ALP 13

This NRCS website, "Rate for Federal Water Projects," says the Treasury's annual certification of the interest rate for
2011 for federal water projects is 4.125 %. A table lists the annual rates going back to 1957.
4) A different federal website called "Treasury Direct" lists the certified annual rates by agency.
http : / /www.treasurydirect.gov /govt /rates /tcir /tcir fy2011 opdirannual.htm #table5. "Table 5- Bureau of
Reclamation" gives the FY 2011 rates for all BOR projects, pasted below. They vary depending on the
authorizing statute. The closest category for the A -LP Project is the second, referencing the Colo River Storage
Projects, which is the highest percentage rate, at 6.08 %. However, the 2000 Amendments reference only the
1956 Act, not the 1958 or 1965 Acts, so maybe you could argue that one of the lower rates should apply. (I
realize this is weak; I think A -LP is specifically mentioned in the Colo River Storage Project Act...)
Table 5 - Bureau of Reclamation
(Updated October 6, 20 10)
The following are the applicable rates for the fiscal year 2011 for computing interest on funds advanced for various Bureau of Reclamation activities.
Reclamation Rate
Activities
18 CFR 704.39 as required by Section 80(a), Public Law 93 -251 (88 Stat.34), Section 704.39(a) of the Water Resources Council's Rule and
Regulations (interest rate to be used for plan formation and evaluation); the unconstrained yield used for power repayment is 4.1620 %. 4 -1/8%
This rate does not include any adjustment that may be needed to show the maximum rate change of 1/4 of one percent per year.
Section 301(b) of the Water Supply Act of 1958, Public Law 85 -500, approved July 3, 1958, and Section 9 of Public Law 86 -529, approved
June 27, 1960, which amended Section 5(0 of Public Law 485, approved April 11, 1965, relating to the Colorado River Storage Project and 6.081%
participating projects (70 Stat. 109).
Section 202(3)(c) and Section 205(a)(3) of the Reclamation Reform Act of 1982 (Public Law 97 -293, Title II). 3.388%
Public Law 98 -569, (99 Stat. 2938), Section 205(4)(iv), approved October 30, 1984. Colorado River Basin Salinity Control Act. 3 -3/4%
Section 104(a)(5) of the Hoover Dam Power of 1984 (43 U.S.C. 619).
3.7852%
Public Law 99 -546 requires a separate rate for the Central Valley Project (Public Law 99 -546, Section 106). 3 -3/4%
Public Law 95 -578, The Reclamation Safety of Dams Act of 1978, and Public Law 98 -404, The Reclamation of Dams Act Amendments of
1984.
5) The Preliminary Project Cost Allocation in the A -LP Project's FSEIS, at Section 1.3, projected a 6 & 5/8 % IDC rate
as of 1998. That was based on the average interest rate payable to the Treasury for all outstanding marketable
U.S. securities which have terms of 15 or more years remaining to maturity (hey — this matches the Power
formula in FIN 06 -30 above) as of 1998. The next sentence says "IDC is converted to the appropriate repayment
rate for computing the repayment obligation. The actual repayment rate will be determined when construction
is initiated."
6) http: / /www.usbr.gov /uc/ envdocs /eis /navgallup /FEIS /vol2 /Appdx -C /Appdx- D- pt3.Pdf
The Navajo - Gallup IDC was projected at 4.75% as of 2007, using that Power formula, and the rate should only have
gone down further since then.
I am attaching SJWC's revised repayment contract, and note that their lawyer Liz Taylor would be a good co- consipirator
for keeping IDC down b/c she already negotiated their revised repayment contract and it looks as if the SJWC will have
to pay the same rate Colo does for IDC on any construction costs beyond the $6 million they already paid.
I hope this is helpful. I chatted with Casey about it so will copy her too.
Regards,
-Eve