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. CHAPTER V PUMPING PLAN Development Program Federal development of the pumping plan would require 4 years fol- lowing authorization. One yea:r would be required for advance planning and three summer seasons would be required for construction. Benefit-cost Analysis Benefits Costs of the cheapest single-purpose alternative means of develop- ment, used as a basis for estimating benefits of the pumping plan, were estimated at an average of $1,827,500 annually. The alternative was con- sidered to be a non-Federal development which would be essentially the same as the Federal development. Costs of the non-Federal development, however, were based on public non-Federal financing over a 25-year pe- riod with interest at 7 percent. It was assumed all water for the de- velopment would be purchased from Ruedi Reservoir at $10 an acre-foot. Estimated costs for non-Federal development are shown below. . Investment Construction costs (January 1973 prices) Interest during construction (7 percent) Total Average annual cost Investment (25-year period at 7 percent) Operation, maintenance, and replacement costs Costs of power for pumping Ruedi Reservoir storage charge Total $13,345,000 1,401,000 14,746,000 1,265,300 125,600 278,600 158,000 1,827,500 Benefits were distributed to municipal and domestic and outdoor resi- dential uses in proportion to the amount of water each purpose would re- ceive. Adjustments were made in the estimates to reflect loss of public land to agricultural use as a result of construction of project facilities. The benefits by purposes are shown below. Almual benefits Negative effects Total Municipal and domestic use. $1,249,100 -400 1,248,700 Outdoor residential use $578,400 -200 578,200 Total $1,827,500 -600 1,826,900 . 48