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7.0 FINANCIAL FEASIBILITY ANALYSIS <br /> 7.1. LOAN AMOUNT AND FINANCING SOURCES <br /> As documented in Appendix D, opinion of total cost for the preferred alternative, Alternative <br /> 4 for the Overshot Gate is $400,000. PSCo will pay for its pro-rata share of the project cost, <br /> estimated at approximately $320,000 and leaving $80,000 to be split between the LACC,and <br /> CECC shareholders. The estimated annual payment associated with a Colorado Water <br /> Conservation Board (CWCB) loan at 2.00 percent interest over a 30-year repayment period <br /> is $3,572. <br /> 7.2. FINANCIAL PROJECTIONS <br /> A financial plan has been prepared to show the projected revenues and expenses of LACC <br /> and demonstrate the ability of LACC to fund this reconstruction project and to repay the loan <br /> sought from the CWCB. The financial plan is included in Appendix E. Revenues required to <br /> fund the annual loan payment will include a modest increase in annual operation shares and <br /> a special assessment of the non-PSCo shareholders of $29.28 per share for LACC <br /> shareholders and $4.36 per share for CECC shareholders, which will be assessed <br /> throughout the 30-year life of the loan. <br /> 7.3. COLLATERAL <br /> The Companies receive assessments from its stockholders and intends to pledge the <br /> assessments as collateral to assure repayment of the CWCB loan. <br /> 7.4. CREDITWORTHINESS <br /> LACC is in considered to be in a strong financial condition and has no long term debt <br /> outstanding. LACC and CECC have an outstanding loan with CWCB for the diversion dam <br /> constructed in 2010. <br /> September 2014 Draft <br /> Page 118 <br />