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<br />irrigation the cost of a reservoir slightly smaller than Elephant <br />Butte plus the existing cost of all irrigation features, exclusive of <br />storage. Under the priority-of-use method, the total cost of Elephant <br />Butte Reservoir was charged to irrigation since power is incidental <br />and secondary in priority to the use of water for irrigation. The <br />average of the two methods resulted in an allocation of joint costs of <br />20.8 percent to power and 79.2 percent to irrigation. <br /> <br />Beginning in FY 1984 the allocation of joint costs was changed <br />because the water users completed the repayment of their construction <br />costs contract. Power still has the responsibility to repay 20.8 <br />percent of the costs of the Elephant Butte Dam and Reservoir, 100 <br />percent of the Elephant Butte Powerplant and related facilities, but <br />only 40.45 percent of the Caballo Dam and Reservoir. <br /> <br />2. Interest Rates. The interest rate applied to power <br />investments, replacements, and to deficits incurred through FY 1970 <br />was 3 percent. For project investments, replacements, and deficits <br />after FY 1970, the interest rates used were the current rates as <br />required by DOE Order RA-6120.2 and previous Interior Department <br />guidelines as follows: <br /> <br />FY <br /> <br />1971 <br />1972 <br />1973 <br />1974 <br />1975 <br />1976 <br />1977 <br />1978 <br />1979 <br />1980 <br />1981 <br />1982 <br />1983 <br />1984 <br />1985 <br />1986 and thereafter <br /> <br />Interest R.ate (percent) <br /> <br />5.375 <br />5.875 <br />5.5 <br />5.625 <br />6.125 <br />6.625 <br />7.0 <br />7.0 <br />7.5 <br />8.0 <br />8.5 <br />9.0 <br />9.5 <br />10.75 <br />12.375 <br />11.375 <br /> <br />3. Power Investments. The RGP investment reached a high <br />of $10,631,727 before the sale of the transmission lines and <br />substations. The power investment in service as of the end of FY 1985 <br />was $5,819,141 as shown in column 18 of the PRS (Table 2), and is <br />expected to increase to $7,205.091 by FY 1990. Of this amount, the <br />original investment of $2,827,468 has to be repaid by FY 1990. <br /> <br />15 <br />