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<br /> <br />construction obligation was repaid. Beginning in FY 1984 a new method <br />of calculating the proportion of O&M that should be paid by the water <br />users became effective. Power revenues wi 11 no longer be requi red to <br />pay the difference between the revenue at $.10 per acre foot and the <br />amount that should have been paid by the water users, and neither the <br />water users O&M expense or water revenues will be reflected in the <br />PRS. <br /> <br />4. Other Revenues. Historically, these are miscellaneous <br />revenues which have consisted of rental of electric property, sale of <br />land near the Caballo Dam, and other miscellaneous revenues which have <br />ranged from $13 to $114,563 annually. Since this amount varies <br />widely, future year projections were based on a 10-year average less <br />the rental of the substation which was sold in FY 1983. <br /> <br />O. Annual O&M and Other Expenses. For FY 1941 through FY <br />1963, column 4 of the PRS (Table 2) shows the total annual power and <br />irrigation O&M expenses. For FY 1964 through FY 1982, column 4 of the <br />PRS (Table 2) shows the annual power O&M expenses and column 6 shows <br />the irrigation O&M expenses assigned to power to repay. For FY 1983, <br />the estimate of O&M to be repaid from power revenues is included in <br />these columns with no attempt to allocate the O&M to a specific <br />source. However, it should be noted that FY 1983 included a <br />significant amount of nonrecurring or extraordinary O&M ($158,000). <br />For FY 1984 through FY 1985, the estimate of regular O&M to be repaid <br />from power revenues is included in column 4, and column 6 shows <br />Western expenses for transmi ssi on servi ce by others and other <br />miscellaneous expense. Beginning in FY 1984 irrigation O&M is no <br />longer included in the PRS. Also, beginning in FY 1984 extraordinary <br />O&M was capitalized. For the historic years, O&M reached a peak of <br />$1,128,826 in FY 1983. Projections have been made for future years <br />through 1990 and then held constant at the FY 1990 figure <br />thereafter. Table 4 is a tabulation of the annual O&M costs (which <br />includes O&M and other expenses) for the period FY 1981 through FY <br />1994, the rate setting year for the FY 1985 Final Revised PRS. As <br />noted in this table there are some fluctuations in the pattern of the <br />O&M expenses in the FY 1985 Final Revised PRS for FY 1981 through FY <br />1990. These fluctuations are explained in the table footnotes. <br /> <br />Some of the reasons for the $288,000 jump in O&M expense for FY <br />1985 and the projected O&M expense for the FY 1986 are as follows: <br />\ <br /> <br />1. FY 1985 O&M costs were lower than expected by about <br />$125,000 because this money was diverted to emergency <br />work. This means there is a backlog of O&M work to be <br />performed. <br /> <br />2. FY 1986 includes $75,000 for an independent audit and <br />crosswalk by an outside auditing firm. <br /> <br />12 <br /> <br />