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3. The Branch Chief position at the Elephant Butte powerplant, which had been vacant for an extended period, was filled at approximately $40,000 per year. 4. Beginning in FY 1986, the General Services Administration changed their policy on vehicle rental and Reclamation is now making projections for purchases of vehicles. Purchase of all moveable equipment is amortized over a 5-year period and charged to O&M (20 percent per year). This amounted to approximately $50,000 in FY 1986. 5. FY 1985 O&M costs for the Caballo Oam were lower than expected by about $52,000 because this money was diverted to emergency work. This work was again projected to be done in FY 1986 along with the hiring of an engineering ~echnician. Power has responsibility to pay 40.45 percent of the Caballo O&M, or $21,000. E. Energy and Capacity Purchases. From FY 1965 through. FY 1979, energy and capaclty for flrmlng RGP power were purchased from CRSP. However, since April 1979, no capacity firming charges have been incurred, and no capacity firming is projected through FY 1989. Energy firming was required in FY 1982, FY 1984, and FY 1985, but not in FY 1980, 1981, and 1983. Based on the current reservoir level and information from Reclamation operating personnel, no energy firming is projected for FY 1986 through FY 1989. For FY 1986 and thereafter no annual purchases of energy are projected for future years. F. Annual Replacement Costs. Prior to FY 1963, RGP used a replacement reserve accounting method. From FY 1963 through FY 1965, depreciation was computed using a straight-line method; and from FY 1966 through FY 1972, depreciation was computed using a compound-interest method. Beginning in FY 1973, future replacement costs were capitalized and added to the replacement account as shown in columns 15 through 17 of the PRS (Table 2). The replacement cost is added to the "allowable unpaid balance" of this account in the year the replacement goes into service and then subtracted out at the end of its estimated service life. The interest rate applied to replacements is the current interest rate determined in accordance with DOE Order RA-6120.2 and preceding Reclamation directives. Estimated replacement costs for FY 1986 through FY 1989 are based on the most current program budget documents. Estimated replacement costs thereafter are based on projections that assume service lives of facilities established in the August 1981 pUblication issued by Reclamation and Western entitled Replacements: Units, Service Lives, Factors and on investment costs in the various plant accounts indexed to the January 1985 price level. The accumulated cost of replacements in the FY 1985 Final Revised PRS at the end of FY 1994 (the rate setting year) is 13