WSP00555

• File Number: 8220.100.40
• Description: CRSP
• Basin: Colorado Mainstem
• Date: 6/30/1978
• Author: USDOI
• Title: 22nd Annual Report on the Statuts of the Colorado River Storage Project
• Water Supply Pro - Doc Type: Annual Report

Power Repayment Study

Powerplant al CrySlal Dam

Results of the power repayment study lor
FY78 are depicted in the graph on page
28. Estimated annual power revenues are
shown together witl'1 their application.
Total revenues lor the period shown 81(.
ceed $4.7 billion. After repayment of
about $1,0 billion lor the power invest.
ment and replacements and $380 million
lor interest. power revenues should be
sufficient to repay about $70 million in ir.
rigation costs and provide approximately
$1.6 billion lor assistance in repayment of
participafing projects.

Following are explanatory notes of the
terms used on the graph. Copies of the
highly detailed power repayment study
can be obtained upon request.

Operating Expenses

Historically, these costs include the value
of CASP power generation to replace
Hoover deficiencies; interchange charges;
wheeling costs; and operating and main.
tenance costs. (Future costs include the
operation, maintenance, and amortization
of salinity control facilities as well as the
latler two Charges.)

Energy Purchases

Annual costs of purchases lor firming
energy, for fuel conservation, and for
energy to replace the deficiency in
Hoover Dam powerplant generation
caused by storage project operations. In

past years, energy purchases lor fuel con.
servation were shown as an energy pur-
chase expense and the revenues from
energy sales lor fuel conservation were
included in the gross revenues. II is
assumed that there will be no energy pur.
chases for fuel conservation in future
years.

Replacements

Payments made on power replacements,
with the highest interest-bearing compo-
nent (whether replacements or other
power investment) being paid first.

Power Interest Payments

Annual interest on the unpaid power
investment.

Power Principal Payments

Payments made on the power investment,
with the highest interest.bearing compo-
nent (whether power investment or
replacement) being paid first.

Storage Unit Irrigation Principal Payments

Power revenues which are applied toward
payment of the irrigation allocation of the
storage umts. These revenues repay the
major portion (about 571 million, or 73
percent) of such costs. with the remain-
der (about $27 million, or 27 percent)
being repaid from M&I water revenues.

Power Revenues Available for Irrigation
Assistance to Participating Projects

Power revenues available alter the above
costs have been paid, the amount of
which will be about $1.640 million
through year 2053. A lesser amount
(about 528 million, or 2 percent of the
tolal available) will also be available from
M&l water revenues.

Tolal Annual Power Revenues

Annual revenues obtained from energy
and capacity sales, wheeling for others,
rental of substation facilities to others.
reimbursement by the lower Basin lor
energy purchased by the CASP to replace
the defiCiency in Hoover Dam powerplant
generation, and miscellaneous revenues.
In the study, the present firm power rate
of $1.34 per kilowatt.month and 3.4 mills
per kilowatt.hour is increased to $1.93 per
kilowall-month and 4.5 mills per kilowatt.
hour beginning January 1. 1980. A deficit
of about 520 million is predicted to occur
in FY 1979 due primarily to the high cost
of energy purchases for firming and
Hoover deficiencies. This deficit is
scheduled to be fully repaid by FY 1981,
and is shown as the black area in the
inset.

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