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Rev. V 8 8-69 work done in each year, including the test sections planned for the first two years, to become plant -in- service at the end of the same year. It is planned that Recreation Facilities will be constructed concurrently with the Dam, Spillway and Outlet Works and all will become plant -in- service at the end of the second year. Computation of interest during construction is based on the construction schedule shown in Table VII -F and is shown in Table VII -A. Interest during construction is introduced as a component of the capital cost of the project for allocation purposes and has no rela- tionship to interest to be charged on any loan to the Company. Table VII -A also shows the computation of interest during construction with a project purpose omitted. The difference between the interest during construction for the multi- purpose project and for one with a function omitted is the separable cost used in cost allocation procedures shown in Table VII -C. In this particular case the single purpose alternate would be the same as the multi- purpose project with the other function omitted. 3. Operation, Maintenance & Replacement Expense The annual OM &R expense for the dam and for the collection ditch is not expected to change as a result of the project. Elsewhere in this Report it was estimated that average future OM &R costs of the Grand River Ditch and Long Draw Reservoir will be $25,250 annually. The collection ditch rehabilitation portion of the project is being designed for the purpose of reducing seepage and other losses, rather than for any specific reduction in OM &R expense. It is expected that any reduction in expense that might tend to accrue as a result of general improvement of the ditch would be offset by (1) the effort needed to maintain the banks of the ditch in better condition in order to contain the increased flow which the ditch will be required to handle, (2) the need to use more care and more sophisticated equipment, than in the past, in cleaning the newly lined reaches of the ditch, in order to avoid damaging the new ditch lining, and (3) extra work in getting the ditch open earlier in the season. The establishment of Recreational Facilities is estimated by the Forest Service to incur the following new annual OM &R costs: (1) Personnel services for increased fire protection and general administration: 2 men @ 60 days /year @ $25 /day /man $3,000 (2) Maintenance and policing of recreation areas: 33,000 visits @ $0.10 3,300 (3) Annual repair: 85 units @ $25 /unit 2 (4) Annual maintenance of boat ramp & miscellaneous 500 Total $8,925 The present worth of these annual expenditures for 100 years at 4 -5/8% is $190,900.