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1 14 COLORADO RIVER STORAGE PROJECT enced during the filling period. Assuming a cost of replacement energy of 5 mills per kilowatt-hour, a total of about $1,750,000 would be required to make the allowance under average flow conditions, This is a relatively insignificant amount. Nevertheless, because of the possibility of less than average flows, its .concern is understandable and we are therefore making provision in principle 5 for reimburse- ment to the upper; basin fund by the Hoover power allottees for whatever moneys are used from the fund for this purpose, The word "reiml:jursed" as used in principle 5 I1pplies only to the moneys expended ftom the fund, If nonfirm or other energy from the storage project'powerp1ants. is used to make the I1llowl1nce, this is not to be considered 11 cost to be reimbursed. Notification of the intent to secure reimbursement would be accomplished through I1n I1dditionl11 regull1tion for generl1tion I1nd sl1le of power in accordl1nce with the Boulder Canyon Project Adjustment Act, The additionl11 regull1tion,l1s well ~s being issued formally, is I1lso an attachment to, and a p.art of, the g'en~ral prir,;cip1es .an~ criteria: . OonsldemttOn wa~ gIven to mcludmg mterest m the reImbursement to the upper basin fund. Pursuing this objective would logically call for changes in the method of determining the deficiency for which the allowance is to ]:>e made, Taking 1111 factors into account, and in the interst of a practicl11 approl1ch, it is concluded that the reimburse- ment should consist of a dolll1r-for-dolll1r return without interest, Although the Oongress has reserved to itself the right to say how the revenues in the separate fund will be expended within the Oolorado River Bl1sin, the re~ponsibility for setting rates, which is the source of revenues in the fund, is in the Secretary, Oonsequently, the addi- tional regulation is, a notification that the rates to charged for e1ec- tricl11 energy I1fter 1,987 will, among other things, include a component to assure revenues ,in the fund to I1ccomplish reimbursement, This is as fl1r as the S~cretary can go at this time without additional legislation, : Suggestions hl1ve been made that the present Oolorado River development fund. be used either to ml1ke necessary replacement energy purchases or to reimburse the upper Basin fund of a current basis. Section 2(d) of the Boulder Oanyon Project Adjustment Act provides for the sUm of $500,000 annul1lly from Hoover revenues to be available for investigl1tion and construction of projects in the basin, The suggestion then is to use this money for energy replace- ment purposes ratl:(er than for project investigation or construction, To do so would req)1ire legislation, Regardless of what source of funds, if any, may finally be utilized in I1ccomplishing th,e allowance it is our intent to make minimum use of dolll1rs but maximum use of energy from Federal proj ects for any required replacement, It is not intended to use firm energy from the storage project powerp1ants if such energy could otherwise'be sold at firm power rl1tes. If the I1ll0wance is ml1de by delivering energy it will be delivered in a monthly pattern designed to fit those months when water otherwise would have been released at Hoover, Stated another WI1Y, it is not our intent to force~ replacement energy on the contractors. in those months when dowJjstream releases are generating 1111, or close to all, of the energy whicj1 they might otherwise have expected to receive, We have alsO. con~idered a proposal that the Hoover power contracts and regulations might provide 11 means of eecuring,revel)ues to pur- . .