PROJ00239

• Contract/PO #: FS0035X
• Contractor Name: Juniper Project USBR 1963
• Contract Type: Miscellaneous
• Water District: 0
• County: Moffat
• Loan Projects - Doc Type: Feasibility Study

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CHAPTER II

COMPREHENSIVE PLAN

Annual Equivalent Costs

Average annual e~uivalent costs of the Juniper project are estimated
at $5,828,000 over a 100-year period of analysis. These costs include the
construction costs and interest during construction at 2 7/8 percent, both
amortized over a 100-year period at 2 7/8 percent interest; annual opera-
tion, maintenance, and replacement costs; and the assigned costs of regula-
tory facilities of the Colorado River Storage project figured at $2 for
each acre-foot of annual stream depletion. caused by the Juniper project,
Derivation of the annual equivalent costs i~ shown below.

Project construction cost
Interest during construction
Total capital investment
Annual e~uivalent of capital investment
Annual operation, maintenance, and replacement costs
Annual cost of Colorado River Storage project
Total annual e~uiva1ent cost

$145,564,000
12.445.000
158,009,000
4.826,000
532,000
470.000
5,828,000

Benefit-Cost Ratio and Net Benefits

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The annual direct benefits for the comprehensive plan as discussed in
this report compare with the total annual e~uivalent costs in a ratio of
0,92:1 with the annual benefits being $462,000 less than the average annual
costs. Total benefits of the project, including direct, indirect, and pub-
lic irrigation benefits, compare with the total annual costs in a ratio of
1.54:1 with the benefits exceeding the costs by $3,138,000 annually. The
relationship of benefits and costs may be less favorable than presently
indicated with reductions in the acreages of arable lands expected to result
from detailed land classification and drainage studies.

Cost allocations

Preliminary allocations of project costs were made by the alternative
justifiable expenditure method to irrigation, power, recreation, and fish
and wildlife, The costs allocated include project construction costs;
interest during construction at 2 7/8 percent; operation, maintenance, and
replacement costs; and taxes foregone because of the Federal rather than a
private power development,

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The alternative justifiable expenditure method of allocation limits
the ~location to any project purpose to not more tha~thejustifiable
expeiditure for the purpose. The justifiable expenditure is the lesser of
either the project benefits from serving the purpose or the cost of secur-
ing the same benefits through the most likely alternative means, From the
justifiable expenditure for each purpose are deducted specific costs which
are the costs of facilities serving only that purpose. Costs of project
facilities serving more than one purpose, or the project joint costs, are
then distributed among the project purposes in the proportion that the

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