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<br />305 <br /> <br />Shaw explained and then left for our detailed examination. <br /> <br />All computations as well as the methods by which the itemized cost <br />estimates were derived 'have been carefully and independently checked. <br />From the basic data and assumptions submitted the estimates appear <br />to 'be reasonable and the results logical. <br /> <br />I <br /> <br />The general plan for this revision of the Curecanti Storage and Power <br />Project have already been independently conceived and discussed in <br />this office and this opportunity to examine it in detail was there- <br />fore very much appreciated. <br /> <br />It should be pointed out that a large saving in cost is made in -the <br />proposed method of disposing of paHer by transmission to a Reclamation <br />Bureau line at Gunnison and a Private Company line at Grand Junction. <br />This is evidently on the assumption that there is enough reserve capa- <br />city in these lines to carry the excess of power above that which <br />would be absorbed locally. If this assumption is correct the saving <br />in power cost would be approximately as indicated. <br /> <br />Other items contributing much more to the favorable benefit-cost ratio <br />are the costs allocated to benefits other than power. If for any rea- <br />son these items are not allowed but the revised cost of transmission is, <br />then the benefit-cost ratio would be reduced to approximately 1.10. <br />Without these.major reductions in the costs charged to power, the ratio <br />of benefits -to costs would become unfavorable. <br /> <br />The Gunnison River Project Reconnaissance Report shows three or four <br />irrigation projects in this basin which might be designed to benefit <br />by Curecanti .Project storage to proVide replacement water and additional <br />supplies for late season irrigation. The benefit-cost ratio of 1.526 <br />computed in the report we have reviewed therefore is believed to be rea- <br />sonable if not too low. <br /> <br />In maJdng this report as a cooperative service by the Upper Colorado <br />River Commission Engineering Department it must be understOOd that any <br />statement or conclusion herein is the personal judgement or opinion of <br />the staff and can in no way bind the Commission nor can this communi- <br />cation be considered as reflecting either the opinions of its members <br />individually or as a body. <br /> <br />Very truly yours, <br /> <br />Mr. George Cory <br />c/o Shirley-Savoy Hotel <br />Denver, Colorado <br /> <br />/s/ R. D. Goodrich <br />Chief Engineer <br /> <br />I <br /> <br />Copy to: Mr. F. M. Peterson <br />Delta, Colorado <br />