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Three of the CRSP participating projects (Animas-La Plata, Dallas Creek, and CUP) include investment costs for transmission systems. The Dallas Creek Project is expected to include a small powerplant built with non-Federal funds. A transmission system will be necessary to connect with the CRSP Transmission System. The CUP and the Animas-La Plata Project will have a significant pumping load, and require transmission facilities to interconnect with the CRSP Transmission System. The Craig-Bonanza Transmission Line is under construction and is scheduled for completion in early 1990. The Waterflow phase shifting transformer is completed and will be entered in the books in FY 1990. The Shiprock phase shifting transformer is included in the FY 1989 investments. Reclamation plans to complete the rewinding of the Morrow Point generator in 1990 and the uprate of the Flaming Gorge generators in 1993. 2. Power-Related Replacements. Power-related replacement costs have been capitalized since FY 1973, as shown in Columns 16 through 19 of the PRS Executive Summary, displayed in Appendix J. Replacement costs through FY 1988 are actual historical data. Replacement costs for FYs 1989 through 1994 are taken from Reclamation's and Western's FY 1990 Congres- sional Budget. Estimated replacement costs thereafter are projections provided by Western's Repayment System computer program. The projections are calculated by indexing the cost of original plant investment to January 1989 levels and then applying the statistically-probable service lives of those facilities. As each investment in each plant account becomes due for replacement, the computer program assumes that the replacement is made, along with provision for its repayment. The total allocated plant investment used in estimating replacement costs includes all electric plant costs, plus that portion of the multipurpose investment assigned to power for repayment. Service lives are based on the August 1981 pUblication issued by Reclamation and Western entitled: "Replacements: Units, Service Lives, Factors." The interest rates applied to replacements are the same as those applied to the repayment of capital investments, shown in Appendix M. A graph of the replacements projected for FYs 1982 through 1988 in the FY 1981 CRSP PRS, compared to the actual replacements through FY 1988 and the future year projections from the FY 1989 CRSP Preliminary PRS is in Appendix O. Though the graph seems to show that the actual replacements in FYs 1983 through 1988 are lower than the budget projections for those years, it is misleading. The replacements were made essentially as scheduled. However, there were substantial delays in the posting of these replacements to plant-in- service, once they were completed. The delays are particularly evident during FYs 1985 through 1988, when Western's automated Financial Management System was being developed and installed. 17