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.. , ~ OQ}710 . . UNITED STATES DEPARTMENT OF THE INTERIOR 8UREAU OF RECLAMATION AND UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION AGREEMENT ON COLORADO RIVER STORAGE PROJECT POWER REPAYMENT STUDIES (r ~. Over the last several years, the Colorado River Energy Distributors Association (CREDA) has disagreed with the Western Area Power Administration (Western) on the appropriate level of rates for power generated by the Colorado River Storage Project (CRSP). This difference of opinion resulted in CREDA's filing of protests as to CRSP rates before the Federal Energy Regulatory Commission (FERC). The FERC in its decision on Western's FY-1977 rate. held that future CRS? participating projects should not be included in the power repayment study unless the Bureau of Reclamation (Bureau) made a gOOd faith showing of a reasonable expectation that a project or a separable feature thereof would be constructed, Since the FERC ruling. Western, the Bureau, and CREDA have explored mutually agreeable means of implementation of the reasonable expectation standard. General agreement has been reached as to the adoption of certain policies, methods and standards that will satisfy the FERC test, the con- cerns of CREDA, Western and the Bureau and meet the requirements of the CRSP act. The following policies, methods and standards will be used as a result of these agreements in the development of CRSP power rates, com- mencing with the next CRSP rate revision to be promultated by Western, but not including any substitute rates necessitated by the rejection of any CRSP power rates currently with the FERC. 1. The parties hereto agree that the power repayment study must include all authorized CRSP participating projects. The Bureau agrees, however, to schedule repayment requirements for projects in an indefinite status such that they do not control the rate under consideration. Participating pro- jects or separable features thereof shall not be included in the rate setting years of the power repayment study unless a definite plan report is prepared, water rights are substantially acquired, environmental clearances are obtained and repayment contracts with water users are signed. Exceptions to this standard may be exercised at the discretion of the Commissioner of the Bureau (i) on behalf of Indian projects, (ii) for the Animas-La Plata project, and (iii) where Congress has appropriated construction funds.