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<br />StNT BY:WEST. AREA POWER <br /> <br />: 7-10-97 2:43PM <br /> <br />801.S24SUlh <br /> <br />JUJ 000 :s" ,.... .... v' . <br /> <br />o <br />o <br />l) <br />~ <br />~ <br />'I <br /> <br />July 9th. 1997 <br /> <br />Attachment 2 <br /> <br />A. BrilfDesc.;ptioD oFWestero'l Power~PlYmeDI ~rllrly for Ihe CR..l;P <br /> <br />By law, revenues GOU~ byWestcrn from !he 5111e of electric pillller must he sufficiem to pay <br />required Cl<pen&e8 and repayment obligations. A1nunll these revenue requirements are: operation <br />and maintenance of existing generation and transmis.;un facilities, repayment 10 the U.S. Treuwy <br />orlhe portion oflbe CP.SP faQlities auiJMd to power, repllymcnt 10 the U.S. Treasury of all of <br />cost of CRSP participatiJIs irrigation projeall usigncd to power uuI "apporoorunent". <br /> <br />The revenue required t.n be collected by W utem is determined by tl1c sclwdulin8 of required <br />repayments to the TrealUT}'. Some facti: <br /> <br />1. Western's repayment ofCRSP participating irription projc;;ts /I1llst be wmpleted <br />within'O years oflhl! construction and development orthc projc:,;t, but Lhele is no <br />~uirement to malee R payment before then. Repayment of these projects cwry no <br />interest requirement. <br /> <br />2. Repayment oCo!her CRS!' feuures (eg' da1\tJl, tnnsmiuion lines) must be <br />completed within SO year, of their construction (plus any applieable development <br />period) but there is 110 rcquirementto make a payment before then. Repayment of <br />these features 0CClQ with thl: intere,t rate prevailing at the time of construetion. <br />The.. consist of: original wlIlILr\lClion items, replacements of !Iulse items which <br />have worn out and additions to uriKinal ccnstruClion. <br /> <br />J. CRSP features, li~ tranami03ion \illc~, 114\"e a usefulllfe and are assumed to be <br />replaced at the end of their uscfullire (c11l1t\l r~placemems). <br /> <br />4. Very little new construction (additions) is C>(ll~lcd to occur In the future <br /> <br />,. It il Western's policy to pay olf6rst, those things which carry the highest Interest <br /> <br />6. The revenue requirement is determined for a study period which IlISts until all of <br />the requirerl payment. are made - that is - until all of the authorUeu irrigation <br />projects have been repaid. <br /> <br />7. The rcv(:twc: requirements in the PkS are shown for each y_, but it is the <br />el.lmulative r~vcnl.lc requirement for all yem that is divided by the estimatcd sales <br />of electrical energy for all years which resulto in the romposite "rata". <br /> <br />8. The CRSI' Act requires puw... to repay the lion's share ofthe costs of <br /> <br />5 <br />