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<br /> <br />~ <br />co <br />-.J <br />o <br /> <br />UNDERLYING POLICIES, GUIDELINES, AND ASSUMPTIONS <br /> <br />Augmentation of the Colorac:lo River through desalting of <br /> <br />'. <br /> <br />sea water, by increasing the basic water supply of the river, <br /> <br />would alter the river's hydrology. The water supply for the <br /> <br />Lower Basin, including the Central Adzona Project, would be <br /> <br />increased. The controversy over any responsibility for the <br /> <br />Upper Basin States to meet a portion of Mexican water deliveries <br /> <br />would be settled. Capital and annual costs would be involved, <br /> <br />and under Reclamation tradition, provision for return of the <br /> <br />reimbursable costs, with interest where appropriate, must be <br /> <br />made. As the initial desalting plants will not be required <br /> <br />until about 1990, projections of techniques for producing <br /> <br />nuclear power and desalting of sea water are required. These <br /> <br />aspects give rise to the requirement, for study and report <br /> <br />purposes, to estab lish guidelines, polici'es, and assumptions. <br /> <br />The basic and important ones adopted are discussed in <br /> <br />following paragraphs under the three broad headings of <br /> <br />"Central Arizona Project," "Hydrology," and "Financia1." <br /> <br />Central Arizona Project <br /> <br />The Central Arizona Project (CAP) would be a separate <br /> <br />entity, financially self-contained, essentially as described <br /> <br />in the'Bureau of Reclamation's "Summary Report--Central Arizona <br /> <br />Project with Federal Prepayment Power Arrangements" dated <br /> <br />February 1967. It is assumed that after payout of project costs, <br /> <br />4 <br />