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<br />1. SUMMARY <br /> <br />Western Area Power Administration (Western) is distributing this brochure to <br />provide information on the proposed adjustment of Colorado River Storage <br />Project (CRSP) transmission rates. An informal public meeting will be held to <br />provide additional information and to hear from interested persons. After a <br />consultation and comment period and review of oral and written comments, the <br />Deputy Secretary will announce a rate decision. If the decision is to adjust <br />rates, the new rates will be placed in effect on an interim basis, and will be <br />submitted to the Federal Energy Regulatory Commission (FERC) for a final <br />decision. <br /> <br />Authorization of the CRSP on April 11, 1956 by Publ ic Law 84-485 (43 U.S.C. <br />Section 620-620.0) initiated the comprehensive development of water resources <br />of the Upper Colorado Ri ver Bas in. Power was authori zed "as an i nci dent" to <br />other project purposes, and an electric transmission system has been <br />constructed to deliver the Federal power capability of over 1600 MW. <br /> <br />Transmission rates studies are used to determine what rates should be charged <br />for use of the CRSP transmission system by other utilities. The 1985 study <br />shows that increasing costs from system additions make a rate increase <br />necessary. The historical as well as the present and proposed transmission <br />rates are as follows: <br /> <br />FY 1965 <br />FY 1974 <br />FY 1983 <br />FY 1986 <br /> <br />(Present Rates) <br />(Proposed Rates)** <br /> <br />Transmission <br />Firm <br />($/KW- YR) <br />~4.50 <br />$6.60 <br />$10.27 <br />$15.94 <br /> <br />Rates <br />Nonfi rm <br />(Mi lls/KWH) <br />1 mlll <br />1 mill <br />2 mi 11 s <br />3.1 mills <br /> <br />**If feasible, actual FY 1985 costs and revenues will be substituted for <br />estimates in the FY 1985 study. This may modify the proposed rates <br />slightly. A copy of any revisions in the FY 1985 studies will be supplied <br />to interested parties as soon as they are available. <br /> <br />The effective date for the proposed new rates is expected to be January 1 , <br />1986. <br /> <br />II. RATE ADJUSTMENT PROCEDURE <br /> <br />A. Announcement of Proposed Rates and Consultation and Comment Period. <br />On November 20, 1984, an advance announcement was made at a CRSP customer <br />meeting in Salt Lake City, Utah, that a power rate adjustment was being <br />considered, and that a preliminary study indicated the firm transmission rate <br />would need to be increased from the present rate of $10.27 to about $18.50 per <br />kW per year. Western's commitment to hold informal customer meetings for CRSP <br />rate adjustments prior to initiating formal rate adjustment procedures applies <br />