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<br />0756
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<br />FRYINGPAN-ARKA"'SAS PROJECT, COLORADO
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<br />$23,014,000 is nJlocnted to munieipl~l w~\t,cr 'dUpp'!'~ consistiug of
<br />$8,7i4,000 for joillt works Hnd $14,240,000 for the lI1uuicip.1 delivery
<br />syst,(,.Il1, und $6G,097,QOO is n.llocat.ed to irriglltion.
<br />111 lltcon)llDce with t.hc language in the bill the entire eost of t,he
<br />Rucdi Dltlll. iLud Resen"oir is considered, ill the pl'ojeet relJttymell.t
<br />study, flS II jlHl't or l.he Fr.vingl)un-Al'kilI1sas project ('\'en though. llS
<br />pointcd out. hereinbefore, it wi! pro\"idc llddit,iollld regulatory storage
<br />caplleity t.o serve fut.ure needs.
<br />The project. rcp:lyment study indicHt,es. t,h1Lt the power 1l1loL'ution
<br />will be rt~tnrBed wit.h interest. by t.he 41st year url,er l'-Olllpll't,ion of uIl
<br />power fllciJit,ies.
<br />'fhe repayment st.udy also indicat.es t.hnt t,he Jllllnieipnl wILter sup-
<br />ply uUoent-ion for joint, works ($8,7"i4,000) will be ret.urned with intcrest
<br />in 40 yellf'S following completion l.l[' <,:ollstrllct\On. If the munieipal
<br />wnter deli\'ery syst.em is eonst.fllcteJ hy t.he Fe-del'al Government the
<br />repaymellt sl,udy indica!"s t,llllt the allocation (ii-14,240,000) could be
<br />repll.id with interest in 50 YCllrs after the init.iution of lll11nieipnl water
<br />ser\'JC.c.
<br />'Vith resp<,ct, t.o irrigatiou, lhe t'ejluyment stud~r llldict\.tE'.s th,t1. tlw.
<br />nonint.rrcst b(~:1ring irri!,!at.ioll :lIlo(~:lt.i()Jl ($(,(j.OOi,OOO) ~()1l1rl he \,{',-
<br />t.urnell wi1.hin [;0 .v~Hrs .;rLor romp]pj.iOfl of ("of1'3truC'tiol1 from n~\'f'Il1]es
<br />recriH'd fl'()JI1 t,ill' Wtltcr lIS(~I':-iJ l'e\"ell11C:'3 rel'(~i\'rd from fL.I valorem
<br />t'OX\l7'., ;\\h\ revenue'.,; r\'\'.t'i\"e~t [rom pDwer opel'lltion'::i a.bo\'e those
<br />required for r.h(l rCflll)"llh:'ld, of the plH\"(J.r jll\'p~llllt'IlL
<br />The pO'l,"cr TC'pfl)lTIcnt, is lJuspd 1111011 II ruLe of U.:; mills }JeJ' kilo\liut,t-
<br />hour for firm energy. T1Jc repayment for municipal and industrial
<br />wat.er (not. inducting repn.ym(lnt of t,\w l\divery system) is \JllSed upon
<br />a rate of $5.40 pCI' acre-foot plll~ n port.ion of conservancy district
<br />tnxcs. [f t,he delivery system is built by the Federal Go\"ernment tbe
<br />addit,ionnl annual cost, woulfl he auout. $29 per acre-foot. to Colorl1do
<br />Spring-s find $[).:) per acre-foot. to the valley t.owns. The. eiLy or Pueblo
<br />would provide its O\\'n delivery system in nny event. ''''it.h respect to
<br />irrigat.ion. tIte repayment is based upon a rute of $.1).40 per acre-foot
<br />for 49.500 acr".fcet, of project wllte!', $3 pel' acre-foot for 11,800 acre-
<br />feet of Twin Lakes din~J'sion water and $2.25 per ncre-foot for H5,900
<br />acre-feet. of l'l'regulnted wint.er flows, plus thc conservancy <list,riet tax.
<br />IOllddit,ioll, the repaymcnt stud)- shows thnt. nbout $] 9,400,000 of the
<br />irrigation co:3t.s \.t'Ould be repai(l from surplus power re\"enues. The
<br />diffcrence bet.ween t.he amount. of wntcr expected to be sold and tbe
<br />ne\l' bcadgn\.e supply of \G:l,IOO ncre-feeL is exp!n;ned by the fael,
<br />that the water would be sold out of Pueblo Rescrvoit. \I'hile tbe head-
<br />gate supply includes usenble irrignt.ion ret.ul'n flows.
<br />Tile interest rate use,d ill the projcd repayment study is 2.6:32
<br />percent.. n.et.crlnined 011 the basis of the fOrInula. set out in the legisla-
<br />tion. This is the formula approved by Congress in t.he \Vlltpr Sup...
<br />ply Act of 1958 and is the one ill gen~rul u~e. {or all water resources
<br />development projects. It, is bnsed upon the ll\'erugl~ interest rate
<br />payable b~\; the Treasury on its long-t,enll oblignt.lof1s.
<br />An ecollomic anlllysis of the Fryillgpnll-Arkanslls project OYer a
<br />100~year period indicat.es that, on an annual tmsis, the project bene-
<br />fits will exceed the costs in a ruLio of 1.65 to 1. The total allnual
<br />benefits fife determined to be about $11 million 1 comprising irrig:t\tion
<br />he.nefits amounting to $5,007,000 annually, nUl1licipul and industrial
<br />water benefits amounting to $1,274,000 annually, po\l,'cr benefits
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