PROJ00258 - Laserfiche WebLink

Home Browse Search

. CHAPTER III BASES FOR ANALYSES Interest during construction Interest during construction has been computed for plan formulation, cost allocation, and benefit-cost analyses at the rate of 5t percent. In repayment analyses the rate of 3.649 percent has been used. These two rates were applicable for the respective analyses in water resources plan- ning during fiscal year 1973 when the Basalt Project studies were essen- tially completed. The rates have been changing on an upward trend for several years. Operation, maintenance, and replacement costs The operation, maintenance, and replacement costs for all potential features were estimated by the Bureau of Reclamation on the basis of 1970-72 prices. The estimates include costs of personnel, equipment materials, supplies, and replacements. It was assumed that power re- quired for project pumping would be available from the Colorado River Storage Project at the current rate of $0.003 a kilowatt-hour and $1.32 a kilowatt-month. Economic Value and Charges for Ruedi Reservoir Storage Water .' The financial terms under which water from Ruedi Reservoir would be available for the Basalt Project are not established. In the absence of these, the following assumptions are used in the Basalt Project studies. Economic value The developing demand for water in the Colorado River Basin seems to assure near-term use of all available water supplies, especially Ruedi Res- ervoir water which is immediately available on a regulated basis. The mag- nitude of the expected alternative needs for the water seems to require an assignment of a value to the Ruedi water for inclusion as a cost in the benefit-cost evaluation of each potential alternative use. This will tend to assure a comparable evaluation of various alternatives for use of Ruedi water as a basis for decision making. A value of $6.50 for each acre-foot of Ruedi Reservoir water is used. This figure was derived by assigning to the 62,000 acre-feet of water, as- sumed to be available from Ruedi for new west slope use, the proportion of Ruedi costs for such ~~e shown in the Bureau of Reclamation report on Ruedi Dam and Reservoir.lJ The assigned cost amounts were adjusted for actual construction costs of Ruedi Reservoir and these amounts were then .1 !I Bureau of Reclamation Report of September 1959 on Ruedi Dam and Reservoir, printed as House Document No. 353, 86th Congress, 2nd Session, supplementing Bureau of Reclamation Report on Fryingpan-ArkansBs Project, printed as House Document 187, 83rd Congress, 1st Session. 22