Laserfiche WebLink
<br />. <br /> <br />Electric energy will be transmitted over a mile and a half of trans- <br />mission line, where it will be interconnected to the power grid of <br />Public Service Company of Colorado (PSCo), which will purchase the <br />power under the provisions of the Public Utilities Regulatory Policy <br />Act (PURPA). Water will be exchanged through a transmountain <br />diversion system and sold on the Eastern Slope in municipal and <br />industrial markets, or it will be retained on the Western Slope for <br />use in the oil-shale or other industrial markets. <br /> <br />. <br /> <br />The feasibility study shows that this project can be designed, <br />constructed, financed, and put into operation for $111,000,000. <br />Assuming that the project is a qualifying PURPA facility, the <br />majority of this investment is eligible for a 10% investment tax <br />credit and a five-year accelerated depreciation. The project wi 11 <br />generate between 108 and 114 mi 11 ion kWh per year for an average <br />year. The annual firm water yield for agriculture, industrial, and <br />transbasin uses will be 20,000 ac-ft in the initial years of <br />operation and decline to 15,000 ac-ft in approximately 25 years (due <br />to sediment accumulation in the reservoir). Capital generated from <br />the firm annual water yield of 15,000 ac-ft is estimated to be <br />$74,000,000 based on current prices for perpetual rights to water in <br />the Eastern Slope market escalated to the initial year of operation <br />when this capital was assumed to be real ized. In the first year of <br />operation, the electrical energy and capacity revenue is estimated to <br />be $7,400,000 and would escalate at an annual average rate of <br />approximately 3%. The early years of operation may generate <br />additional water-sales revenue for impoundments in excess of the <br />15,000 ac-ft. These total water and electrical energy and capacity <br />revenues will more than offset the annual operating expenses, which <br />are estimated to be about $1,700,000 in the first year and will <br />escalate at an average annual rate of approximately 5%. Residual <br />revenue would also cover the fixed debt service of $4.8 million. The <br />annual revenues and expenses are illustrated in Figure S-4. The <br />resulting annual cash flows after debt servicing and after <br />depreciation and taxes is illustrated in Figure S-5. Net after-tax <br />revenues in the fi rst year of operat i on are est imated to be over $8 <br />million. <br /> <br />. <br /> <br />3686-al3 <br /> <br />S-2 <br />