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<br />estimating annual revenues. In estimating the capacity available for <br />commercial sales, CRSP capacity has been reserved for project gravity <br />pumping up to the maximum seasonal peaks shown on Table 5. Capacity sales <br />on Table 5 exclude powerplant visitor center use and Government camp use. <br /> <br />B. Power Revenues. The gross annual power revenues shown on <br />Table 2, reach a peak of $81,697,000 in FY 1990, the year in which the major <br />portion of the Central Utah Project capacity is estimated to be placed in <br />service. Historically, the revenues are from firm energy and capacity <br />sales; nonfirm energy sales; fuel replacement sales; reimbursement for <br />Hoover deficiency purchases; wheeling for others; rental of transmission <br />facilities to others; and miscellaneous uses. Future revenues are estimated <br />by category on Table 6. A discussion of the revenue sources included on <br />Table 6'follows. <br /> <br /> <br />). Project Use. Estimated revenues from project use of <br />$24,000 are for sales at the storage unit dams and reservoirs for visitor <br />centers and Government camps. The 6-mill rate assumed for project use sales <br />is inconsequential to the repayment study, inasmuch as the revenues are <br />offset by equal costs included in the annual O&M expenses. <br /> <br />2. Firm Ener~y. Revenues for firm energy include revenues <br />from the energy portion of flrm power sales and the revenues for energy <br />supplied for pumping on the participating projects, used for salinity <br />control, and supplied to the RGP for firming. The same rate applies to <br />these sales. Estimated firm energy sales through March 1983 are based on <br />the existing rate of 4 mills. Thereafter, the proposed rate of 5 mills was <br />used. <br /> <br />3. Capacity. Revenues for capacity include the revenue <br />component of the firm power sales, and the revenues from capacity supplied <br />for pumping on the participating projects, for salinity control works, and <br />,for firming RGP capacity; The capacity revenues shown on Table 6 were <br />obtained by applying the capaCity rate to the annual average capacity shown <br />in the last column of Table 5. Through March 1983, the existing rate of <br />$19.86 per kW-year was applied. Thereafter, the proposed rate of $25.80 per <br />kW-year was used. <br />4. Reimbursement for Hoover Oeficienc~ Purchases. Public <br />Law 90-537 provides that the Lower Colorado Rlver Basln funds shall be used <br />to reimburse the CRSP for purchases of energy needed to replace energy <br />generation lost at the Hoover Powerplant due.to storage of water in CRSP <br />reservoirs. Boulder Canyon Project has been paying $500,000 annually since <br />FY 1970 and will continue this level of payment through FY 1987. Boulder <br />Canyon Project must complete the reimbursement in the same number of years <br />after 1987 that the deficiencies were incurred in. Since the deficiencies <br />were incurred in 18 years, reimbursement should be completed by FY 2005. It <br />was assumed that payments after FY 1987 would be in equal annual <br />installments of about $1,533,000. <br /> <br /> <br />5. Transmission Service Revenues. Western has firm <br />commitments for wheeling power and energy over the CRSP transmission system, <br />based on long-term contracts with Colorado-Ute Electric Association (Ute), <br />Salt River Project (SRP), and Navajo Tribal Utility Authority (NTUA), and <br /> <br />31 <br />