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<br />The Interest rates of 2.875, 5.682, 6.063, 9.352, 10.051, 10.403, and 10.898 <br />percent have been used to amortize the CRSP transmission investment as shown <br />In Table 1. <br /> <br />4. Investment. As shown In Table 1, total Investment In <br />transmission Is expected to reach $357,540,618 by FY 1988. <br /> <br />A major addition of over $110,000,000 is the planned western Colorado <br />345 kV transmission system which includes Western's joint participation with <br />Ute and others in the construction of a new 345 kV transmission system from <br />Rifle to Four Corners, including modifications of existing substations between <br />Craig and Four Corners to accommodate the p1 anned 345 kV system. Other <br />facilities Include Western's share (22 percent) of the planned Hayden-Blue <br />River 230/345-kV line, a new control building and 230 kV and 345 kV swltchyard <br />improvements at Glen Canyon, improvements to Increase the transfer capacity of <br />the Glen Canyon-Flagstaff-Pinnacle Peak 345 kV line, and other miscellaneous <br />faci 1 !ties. <br /> <br />VII. ENVIRONMENTAL EVALUATION <br /> <br />In compliance with the National Environmental Policy Act (NEPA) of 1969 and <br />Department of Energy (DOE) regulations published in the Federal Register on <br />February 23, 1982 (47 FR 7976), Western will follow the process described <br />below In conducting environmental evaluations of proposed rate adjustments. <br /> <br />Section 0 of the DOE regulation states that, for rate increases for power <br />marketing administrations, the level of documentation under NEPA depends upon <br />the following criterion: <br /> <br />The size of the rate increase as it relates to the rate of Inflation <br />since the last rate increase. <br /> <br />Western will make a determination as to the size of the rate Increase. If it <br />does not exceed the rate of inflation in the period since the last rate <br />increase, no further documentation Is required. In such cases, a memorandum <br />would be prepared explaining the basis for an administrative determination of <br />no further need for documentation under NEPA. <br /> <br />If the rate increase exceeds the rate of inflation since the last rate <br />Increase, an environmental assessment (EA) is normally required. The EA would' <br />consider the impacts of the proposed rate increase and alternatives on the <br />envi ronment. <br /> <br />If the EA concludes that the rate Increase does significantly affect the <br />quality of the human environment, Western would proceed in preparing an <br />environmental Impact statement (EIS) and would conduct scoping activities to <br />further define environmental considerations. A draft EIS would be prepared, <br />followed by the final EIS which would set forth the final proposal and Its <br />related Impacts. <br /> <br />VIII. REGULATORY FLEXIBILITY ACT OF 1980 <br /> <br />Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C. Section 601 <br />et seq) each agency, when required by 5 U.S.C. 553 to publish a proposed rule, <br /> <br />10 <br />