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<br />SUMMARY <br /> <br />maintenance, the energy production cost would be reduced to about <br />35 mills/kWh (from the FY93 actual rate of 38 mills/kWh). Adding <br />the sale of an average of 3,200 acre-feet of water to the RIP would <br />further reduce the rate to approximately 34 mills/kWh. <br /> <br />The composite value of power produced by the Collbran Project is <br />somewhere between the current SLCAIP wholesale rate of 16.72 <br />mills/kWh and the 26 mills/kWh cost of peaking power. Western <br />purchases to meet load, which Collbran partially displaces. The <br />cost of Collbran power production significantly exceeds its <br />monetary value to Western and can be expected to remain somewhat <br />higher even with Reclamation's best efforts to reduce net <br />production costs through Alternative A. <br /> <br />In addition, the component of Alternative A aimed at selling <br />project water, with the most likely customer being the RIP, may <br />have the following potential consequences: <br /> <br />Public debate over the <br />previously available to <br />endangered fish. <br />Deteriorating relations with ute and possible use of their <br />water rights in the. Plateau Creek basin to limit the use of a <br />---------,,-ew vega Keservolr--s~ofage-rTgnE~--------------~----_. <br />Additional demands on Green Mountain Reservoir's Historic <br /> <br />attempt to convert <br />M&I users to flow <br /> <br />a water supply <br />enhancement for <br /> <br />Users Pool at a time when questions remain as to its adequacy <br />to meet existing demand. <br /> <br />Full consideration should be given to the net value of water supply <br />contracts toward the overall Collbran Project financial condition <br />along with the significance of the progress toward the RIP goals <br />verses potential adverse public reaction. Lack of progress toward <br /> <br />iv <br />