ng previously allocated total ann1\f\.l
costs. Capitalization of this difference at appropriate rate ~ ':;ould
indicate the amounts of the total investment cost of the project
properly allocable to the corresponding function.

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Dhere tlw Separable Cost-Remaining Benefits method is used
and where project formu~ation has not 'ceen developed in the detail
suggested in the recommended procedures outlined in the Green Book
it may be nDcessary to use specific costs in lieu of separable costs
in those cases where reestimatint; would be unduly burc.e~some.

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It is recommended that the step-by-step procedures in ap-
plication of the Separable Costs-Remaining Benefits method, as set.
forth by illustrative examples in the Green Book and in the attached
Exhibits A and B, and that the supplementa.ry sta~en'18nts. crite;-ia,
and recommendations as set forth above be adopTed for purposes of the
AlfIF. report.

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