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Rate of Repayment Undergroond powe<planl, MOHOW POInt Dam During FY78, nearly $7 million 01 the Federal investment in the Colorado River Storage Project and participating prOjects was repaid. To date. $99 million has been repaid. This represents about 12 percent of the $840 million completed plant.in. service, and nearly 4 percent 01 the $2.314 billion projected total reimbursable Federal investment in the authorized storage units and participating projects. The project also earned sufficient revenues to pay all operating. current interest, and replacement costs. Conser. vancy districts paid the operating costs 01 participating projects that they operate. Nearly one-third 01 the projected Federal investment was in service at the end of the fiscal year. Power sales prOduced 90 percent 01 the net revenues received during FY78. All the power revenues were applied toward the power investment in the storage units and participating projects. More than 11 percent 01 the estimated power invest. ment has now been repaid. The $6.1 million repaid In FY78 compares to a drought-caused deficit in net power revenues in FY77. Nearly a million dollars in repayment revenues came Irom municipal and in- dustrial water sales from Glen Canyon and Navajo Umts in FY78. This was all applied toward interest repayment on the power and M&I investments in the storage units. An additional half.million dollars in repayment revenues came from municipal and industrial water sales Irom live participating projects. This money was applied to repayment of M&I in- vestments in the participatmg projects. Repayment contracts have been executed lor 16 of the 24 participating proJects, 15 01 which are constructed or under con. struction. The Navajo Indian Irrigation Project is also under construction. but a repayment conlract is not required for this non-reimbursable Indian project. 01 the eight projects not yet under construc. tion, a contract has been executed lor one, three are nearing contract execution, three are in the advance planning stage, and one has been postponed indefinitely, In order to provide revenues sufficient to pay annual operating costs 01 the storage units, provide lor replacements, pay in. lerest charges, repay costs of the storage units allocated to power, help repay storage unit costs allocated to irrigation, pay specified salinity costs, and provide assistance in repaying the irrigation allocation of authorized participating proj- ects within the time limits prescribed by law, the CASP power selling rate will be increased. The proposed increase, to begin in January 1980, will raise the cur. rent power rate about 38 percent. The proposed FY80 rate would be about 51 percent above the original CASP power rate, which was in effect prior to April 1974. These increases are reflected in the exhibit in the envelope on the inside back cover, Principal among the reasons for the pro. jected increase are: the inflationary rise in present and projected power system operating costs; estimated higher costs to complete construction of authorized storage unit and participating project facilities, including mitigation and environmental protection costs; the in. creased cost of purchased energy re- quired to fulfill contract commitments; and the increase in the estimated con- struction and operating costs of four specific authorized Colorado River Salin. ity Controt Projects (Public Law 93.320, 88 Stat. 266). By projecting current estimates 01 CRSP costs, construction SChedules, and re'lenues from power sales (including the proposed rate increase), municipal and in. dustrial water sales. payments by irri. gators, ad '1alorem taxes, and miscel. laneous revenues. we can show that the reimbursable costs of the authorized COl. orado Aiver Storage Project and par. ticipating projects can be repaid within the authorized periods. 27