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

The work that is completed and scheduled in the FY 1989 CRSP
Preliminary PRS for posting in the FY 1989 financial statements
($23,046,000) moved the actual cumulative replacements
($73,239,000) above the amounts projected in the FY 1981 CRSP
Final PRS ($62,040,000).

3. Project-Related Irrigation Investment. Each of the Integrated
Projects includes costs allocated to irrigation. Irrigation
costs beyond the ability of the irrigators to repay become the
responsibility of the project's power revenues. Additionally,
repayment of the CRSP irrigation investment is assisted by the
application of M&I revenues that are surplus to repayment of
that portion of the storage unit investment allocated to M&I
for repayment. Appendix P shows the cumulative CRSP irrigation
investment assigned to power and M&I for repayment.

4. Partici atin Pro'ects Irri ation Investments. Column 29 of
the Executive Summary Appendix J) shows the portion of the
participating projects irrigation investment that has been
allocated to be repaid by power revenues. Column 28 shows the
power revenues available at the proposed rates.

The cost of the participating projects is to be repaid to the
Treasury from the water users, i.e., irrigators and M&I
interests, and apportioned net CRSP power revenues.

Costs are allocated among the uses assigned to the water
development. The two major uses are irrigation and M&I. Minor
cost assignments are made to fish and wildlife, recreation, and
other assorted water uses.

Irrigators repay the lesser of their assigned construction
costs or the 1 imit of their "abil ity to pay," as determi ned by
Reclamation. When the irrigators' ability to pay is below the
cost assigned to irrigation, net power revenues are responsible
for the remaining costs.

The procedure for repayment by irrigators is rather complex.
When the participating project is essentially complete, and
able to deliver water, a "block notice" is issued by
Reclamation. The issuance of the block notice signals the
start of the project's "development period." The development
period is the time allowed the irrigators to develop their on-
farm irrigation systems, clear their land, and purchase
required machinery for establishing and harvesting crops. The
development period is usually 1 to 5 years in length.
Immediately after the development period, the irrigators become
responsible for 50 equal annual installment payments to repay,
without interest, their allocated cost of the project.

Costs beyond the ability of the irrigators to repay are
assigned to apportioned net CRSP power revenues for repayment.
The repayment period begins when the development period ends.

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