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<br />. <br /> <br />. <br /> <br />Water Proiect Development Assistance Component <br /> <br />1. This component would commence at 6 mills per kwh applied to <br />total-actual (bus bar) CRSP energy generation. This mill rate <br />would be indexed annually for the 40 year term of the agreement. <br />The states are willing to consider either a fixed annual index <br />or a floating index tied to an appropriate construction cost <br />indicator such as the Engineering News Record index. <br /> <br />2. Degradation of the power reSource <br /> <br />a. This component of the rate would be adjusted any time <br />there was a degradation (or subsequent restoration) of the <br />power resource at Glen Canyon Dam. Such adjustments would <br />be made in accordance with a pre-determined and agreed upon <br />scale or table relating changes in this rate component to <br />changes in minimum flow requirements at Glen Canyon Dam. <br /> <br />b. The principle upon which this degradation adjustment is <br />to be based is that each increment of degradation in the <br />value of the power resource will be shared by the states <br />and the power customers. <br /> <br />3. Distribution of revenues from this rate component <br /> <br />a. Revenues from this rate component would be paid <br />quarterly into an escrow account for each state for the <br />period that the power resource is available to CREDA's <br />members (i.e.. 40 years). funds could not be expended by a <br />state from an escrow account until the conditions specified <br />in 5 below were met. Earnings on the investment of funds <br />in an escrow account would ~ccrue to the ~ccount for use <br />pursuant to the agreement. <br /> <br />b. The details of escrow account conditions and the <br />selection and responsibilities of an escrow agent(s) will <br />have to be agreed upon. <br /> <br />c. See attachment A for the distribution of revenues among <br />the states. <br /> <br />4. Use of monies from the escrow accounts <br /> <br />a. Monies from an escrow account would be available for <br />the construction of new water resources projects and <br />facilities (including the Bonneville Unit I&D system and <br />phase 2 facilities of the Animas-La Plata Project) and for <br />the repair and rehabilitation. and enlargement. of existing <br />water resources projects. facilities. and systems. be they <br />CRSP participating projects or other projects. which <br />develop the waters of the Colorado River system apportioned <br />to the Upper Division States by the Colorado River and <br />Upper Colorado River Basin Compacts. Any kind of water <br /> <br />-3- <br />