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<br />e <br /> <br />e <br /> <br />..; <br /> <br />V. Costs and Benefits of Weather Modification <br /> <br />The costs and benefits of weather modification change from the demonstration <br />phase when related tests and studies are being done to confirm the technology <br />to the time when maximum water production is underway and extensive testing is <br />no longer required. During the demonstration phase costs will depend on the <br />option chosen, but will average between $6 and $9 million per year for tests <br />in just two subbasins. Benefits from the demonstration program include a proven <br />technology anp an estimated 200,000 acre-feet of water produced annually for a <br />5-year period valued at $8.4 million per year. <br /> <br />Costs for an operational program will vary between $11 and $15 million per year <br />depending upon the final decision regarding ground seeding or aircraft seeding <br />and the continuing requirements for monitoring. <br /> <br />" <br /> <br />Partial economic benefits were determined in 1981 using the conservative estimate <br />for water supply increases of 1,315,000 acre-feet with the Upper Basin as input <br />to the Bureau.s Colorado River Simulation System model.. The results of the <br />analysis indicated that precipitation augmentation would produce estimated econo- <br />mic benefits totaling at least $80 million annually (1981 dollars) from the <br />following sources: $29 million from increased hydroelectric capacity and power <br />generation based on coal replacement cost of 20 mills per kilowatt-hour, $41 <br />million from salinity reduction using an average value of $450,000 for each milli- <br />gram per liter reduction in dissolved solids at Imperial Dam, and $10.5 million <br />from water supplies to reduce deficits and for new uses. <br /> <br />Additional benefits would be realized from the increased water supply in the <br />Lower Basin from seeding in the Mogollon Rim area in Arizona and New Mexico <br />and from ~dditional water supplies produced in adjacent basins. For planning <br />purposes an estimated value of $50 per acre-foot was used for the 298,000 acre- <br />feet of augmentation from the Mogollon Rim and $25 per acre-foot for the <br />533,000 acre-feet of increase in the adjacent basins. Therefore, total benefits <br />are assumed to be $109 million annually. It is estimated that the entire cost <br />of an 8-year demonstration program is less than the benefits from one year of <br />basinwide operations. <br /> <br />.~ <br /> <br />-7- <br />