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3 . Power repayment studies <br /> A . Power preference customers (CREDA) have objected to <br /> WAPA's proposed rate increases. <br /> 1 ) Key issue is whether authorized projects not yet <br /> under construction are to be included in the <br /> calculation for rate increases. <br /> 2) CREDA does not want them included on the grounds that <br /> they increase power rates unnecessarily since some of <br /> the disputed projects (e.g . , San Miguel , West Divide, <br /> Savery-Pothook, and Fruitland Mesa in Colorado) may , <br /> CREDA alleges, never be built. <br /> 3 ) Colorado does not want such projects excluded from <br /> the rate calculations because that will give the <br /> appearance that they are not viable projects, is a <br /> contradiction of our contention that certain projects <br /> are to be built concurrently with the Central Arizona <br /> Project (CAP) , and could lead to future opposition by <br /> power users to appropriations for such projects since <br /> rate increases would then be specifically tied to an <br /> individual project's construction start. <br /> B. FERC reviews WAPA's proposed rate increases <br /> 1 ) FERC has recently ruled that projects not yet under <br /> construction can be included in the calculation of <br /> rate increases only if there is a showing that there <br /> is a "reasonable expectation" that a project will be <br /> constructed . <br /> 2) CREDA and WAPA are now trying to get BuRec and the <br /> Upper Basin states to join in an effort to define <br /> what "reasonable expectation" means. <br /> 4. Financing of CREST program <br /> A. History of issue covered in the attached June 1 , 1982 , <br /> memo to Members, CWCB, from Bill McDonald . <br /> B. Summary of major points <br /> 1 ) Sec . Watt wanted the entire program financed <br /> from power revenues. <br /> 2) The 7 basin states agreed that the program was a <br /> federal obligation and should be funded by <br /> Congressional appropriations. <br /> 3) In light of Watt 's position, however, the Lower Basin <br /> states proposed a 0 . 1 mill increase in both <br /> -2- <br />