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<br />\ 'Z Z lib 01 1 fP ~ r':; <br />~ <br />15'1 <br /> <br />lCp 5 -[oS 'Z. <br /> <br />is $1228 million or about $15,7 million per year. The largest increase, <br />$529 million or 43 percent of the total, is for repayment of irrigation <br />construction costs of participating projects, $128 million or 11 percent <br />for repayment of power construction costs, $236 million or 19 percent <br />for operation and maintenance costs, $200 million or 16 percent for <br />wheeling costs, $98 million or 8 percent for energy purchases, and $37 <br />million or 3 percent for other items (mostly interest and replacement <br />costs), <br /> <br />Another factor contributing to the need for a rate increase is <br />the delay in the schedule for construction of the Central Utah <br />Project powerplants. The estimated in-service date for the plants <br />is now fiscal year 1989, which is 8 years later than the fiscal year <br />1981 scheduled in-service date used as a basis for the establishment <br />of the present power rate. An exact analysis has not been made, but <br />estimates indicate that the 8-year delay has a net effect on project <br />repayment equivalent to about 3 percent or $37 million increase in costs. <br /> <br />A repayment study was made to determine the power revenues needed <br />to accomplish timely repayment of the investment costs assigned to the <br />power function, This study indicated that a rate increase of about 38 <br />percent will be needed by October 1979. Following are the components <br />of the proposed rate (SP-Fl). <br /> <br />Firm Power <br />Demand: $1,93 per kW-month (previously $1,34) <br />Energy: 4.5 mills per kWh (previously 3,4) <br /> <br />Peaking Power <br />Demand: $11.58 per kW-season (previously $8.04) <br /> <br />The demand charge would be based on the same principle as pre- <br />viously established, i.e" the greater of the maximum demand or the <br />seasonal contract rate of delivery, For contract violations involving <br />unauthorized overruns, it is proposed that the rate be 10 times the <br />above rates, the same multiplier as now in effect. <br /> <br />At a load factor of 58,2 percent, the proposed overall rate <br />would be 9.04 mills per kWh. Figure 3 shows the overall rates in mills <br />per kWh at 58,2 percent load factor for the past rates, the present <br />rate, and the proposed rate, The initial rate of 6.0 mills was <br />increased to 6.11 mills or by 2 percent in April 1974, which was in <br />turn increased to 6,55 mills or by 7 percent in June 1977, and it is <br />now proposed that the rate be increased to 9,04 mills or by 38 percent <br />in October 1979, <br /> <br />VI. POWER REPAYMENT STUDIES <br /> <br />A, Repayment Criteria. In accordance with Public Law 84-485, <br />power revenues must be sufficient to: (1) pay all operation, maintenance, <br /> <br />10 <br />