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<br />SENT BY:WEST. AREA POWER <br /> <br />: 7-10-97 2:42PM <br /> <br />80152450 1 7~ <br /> <br />3D:! 8bb ~V~:~ Of ( <br /> <br />luJy9lll.I~J7 <br /> <br />'? AttlcbmeDll <br />o <br />"J <br />l:).. <br />~ <br />t-i' UptiftnAI MNhodt rar MAllin, ltp tar.. AMudio" orpuwerJ. ReDI)'IDL!nl: nfpjlrf n( th.. <br />ew: <br /> <br />The PRS providel no clueJ regardins methods to deal with a reduRion of power'. repayment <br />ob\igulon of S 13 million. While 1lIl8Iysis completed by Western is aimed at a 50% coSl.ruu-e and <br />",te neutrality, It does not leave everything intact. This allachment describca a number of opLiuns <br />for dl:aling with a reduction of power revenuesuailltance of $13 million toward the CUP. None <br />of Lhese options are currently endoned by partieipams of the RlP Ad Hoc Long-term Fundi.ng <br />Committee. <br /> <br />1. The "Dod't BuDd It" Optioll <br /> <br />IdentifY a feature of~ BoruU:ville Unit afthe CUP that i. worth $13 million or a separable part <br />of a feature wonh this 1II110wU. Don't build it, thereby reducing the eongre.ssionll appropriation <br />and thereby not requiring a repayment. <br /> <br />Who PlIY" <br /> <br />The followins optiona d.sc;ribe a number of payment options. The burden of this expense, <br />regardle88 ofthe option chOllen, could be bom<: in one of two wa~s. Either the State of Utah <br />could .houldet the entire burden, or the Upper Basin Stall:. could share L1le burden. All of the <br />oJ)tlollll below are concepts which could b. handled either wa.y. In the above upLion. !he State of <br />Utah bares the entire hu rden <br /> <br />1, The "PlY Tlp-frnnt" nption <br /> <br />A:!. Congress appropriates mnney tG COM\JUct the CUP, in one year it reduces the approprialiun <br />needed LO ~onatruct the CUP by $13 million. The state(s) comes up with 513. Thereby all of the <br />CUP is conSlnlcu:d, bUl the amount Gfmnney required by Western to repay the costs of the CUP <br />i. redu~ by S 13 million. <br /> <br />3. Tb~ "Pttv ~O VeA., Lam'" Ol'tiOD <br /> <br />In this opliGn, Consre.. appropriatea fund. jUBt L1le way il does now. However, when repaY""'DI <br />of the CUP is required, SO yean after the construction and d~c1opmenl period (2057) the lItate(s) <br />pays the Treasury S 13 million in lieu oeWeSlcm. <br /> <br />3 <br />