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<br />GiJJJ3:' <br /> <br />ECONO~IC EV~LUATION PROCEDURES <br />PHASE II <br />CACHE LA POUDRE PROJECT STUDY <br /> <br />Introduction <br /> <br />The econoTiic evaluations to be performed in Phase II shall <br />be accomplished in accordance with the procedures specified <br />herein. Methodologies and assumptions different from those <br />specified in these procedures may be employed only if approved in <br />advance in writing by the Colorado Water Conservation Board. <br /> <br />Evaluation Criteria <br /> <br />Three evaluation criteria will be emploved for the <br />incremental analyses to be performed: <br /> <br />1. Benefit-cost ratio for conservation storage <br />purooses--the ratio of the present value of the total <br />monetary benefits of conservation storage purposes <br />(i.e., M&I uses, improved management, and supplemental <br />irrigation) less associated costs, to the present value <br />of the total separable monetary costs of the <br />conservation purposes. <br /> <br />This criterion provides a measure of the economic <br />attractiveness of the specified project purposes as <br />public investment options, without regard for the size <br />of the investment required, the availability of other <br />options, or possible budget constraints. <br /> <br />2. Break-even value of peaking power--the minimum peaking <br />power value (exoressed as a composite or energy and <br />capacity values) which would be required to make peaking <br />power benefits just equal to the separable costs of <br />peaking power for alternatives 2 and 7. The results <br />will be expressed in mills per kilowatt hour and dollars <br />per kilowatt year. <br /> <br />3. Benefit-cost ratio for run-of-river hydropower- the <br />ratio of the oresent value of the monetary benefits of <br />run-of-river power to the present value of the separable <br />monetary costs of run-of-river oower. <br /> <br />Evaluation Procedures <br /> <br />Alternatives 1, 2, 7 and 8, as formulated in Phase I, each <br />served four purooses: (1) hydropower production (peaking and <br />run-of-river power), (2) new storage space for municioal water <br />use, (3) develooment of new water supplies for supplemental <br /> <br />(over) <br /> <br />222 <br />jwm/eep <br />