Laserfiche WebLink
Animas -La Plata Water Marketing Supply and Demand Study <br />Section 2 <br />other alternatives than those listed below, but the study resources limited the number of alternatives <br />that could be explored within this study. <br />Alternatives for payment for the annual Fixed OM &R costs include: <br />Fixed OM &R Alternative I State assumes full responsibility for payment of fixed OM &R costs: <br />There are two variations for the State assuming full responsibility of Fixed OM &R costs which <br />include the State seeking an annual appropriation to pay the Fixed OM &R costs less amounts that <br />would be billed to entities using a portion of the State's allocation, either sold or leased to them. <br />Table 2.5 illustrates potential OM &R costs based on amount of water purchased. <br />Table 2.5. State of Colorado Purchase, <br />Amount Purchased <br />Annual Fixed OM&R and Variable Costs <br />Annual Fixed OM &R Cost <br />Variable Cost <br />AF <br />Capital Cost <br />($ 3475 /AF) <br />For Amount Purchased <br />(%of Total Projecy <br />At Start Up <br />$610,000. <br />(%•$610,000) <br />Full Operation <br />$680,000. <br />( %'$680,000) <br />Pump Amount Purchased <br />($18 /AF) <br />1,560 (IGA Minimum) <br />$5,421,547 <br />1.6% <br />$9,760 <br />$10,880 <br />$28,080 <br />2,000 <br />$6,950,701 <br />2.0% <br />$12,247 <br />$13,652 <br />$36,000 <br />3,120 <br />$10,843,093 <br />3.1% <br />$19,105 <br />$21,297 <br />$56,160 <br />3,180 <br />$11,051,614 <br />3.2% <br />$19,472 <br />$21,707 <br />$57,240 <br />3,400 <br />$11,816,191 <br />3.4% <br />$20,819 <br />$23,208 <br />$61,200 <br />3,453 <br />$12,000,385 <br />3.5% <br />$21,144 <br />$23,570 <br />$62,154 <br />10,460 <br />$36,352,165 <br />10.5% <br />$64,050 <br />$71,400 <br />$188,280 <br />The second variation to this alternative is to have the State establish a permanent escrow account <br />sufficient to generate the required revenues on an annual basis to pay the Fixed OM &R costs less <br />amounts billed to entities using a portion of the State's allocation. The size of the corpus in the <br />escrow account will depend on the rate of return obtainable. Table 2.6 illustrates how much <br />income will be accrued at various interest rates. Note that Fixed and Variable OM &R Costs should <br />be considered separately as pumping may not be required every year and the Variable OM &R Fund <br />may cover any Variable OM &R costs. <br />Table 2.6. Potential Accrual Incomes of <br />Annual Interest Rate Starting Fund Amount <br />N ($) <br />an OM&R Escrow Fund <br />Annual Income <br />($) <br />2.0 <br />$2,400,000 <br />$48,000 <br />$1,200,600 <br />$24,000 <br />$1,150,000 <br />$23,000 <br />3.01 <br />$3,000,000 <br />$90,000 <br />$2,400,000 <br />$72,000 <br />$1,200,000 <br />$36,000 <br />$1,150,000 <br />$34,500 <br />$1,000,000 <br />$30,000 <br />$800,000 <br />$24,000 <br />2 -13 <br />FINAL ALP Report_1_13_11_LL.Docx <br />