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<br />Partial economic benefits were determined by using the estimated <br />water supply increases from the Upper Colorado River Basin as <br />input to the CRSS model. Assuming that current Basin water <br />obligations would be met first, the results of the model indicated <br />that augmentation in the Upper Basin would produce an annual benefit <br />of $14.5 million from increased hydroelectric capacity and power <br />generation, and $31 million from salinity reduction. In addition, <br />water supplied to reduce deficits in Arizona and California would <br />have a value of $5.5 million. After meeting current obligations, <br />approximately 490 million m3 (400,000 acre-ft) would be available for <br />new uses at a value of $5 million. The total economic benefit <br />from these sources is conservatively estimated to be $55 million <br />annually, <br /> <br />Thest first estimates of potential benefit would provide a projected <br />benefit-cost ratio in the range of 6:1 to 10:1. Production costs <br />for an acre-foot of water range from $5 to $10. It must be emphasized <br />that the benefit estimates do not include water produced in the <br />adjoining states or the Mogollon region of the Lower Basin. Veri- <br />ficationof these benefit estimates during the San Juan operational <br />project will provide the basis for a Basinwide Colorado River <br />operational program. <br /> <br />. <br /> <br />VI-2 <br />