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<br /> <br />engineering drawings, legal and financial placement <br />costs, and costs of negotiating utility sale and pur- <br />chase rates. The smaller the project, the larger the <br />proportion of fixed costs. <br /> <br />In addition, there are certain mInImUm equipment <br />costs regardless of the size of the project. For <br />example, even though a smaller site will require a <br />smaller turbine and generator, the cost for certain <br />electrical switch, gear and control devices will be the <br />same regardless of size. <br /> <br />Frequently, unusual costs arise in connection with <br />development, especially if it poses any special <br />environmental or other related problems as part of the <br />government approval process. For example the <br />installation of fish ladders or in-depth environmental <br />impact studies might be required prior to <br />development; or special methods of construction might <br />be imposed to preserve near-by structures of historical <br />or archeological significance. Such costs would lower <br />the value of the site. <br /> <br />On-going operating costs of a special nature would <br />also lower its value, as would high local property or <br />income taxes which might be levied on hydroelectric <br />development, or special insurance above that normally <br />required for hydroelectric projects. The smaller the <br />plant, the higher the costs for operations and <br />maintenance in proportion to gross revenues. Every <br />site requires some monitoring whether it is 400 kW or <br />2,400 kW. Yet the cost for monitoring is the same for <br />both projects, and each site will have the same cost <br />for billing, record keeping and other overhead <br />expenses. <br /> <br />12 <br />