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<br />annual load factor of 58.2 percent to the firm transmission rate of $15.94 per <br />kW-year. Both rates should become effective January 1, 1986, or as soon <br />thereafter as possible, where existing contracts do not permit changes by then. <br /> <br />VI. SUPPORTING EXPENSE DATA <br /> <br />1. Operation and Maintenance. These expenses are comprised of all <br />the O&M for switchyards, substations and transmission lines for which CRSP is <br />responsible. Also included as an O&M expense is moveable equipment which must <br />be replaced regularly. Estimates of O&M expenses for the study period have <br />been taken from the FY 1985 CRSP budget. Comparison of previous budgets to <br />actual expenses shows that these budgets have been very accurate in projecting <br />expenditures. O&M expenses used in the study are as follows: <br /> <br />1986 <br />1987 <br />1988 <br /> <br />$7,636,894 <br />$8, 1 64, 1 60 <br />$8,691,427 <br /> <br />2. Wheeling and Other Expenses. In lieu of building certain <br />transmission facilities, arrangements financially advantageous to the CRSP <br />were made to utilize transmission systems of various utilities. In Utah, CRSP <br />power is wheeled over the facilities of Utah Power and Light Company. CRSP <br />power was also wheeled by the CP National Corporation's system in Utah until <br />September 1981, when Utah Power and Light Company purchased the Corporation's <br />Utah facilities. In New Mexico, power is wheeled over the facilities of <br />Public Service Company of New Mexico. In Wyoming, power is wheeled over <br />facilities of the Bridger Valley Electric Association. Table 2 shows the <br />est imated future annual quant it i es, and costs for whee 1 i ng. It has been <br />assumed that the existing rates will continue without change throughout the <br />1986-2090 period. Wheeling costs were projected using contracted amounts and <br />rates for Delta Montrose, Plains G&T, and Public Service of New Mexico. For <br />Bridger Valley zero output and cost was projected from 1985 to 1989. After <br />1989 production was projected to be 23,000,000 kWh and payments to Bridger <br />Valley to be $17,000 per year. Quantities wheeled over Utah Power and Light <br />and the cost to Western was projected by using the historical period 1981 to <br />1984 as the basis for a straight line projection through 1990. Since the <br />capacity of the hypothetical All-Federal System in Utah has not yet been <br />established, the amount of wheeling available at the $4.20 KW-Yr rate has not <br />yet been determined. Consequently, our estimated costs over the UP&L System <br />may be understated. <br /> <br />3. Interest Rates. Section 5(f) of Public Law 84-485 (43 U.S.C. <br />Sect ion 620d rn) as amended is as foll ows: <br /> <br />"The interest rate applicable to each unit of the storage project and <br />each participating project for purposes of computing interest during <br />construction and interest on the unpaid balance shall be determined <br />by the Secretary of the Treasury, as of the beginning of the fiscal <br />year in which construction is initiated, on the basis of the computed <br />average interest rate payable by the Treasury upon its outstanding <br />marketable public obligations, which are neither due nor callable for <br />redemption for fifteen years from the date of issue." <br /> <br />8 <br />