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<br /> <br />. <br /> <br />CHAPTER II <br /> <br />COMPREHENSIVE PLAN <br /> <br />remalnlng justifiable expenditure for each purpose bears to the total of <br />the remaining justifiable expenditures, <br /> <br />Juniper project facilities which are used jointly by more than one <br />purpose include Juniper Dam and Reservoir, ~he section of Deadman Bench <br />Canal from Juniper Dam to Artesia Reservoir, and Artesia Dam and Reser- <br />voir, Juniper Dam and Reservoir would serve all project purposes, includ- <br />ing irrigation, power, fish and wildlife, and recreation. The section of <br />Deadman Bench Canal to Artesia Reservoir would be used jointly for irriga- <br />tion and to supply water to Artesia Reservoir for irrigation, recreation, <br />and fish and wildlife, The facilities serving only one purpose include <br />the powerplant, switchyards, and transmission system for power; the Dead- <br />man Bench Canal beyond Artesia Reservoir and the other canals, laterals, <br />and drainage systems for irrigation; and the basic public use facilities <br />at Juniper Reservoir for recreation, <br /> <br />. <br /> <br />Cost allocations to irrigation and power were limited by the costs of <br />the most economical single-purpose alternative means of providing e~uiva- <br />lent benefits. The single-purpose alternative considered for irrigation <br />was the Juniper project constructed to serve only irrigation, The cost of <br />the single-purpose alternative for power was taken as the weighted average <br />cost of obtaining power from private steam-electric plants, with estimated <br />costs including taxes foregone because of a Federal rather than private <br />power development, Costs allocated to recreation and fish and wildlife <br />were limited by the benefits to these purposes since costs of alternative <br />developments were estimated to be higher than the benefits. <br /> <br />In the procedure for allocating project costs, all annual benefits and <br />costs accruing over the 100-year analysis period were converted to present <br />worth amounts at 2 7/8 percent interest. <br /> <br />Derivation of the preliminary cost allocation is shown in the table <br />on the following page, <br /> <br />Repayment <br /> <br />. <br /> <br />Construction costs allocated to irrigation would be reimbursable on <br />an interest-free basis in accordance with reclamation law, The construc- <br />tion costs allocated to power, including interest during construction. <br />would be reimbursable with interest, An interest rate of 2.936 percent <br />has been used in this analysis but the actual rate would depend on the <br />rate applicable when project construction was undertaken, Both the irri- <br />gation and power construction cost allocations would be repayable over a <br />period of 50 years following completion of construction for power and <br />following completion of construction and a lO-year development periOd for <br />irrigation. The operation, maintenance. and replacement costs allocated <br />to irrigation and power would be paid annually from project revenues, the <br />irrigation portion directly by the irrigators and the power portion from <br />power revenues ~ <br /> <br />52 <br />