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<br /> <br />~ <br />00 <br />~ <br />'M::>o <br /> <br />ECONOMIC,AND FINANCIAL ANALYSIS <br /> <br />The analysis of the economic justification of the augment a- <br /> <br />tion plan does not readily lend itself to the applicati.on of <br /> <br />typical benefit-cost procedures of conventional Reclamation <br /> <br />projects. The primary emphasis of this economic analysis is to <br /> <br />define the magnitude of the investm~nt and operating costs <br /> <br />involved so that a judgment can be made on the reasonableness of <br /> <br />using nuclear desalting of ocean water "S a source of augmentation, <br /> <br />and to determine whether sufficient revenues are available in the <br /> <br />Development Fund to cover reimbursable costs within the general <br /> <br />framework of Reclamation financing criteria. Since adequate <br /> <br />procedures have not been developed for m:;asuring the benefIts <br /> <br />associated with meeting the Mexican obligation, somewhat arbitrary <br /> <br />benefi t e,stimate. were used for this reconnaissance effort. <br /> <br />~conomic _9.osts <br /> <br />The derivation of costs can logically be divided between the <br /> <br />cost of producing desalted water and 'pumping power at the dual- <br /> <br />purpose desalting complex and the cost of conveying product water <br /> <br />to the river. <br /> <br />Dual-Purpose Nuclear Desalting Plant--The fi.nancial criteria, <br /> <br />the method of allocating joint heat costs of the nuclear reactors <br /> <br />between water and electricity, and the plant-loading characteristics <br /> <br />28 <br />