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<br />POWER REPAYMENT STUDY <br /> <br />The basic project features described in the background section of this report (page <br />7l are required by P.L. 84-485 to be repaid to the extent specified therein. Specifi- <br />cally, power revenues must be sufficient to: (1) pay all operation, maintenance and <br />replacement costs allocated to power; (2) pay all operation, maintenance and <br />replacement costs of storage units allocated to irrigation; (3) repay with interest <br />within 50 years the capital investments allocated to power; (Ii-) repay without <br />interest within 50 years the irrigation investment of the storage units, except for <br />the portion repaid by M&:! water revenues; and (5) repay without interest within 50 <br />years plus development periods all irrigation investments of the participating <br />projects beyond the ability of the water users to repay and which are not repaid by <br />M&:! revenues. M&:I revenue repayment requirements parallel the power repayment <br />requirements specified above. Irrigation revenues must be sufficient to (1) pay all <br />operation, maintenance, and replacement costs allocated to the irrigation function <br />of the participating projects, and (2) repay without interest within 50 years, the <br />irrigation investment of the participating projects, within the ability of the water <br />users to repay. <br /> <br />The first repayment studies indicated the initial CRSP rate, which was established <br />in 1962, would be sufficient, based on the price level at that time, to pay the <br />project operating costs and to accomplish timely repayment of the reimbursable <br />investment costs. Annual repayment studies made after 1962 indicated no rate <br />adjustment was needed until FY 1972. This culminated in a rate increase of about <br />two percent in April 1974, and a later repayment study resulted in an additional <br />increase of seven percent, which was put into effect in June 1977. Based on data <br /> <br />21 <br />