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<br />.... <br />00 <br />CO play crucial roles in determining the cost of production. The <br />~1 <br />ability to stage the plants to m>et future needs as they develop <br /> <br />also has an important bearing on overall costs by minimizing <br /> <br />the economic costs of unus~d capacity. <br /> <br />Th6 determination of capital cost for use in the economic <br /> <br />studies includes construction cost and interest during construc- <br /> <br />tion compoted at 3-1/4 percent. A 30-year service life is assumed <br /> <br />ror the reactor, thermal powerplant, and water plant. Consistent <br /> <br />with Reclamation financing criteria, components for taxes and <br /> <br />insurance were not included. <br /> <br />The method adopted for allocating joint nuclear reactor costs <br /> <br />follows the use-of- facility concept with use m2asured in terms of <br /> <br />available heat energy consum3d in each of the water and power <br /> <br />production processes. This approach permits both purposes to <br /> <br />share in the advantages of dual- purpose product ion. Other joint <br /> <br />costs resulting from the. use of a common site were proportionally <br /> <br />distributed on the basis of use. Inasmuch as the reactors, turbine- <br /> <br />g3nerators, ard the water plant require internal auxiliary electric <br /> <br />power, suballocations of electric power costs were made to each <br /> <br />plant a~count in accordance with the capacities required. <br /> <br />It is expected that the dual-purpose installation w,1uld <br /> <br />operate at full capacity as each stage is placed in service. <br /> <br />It is assumed that the plants would operate at an average annual <br /> <br />plant capacity factor of 90 percent. <br /> <br />29 <br /> <br />