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 CRSP legislation credits each of the Upper Colorado River
Basin states with a share of the net CRSP power revenues, which
are applied to the repayment of the participating projects.
Every net revenue dollar earned by the CRSP, less state-
specific revenues, is apportioned according to the
apportionment formula specified in the CRSP legislation, with
46 cents credited Colorado, 21.5 cents to Utah, 17 cents to New
Mexico, and 15.5 cents to Wyoming.

The participating projects are assigned two additional specific
sources of revenue:

a. State-Specific Revenues. Net power revenue is estimated
for each participating project powerplant by applying the
present or proposed power rates to the average net
capacity and energy output estimated for each powerplant.

After all CRSP resource costs assigned to power are repaid
to the Treasury, all net revenues earned by participating
project powerp 1 ants, ca 11 ed "state-speci fi c revenues, II are
credited to the state within which the plant is located
and are not available for apportionment to the other
states.

b. Surplus M&I Revenue. Surplus M&I revenue is applied first
to the outstanding balance of that part of the storage
units' irrigation cost assigned to power for repayment.
After the storage units' irrigation investment is repaid,
surplus M&I revenue is directed to the Upper Basin states
for application to repayment of the participating projects
according to the apportionment formula.

To assure that the firm power rate in the PRS is adequate, the
net power revenues required from the CRSP to credit apportioned
revenues to the states, and from which participating projects'
construction costs will be paid, are separately calculated and
then inserted into the CRSP PRS. The procedure is demonstrated
in Appendix Q, which shows the calculations for Colorado, New
Mexico, Utah, and Wyoming, respectively.

Whenever the sum of surplus M&I revenues, state-specific power
revenues, and net power revenues previously apportioned to a
state is insufficient to meet the repayment requirements of a
participating project within that state, a further distribution
of apportioned CRSP revenues is triggered. The state with the
financial need is said to be "driving" the apportionment at
that point. The state in need receives exactly enough money
from CRSP to cover its financial shortfall; the other three
states receive apportioned funds surplus to their then-present
needs, in the ratio set out in the legislation.

Any excess apportioned, state-specific, or surplus M&I revenues
accumulated by a state are assumed held in the Treasury until
they are required to repay the cost of the participating
projects within that state.

19