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<br /> <br />REVENUE APPORTIONMENT <br /> <br />The Service determined in March 1979 that power rates proposed at that time <br /> <br /> <br />would be set at levels which would produce a surplus of $61/.8 million. Subsequently, <br /> <br />in September 1979, the Service made several corrections to its data and also <br /> <br />changed the method used to apportion storage project net revenues. As a result of <br />these changes, the Service determined that a lower power rate level was possible <br />and that the resulting net revenues would amount to $1/.11/. million, or $231/. million <br /> <br />less. <br /> <br />In our opinion, the September 1979 changes in methodology for the apportionment <br />of net revenues are contrary to the requirement of P.L. 84-1/.85. If so, proposed <br /> <br />power rates are inadequate to produce required revenues to repay the costs of <br /> <br />participating projects in Utah; and, with the exception of Utah, the surplus <br />amounts projected for Colorado, New Mexico, and Wyoming are substantially <br /> <br />understated. <br /> <br />Our analysis, as shown below, illustrates the effect the September 1979 changes <br /> <br /> <br />had on the surplus accounts of each state: <br /> <br /> Colorado New Mexico Wyoming Utah Total <br /> (000 Omitted) <br />Surplus based on <br />3/79 determinations $270,278 $193,04-3 $131f.,1f.28 $1,018 $61f.8,767 <br />Surplus based on <br />9/79 determinations 132,113 11/.1,981/. 14-0,336 391 411f.,824 <br />Decrease $138 , 165 $ 51,059 S 41/.,092 S 627 $233,94-3 <br />% of Decrease 59.06% 21. 82% 18.85% .27% 100.00% <br /> 16 <br />