PROJ00492 - Laserfiche WebLink

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I I I I I I I I I II I I I I I I I I I PROJECT COST The total capital cost, expressed in January 1982 price levels unadjusted for inflation during construction and the costs of financing, was estimated to be $181,588,000. Estimates of the total investment cost of the project, based on an assumed June 1991 on-line date and 8 percent annual in- flation, were illustrated by assuming that financing would be provided either through the CWCB's construction fund program (5 percent interest rate amor- tized over 40 years) or through the issuance of revenue bonds by a tax exempt, political subdivision of the state (12 percent interest rate amortized over 30 years) . These estimates are $284,388,000 and $414,155,000, res pecti vely, the differences being attributable to the different interest rates and financing requirements of each approach. The total annual costs, based on a 1991 on-line date, are $19,571,000 and $48,106,000 for the CWCB funding and revenue bond financing approaches, res pecti vely. These annual costs include debt service and oper- ation, maintenance and replacement costs. In 1982 dollars, the costs would be $9,488,000 with CWCB funding and $23,322,000 for the revenue bond financing approach. COST OF WATER The annual cost per ac-ft of a 175,000 ac-ft firm water supply (for delivery at the reservoir) was estimated for both the 1st and 10th year of project operation under the two different financing approaches. For CWCB con- struction fund financing, the estimated costs of water (in inflated dollars) are $49/ac-ft in the first year of operation and $31/ac-ft in the 10th year. For revenue bond financing, the corresponding estimated costs of water (in inflated dollars) are $212/ac-ft in the first year and $193/ac-ft in the 10th year. These costs reflect the projected revenue from hydropower and also indicate that during the first ten years of operation, the power revenues will actually decrease the unit cost of the water. In constant 1982 -5-