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CHAPTER III BASIS FOR ANALYSES , ~ available from the Colorado River Storage Project at the current rate of $0.005 a kilowatt-hour and $1.32 a kilowatt-month. Benefit-Cost Analyses Benefits and costs were analyzed over a 100-year period. An inter- est rate of 6 1/8 percent was used in discounting, benefits and costs to a common time basis and in computing interest during construction. This is the rate that the Treasury Department has certified for use during fiscal year 1976 for projects being planned and formulated pursuant to MOP guidelines. Benefits Irrigation Benefits Irrigation benefits from the Yellow Jacket Project are'estimated at $61 for each acre-foot of project water. These. were estimated from de- tailed budget analyses of representative farms in the area. The farms studied were a composite of class 2 and 3 lands and included a cash-crop and sheep farm with private range, beef farm with private and public range, and Grade A dairy farm. A 1975 current normalized price base was used. The budgets were based on agricultural conditions anticipated. ". ~ .. Municipal and Industrial Water ,Benefits Benefits from the use of project water for municipal and industrial purposes have been estimated as the cost of the cheapest single-purpose alternative method of providing a year-round water supply in the absence of a Federally financed project. It was assumed that all of the water would have to be purchased from a storage supply since direct flows of the streams are fully appropriated except in high runoff periods. The storage supply was assumed to be Thornburgh Reservoir for coal develop- ment in the Milk Creek Segment. For coal development and municipal and domestic water, in the White River Segment, a reservoir on the South Fork at the Sweetbriar site was used. Water would be released to the river, rediverted near the mouth of Big Beaver Creek, and pumped to the Coal Creek area for use. For oil shale development, it was assumed that surplus spring flows would be pumped from the White River to a storage reservoir on Yellow Creek. Cost adjustments have been made in order to compensate for the different points of delivery under private versus Federal development. ';:"" Estimated construction costs of the single-purpose alternatives were based on January 1976 prices and annual operation, maintenance, and replacement costs on 1974-75 prices. Construction costs and interest " 26