Laserfiche WebLink
<br />A power repayment study is an annual assessment of the <br />financial status of the project to determine if existing rates <br />for power are sufficient to meet repayment criteria. The <br />repayment criteria requires that annual expenses must be <br />recovered each year and that project investment cost must <br />be repaid within specific time periods. The annual expenses <br />are comprised of operation and maintenance costs, purchased <br />energy (Ed. To meet contracts for firm power in the event <br />hydrologic conditions do not permit sufficient hydropower to <br />be produced), interest expense and required payments to <br />several smaller projects which have been integrated into the <br />Pick-Sloan Missouri Basin Program . . . for operational and <br />repayment purposes. Investments include the costs allocated <br />to power, as weJI as those costs associated with irrigation <br />projects beyond the irrigator's ability to repay. If revenues <br />are not sufficient to meet payout for a given repayment <br />study, the firm power rate is adjusted until payout is <br />obtained. <br /> <br />. . .. There is considerable irrigation yet to be developed <br />in the Pick-Sloan Missouri Basin Program to arrive at the <br />"ultimate development" level. Irrigation aid costs (Ed. Power <br />revenues needed to repay existing and future irrigation <br />development cost above the irrigator's ability to repay) <br />associated with the ultimate development of irrigation are <br />included in the repayment studies. However, because of the <br />60-year repayment period for irrigation projects (Ed. The 10- <br />year development period plus the 50-year repayment period), <br />the cost of those projects which are scheduled after the 40th <br />year of a study do not impact the power rate (MBSA, 1983, <br />pp. 47-48) (Ed. Since irrigation aid payments are typically <br />not made until close to the end of the repayment period). <br /> <br />Mr. Davies graphically illustrated the power repayment study concept as shown <br />in Figure I. <br /> <br />-4- <br />