Laserfiche WebLink
<br />each salinity control unit or separable feature thereof (shall <br />be) payable from the Upper Colorado River Basin Fund. . .," <br />and authorizes adjustments in the CRSP's electrical rates to <br />cover the costs of the salinity control units. Reclamation <br />estimates annual salinity control costs for the length of the <br />CRSP PRS, and these figures are included in the Executive <br />, <br />Summary as an "other expense." <br /> <br />4. Interest Rates. <br /> <br />a. Section 5(f) of the CRSP Act, as amended, reads as <br />follows: <br /> <br />". . . The interest rate applicable to each unit of the <br />storage project and each participating project for <br />purposes of computing interest during construction and <br />interest on the unpaid balance shall be determined by the <br />Secretary of the Treasury, as of the beginning of the <br />fiscal year in which construction is initiated, on the <br />basis of the computed average interest rate payable by the <br />Treasury upon its outstanding marketable pUblic <br />obligations, which are neither due nor callable for <br />redemption for fifteen years from the date of issue <br /> <br />" <br /> <br />b. Section 11.a. of DOE Order RA 6120.2, which applies to all <br />power marketing administrations, states: <br /> <br />". . . Except as otherwise provided by law, the interest <br />rate to be used for computing interest during construction <br />and interest on the unpaid balance of the costs of Federal <br />power facilities, the construction of which is initiated <br />after September 30, 1983 . . . shall be the. . . rate. . <br />during the fiscal year in which construction is initiated <br />" <br /> <br />Using the above criteria, the interest rates shown in <br />Appendix M have been established by Western for the facilities <br />on which construction is complete, in progress, or budgeted. <br />These rates are also used in calculating interest during <br />construction, which is capitalized. <br /> <br />D. Investments. <br /> <br />Collbran, CRSP, and RGP are multipurpose projects, which means that <br />their various features serve an assortment of needs, such as <br />irrigation and other consumptive uses, flood control fish and <br />wildlife enhancement, and power production. Reclamation analyzes <br />the benefits derived from each feature by purpose. The cost of each <br />feature is then divided among its respective beneficiaries, using <br />the "separable-costs remaining-benefits" method of cost allocation. <br />The responsibility for any repayment which may be due to the <br />Treasury is charged to that component. <br /> <br />15 <br />