WSP00608

• 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

5. Other Power Revenues. There are miscellaneous power revenues,
earned from sales to power pools and other customers. The
amounts are a small portion of overall Integrated Projects
revenues.

6. Transmission Service Revenues. CRSP has a transmission system
that earns revenues from providing transmission service to non-
CRSP power producers, both Federal and non-Federal. Collbran
and RGP do not have transmission facilities. Transmission
revenues are shown in Appendix H.

Beyond FY 1996, all estimates are held constant, Completion of
the Northern Arizona 345-kV transmission line in FY 1995 is
expected to improve transmission service capability. For the
FY 1989 CRSP Preliminary PRS, it was assumed that an additional
100 MW of transmission service, above Western's own needs,
would be sold because of this increased transmission
capability.

a. Firm Transmission Service. Western has firm, long-term
(more than 1 year) commitments to provide transmission
service over the CRSP system. The firm transmission
service rate for October 1988 through June 1989 was
$15.94/kW-year. The firm transmission service rate was
increased to $21.72/kW-year on July 1, 1989.

b. Nonfirm Transmission Service. Revenues from nonfirm
transmission service are unpredictable and depend on the
availability of transmission capacity and on the energy
market in the surrounding states. Beginning August 1,
1989, Western adopted a flexible nonfirm transmission rate
for the CRSP transmission system. An average of nonfirm
transmission service revenues earned in FYs 1984 through
1988 has been used to project income from this source
through the end of the study period. Western does not
expect the flexible nonfirm transmission rate to affect
actual nonfirm transmission revenues substantially.

c. Exchange Agreements. Western has two agreements allowing
customers to exchange CRSP hydropower generated close to
their loads for thermal power generated at their own
powerplants located farther from their loads. The
revenues collected from these agreements are fixed by
contract. The Salt River Project pays Western $1.75/kW-
year for 500,000 kW, and Colorado-Ute Electric Associa-
tion, Inc., pays Western $1.75/kW-year for 100,000 kW.
The total revenues collected by Western from these
agreements are $1,050,000 per year.

For the FY 1989 CRSP Preliminary PRS, it was assumed that all
existing transmission service commitments would be extended to
the end of the study period, either with the presently
contracting utilities or with others.

11