BOARD01559

• Board Meeting Date: 2/17/1989
• Description: Meeting Notes & Memos
• Board Meetings - Doc Type: Meeting

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UPPER DIVISION STATES' PROPOSAL TO CREDA
February 10, 1989

Introduction

At the January 25, 1989. meeting of the states and CREDA,
the states orally presented their position on several issues
and agreed that they would commit their position to writing.
The purpose of this paper is to do that. This proposal
supersedes the oral presentation made on January 25th.

Assumptions

This proposal assumes that the contemplated changes in the
power rate, in its computation, and in the use of revenues
therefrom; in the contracts with Western; etc.; would require
federal implementing legislation and execution of contractual
documents among the parties, It further assumes an arrangement
commencing on January 1, 1991, and continuing for 40 years.

This proposal assumes that the Dolores Project. Dallas
Creek Project, phase 1 facilities of the Animas-La Plata
Project, and M&I facilities of. the Bonneville Unit will be
completed with Congressional appropriations per the 1956 CRSP
Act. It further assumes completion of CRSP storage unit and
participating project mitigation requirements (as heretofore
identified by Reclamation or as directed by Congress in the
federal implementing legislation which this proposal
contemplates) with section 8 appropriations per the 1956 CRSP
Act.

Components of the Power Rate

1. The power rate would consist of discretely defined
components, each one of which would be set separately. The
total power rate would be the sum of the components.

2. The components would be as tollows:

a. Annual operation, maintenance, and replacement

b. Repayment of costs allocated to power purposes for
investments in service on January I, 1991

c. Repayment of costs allocated to power purposes for
investments placed in service after January 1. 1991

d. Repayment of costs allocated to irrigation purposes
which are beyond the irrigators' ability to repay

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