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<br />. <br /> <br />While regional officials concurred there was adequate lead time to incorporate <br />current cost data in the PRS, they stated that regional poticy restricted them to <br />using officially published data, and that data in the 22nd Annual Report on CRSP <br />, was not available in time for incorporation in the PRS. We believe that this policy <br />should be reconsidered so that future PR5 s reflect the most current data available <br />at the time. <br /> <br />Even with the questions on cost data raised by OIG, the proposed power rate <br /> <br /> <br />increases will still generate a substantial overall surplus after repayment of <br /> <br /> <br />participating project costs. In view of this result, coupled with the 70 year period <br /> <br /> <br />during which investment costs are to be recovered and the relatively negligible <br /> <br /> <br />short-range financial impact, it appears that subject to the question raised on <br /> <br /> <br />apportioning storage project revenues, repayment of Federal investment costs is <br /> <br />reasonably assured if the adequate power rate increases are implemented and <br /> <br /> <br />maintained. <br /> <br />Recommendations <br /> <br />We recommend (1) that policies for forecasting costs be reviewed and changed as <br />appropriate to ensure that costs projected in future PRS's are based on the most <br />current available data, and (2) that the interest rate policy on CRSP be reviewed <br />by the Office of the Solicitor to ensure such policy is in keeping with the intent and <br />objectives of 5.0. 2929. <br /> <br />21> <br />