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WSP00608
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Last modified
1/26/2010 12:26:52 PM
Creation date
10/11/2006 9:51:08 PM
Metadata
Fields
Template:
Water Supply Protection
File Number
8220.100.50
Description
CRSP - Power Rates
Basin
Colorado Mainstem
Date
10/1/1989
Author
USDOE - WAPA
Title
Salt Lake City Area Integrated Projects - Proposed Adjustment of Firm Power Eates
Water Supply Pro - Doc Type
Publication
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<br />increased to meet additional Integrated Projects revenue requirements <br />of $16.4 mi11ion. The balance will come from economy energy sales and <br />other revenues. <br /> <br />VI. SUPPORTING DATA <br /> <br />PRSs are used to determine if power revenues will be sufficient to pay, <br />within the prescribed time periods, all costs assigned to the power <br />function. Repayment criteria are based on law and policies established <br />in DOE Order RA 6120.2, shown in 'Appendix F. According to DOE Order RA <br />6120.2. power revenues are required to repay power-related investment <br />costs including interest within 50 years, repay power-related <br />replacement costs including interest within the service lives of the <br />equipment, and repay irrigation investment costs assigned to power <br />within the time allowed for repayment by irrigation water users. Power <br />revenues also pay annual power operation, maintenance, and replacement <br />(OM&R) costs (except those paid by M&I water users), and salinity <br />control construction and OM&R costs allocated to the Upper Colorado <br />River Basin in accordance with Section 205 of the Colorado River Basin <br />Salinity Control Act, Public law 93-320, 88 Stat. 273, dated June 24, <br />1974. <br /> <br />Annual available revenues are first used to pay annual operation and <br />maintenance (O&M) and interest expenses. Any remaining annual revenues <br />are then applied to repay the investment costs assigned to power, <br />assuring that each investment is repaid within its required repayment <br />period. Normally, the highest interest-bearing investments are repaid <br />first because this usually results in a lower overall power rate. In <br />those instances where the power rate can be reduced by repaying lower <br />interest-bearing investments first, this is done. <br /> <br />Separate PRSs are prepared for CRSP, RGP, and Collbran to determine the <br />financial needs of the individual projects. The results of the smaller <br />projects' PRSs are combined with the CRSP PRS to create the Integrated <br />Projects PRS. This is done by summing the resources of the three <br />projects and including the revenue required from power sales for the <br />smaller projects as an "other expense" to CRSP. The Integrated <br />Projects PRS is then prepared and the blended rate needed to meet the <br />revenue requirements of all the Integrated Projects is determined. <br /> <br />The information sources for the PRSs are: <br /> <br />A. Power Resources and Power Operations. Hydroelectric capacity and <br />energy resources are primarily governed by climatic conditions and <br />the supply of water, resulting in cycles of wet and dry years. <br /> <br />1. CRSP Hydrology. The availability of water in the Colorado <br />River is dependent upon long-term hydrologic patterns. The <br />Bureau of Reclamation (Reclamation) uses a computerized model <br />of the Colorado River, called the "Colorado River Simulation <br />Model" (CRSM), to simulate monthly reservoir operations and <br />hydroelectric power generation for the future. The current <br />CRSM version uses actual historical data for the natural flow <br />of the Colorado River for water years (WY) 1906 through <br /> <br />7 <br />
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