FLOOD03474 - Laserfiche WebLink

Home Browse Search

RATE OF REPAYMENT v..A.A $.AA.J 'I..A.A.A.A.A.A 'I..A.A.A.A.A.A Revenue applied on repayment of the Federal Investment totaled $10.4 mil. lion In fIscal year 1974. This brought total repayment through fiscal year 197410 $49.5 million which IS approxI- mately 7 percent of the completed plant In service and 2.5 percent 01 the $1.9 billion projected total reimbursable Federal Investment in the project. In additIon to the amount applied on reo payment. the project earned revenue suflicmnt to pay all operating and in. terest charges. Operating costs of units and partiCipating prOjects turned over to water conser'ilancy distncts fOr op- eratIOn were paid by the respective con. servancy districts. About one-thIrd of the projected lolal reimbursable fed. eral Investment was In service as of the end of tile year. About $9.9 mIllion or 95 percent of the repayment revenues received in flscaJ year 1974 came from the sale of power and was applied to repayment of the power Investment. About 7 percent of tile projected total power Investment has now been repaid. The $9.9 million 26 IS a 25 percent reduction In net reve. nue from fiscal year 1973_ The reduction was the result principally of purchaSing energy 10 meet contractual obligatIons when generation at Glen Canyon was temporarily cut back to comply With the fIlling cnleria in P.L. 90.537. Approximately $330.000 in repayment revenue came from muniCipal and in' dustrial water sales m fiscal year 1974, mostly from sales from the Glen Can. yon and NavajO Units, but also from four particlpatlllg projects. ThiS reve. nue totaled 10 percent above last year. M&J revenue was received from Glen Canyon and two 01 the participating projects for the first time. The $330" 000 was applied to repayment of the mUniCIpal and industrial water Invest. ment. Water users of seven partICIpating proj. ects paid approximately $240.000 for irrigation water Ser....,ce dUring the year. All of thiS revenue was applied to repay- ment on the investment which now to. tals about $185 million, but which is projected to grow to about $1 billion when all authOrIZed participating proj. ects are completed. In order to provide revenues suffiCIent to repay the projected reimbursable costs of authorized storage units and also to provide the needed repayment assIstance for authOrized participating projects within the time limits pre. SCribed by law. It WIll be necessary to make a second Increase in the CRSP power selling rate. The Increase reo qUired will place the selling rate about 8.5 percent above the current rate, which became effective April 1, 1974, and about 10.4 percent above the origi. nal rate which was in effect to April 1974. The Increase is reflected In Ex hlblt F. Reasons for the prOjected Increase are the InflatIonary rise In present and pro- rected power. system operatlrlg costs, es. tlmales 01 higher costs to complete con. struction of authorized units and par. tlcipatlng project faCilities, reduction III estimated power revenue income be- cause of prOjected acceleratIon of water depletlons. and the inclusion of future payment from power revenue of a par. tlon of the estimated construction and operatmg costs of speCified units of the Colorado River Salirllty Control Program (P.l. 93320-88 Stal. 266). Projections uSing current estimates of CRSP costs. construction schedules and Increased net Income from power and water sales. ad valorem taxes and miscellaneous revenue, show that pay. out of the reimbursable costs of the au. thomed Colorado River Storage Proj ect and Participating Projects can be accomplished Within authorized repay. ment periods (Exhibit F).