WSPC04055 - Laserfiche WebLink

Home Browse Search

I' " . ., 00170S . . ~: was what the Lower Basin states had hoped for, I am now trying to find what the bill's current status is. Request for WAPA Study On September 19 I met with personnel of the Salt Lake City Office of WAPA. They indicated that they had performed some internal studies in 1982 which partially answered the question we had about what the effect on the CRSP power rate would be were the federal investment in power features to be repaid over a full 50 years. While the study they performed in 1982 did not stretch the repayment of power features out to a full 50 years, the study did assume that repayment of the power features would be over a much longer period of time than is assumed in the current rate setting procedure. The 1982 study also assumed that the power fea t ures did not have to be repa id be fore there could be any payment towards a participating irrigation project, Based on the 1982 study, it would appear that Babbitt's proposal could lead to a reduction in the CRSP power rate from what it would otherwise be, all other things being equal, of about 0.5 to 1 mill per Kwh. WAPA advised that they would have to charge us for any special studies which we would want. They indicated that a full study of Babbitt's proposal would cost about $4-6,000. However, I think I talked the staff into performing the requested study at no expense to us on the grounds that they needed the answer also in light of the agreements discussed in the next section. I am to call back next week to see if they did decide to prepare the study, Even if they do not prepare the study, it is my judgment that it is not worth $4-6,000 to get a precise estimate of the effect of Babbitt's proposal. The reason for this is that WAPA was quite confident, based on their 1982 internal study, that the repayment -of power 'features over a full 50 years would not reduce the power rates, all other things being equal, by more than about 0.5 to 1 mill per Kwh. WAPA, BuRec, CREDA Agreements I learned on September 19 that WAPA, the Bureau of Reclamation, and the power customers' organization, the Colorado River Energy Distributors' Association (CREDA), have reached a series of agreements concerning the rate setting process, As I understand it, the agreements are encompassed by 3 documents: MEMORANDUM -5- September 28, 19~3 (l) WAPA and the Bureau have signed an agreement (copy enclosed) which does two things. First, it sets forth the criteria by which the Bureau will determine which authorized projects it will schedule in the rate base for WAPA's power repayment studies in such a manner that the rate is not affected. This essentially formalizes the procedure which was used in the FY 81 power rate adjustment now pending