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<br />- <br /> <br />The demand charge is based on the <br />the seasonal contract rate of delivery. <br />price for unauthorized overruns will be <br />same multiplier as now in effect. <br /> <br />greater of the maximum demand or <br />For contract violations, the <br />10 times the above rates, the <br /> <br /> <br />present rate - and January 1977, the total costs to be paid by power <br />have increased by about $1228 million. Of this in~rease, 54 percent is <br />construction, 19 percent O&M, 16 percent wheeling, 8 percent firming <br />purchases, and 3 percent miscellaneous. The fiscal year 1977 repayment <br />study indicates that a power rate increase of about 38 percent (total <br />cost of 9.04 mills per kWh at 58.2 percent load factor) will be needed <br />by October 1979 to accomplish the repayment required by the project <br />authorizing act. <br /> <br />. <br /> <br />An analysis of cost classification (see Section VII) indicates <br />that revenue recovery from the sale of capacity and energy should be <br />given approximately equal weight. It should be noted that the first <br />rate established in 1962 was based on equal revenues from capacity and <br />energy sales at 58.2 percent load factor, based on a seasonal billing <br />demand. A low demand rate would probably benefit those customers who <br />purchase CRSP peaking capacity, but could be detrimental to project <br />irrigation pumpers. In consideration of striking a balance between <br />demand and energy cost recovery and in order to minimize discrimination <br />among types of power users, it is felt that the new power rate should <br />have the same apportionment as the original rate, resulting in a rate <br />of $1.93 per kW-month and 4.5 mills per kWh. <br /> <br />In order to encourage conservation and urge CRSP customers to <br />obtain supplemental power supplies, a rate sohedule was adopted in <br />April 1975 providing that CRSP power allocation overruns would have a <br />rate of 5 times the regular rate. The charge for unauthorized CRSP <br />overruns was increased to 10 times the regular rate in June 1977. It <br />is proposed that the new CRSP rate have the same provision. Also, the <br />policy will be continued that CRSP facilities will be used to the extent <br />possible to sell energy for fossil fuel conservation with emphasis on <br />such sales to CRSP preference customers. <br /> <br />The proposed rate will be called SP-Fl and will take the following <br /> <br />form: <br /> <br />Firm Power <br />Demand: $1.93 per kW-month (previously $1.34) <br />Energy: 4.5 mills per kWh (previously 3.4) <br /> <br />Peaking Power <br />Demand: $11.58 per kW-season (previously $8.04) <br /> <br />. <br /> <br />While the CRSP rates are established on the basis of project repay- <br />ment requirements, it is significant to note that wholesale rates <br /> <br />2 <br />