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<br />, ' <br /> <br />^ <br /> <br />. <br /> <br />. <br /> <br />It does not appear that the Narrows powerplant would be financially <br />feasible. Capacity and energy would have to be marketed at an average <br />of 53.3 mills/kWh. The benefit analysis showed that only about <br />40 percent of the energy generated would be firm and could be marketed <br />at approximately that rate. Initial project investment exceeds <br />$3,000 per kilowatt. <br /> <br />The short duration during which firm capacity and energy would be <br />available (June, July, and August) would seriously reduce the desir- <br />ability of this unit. <br /> <br />Cost Allocation <br /> <br />Table 4 summarizes allocated project costs, interest during construc- <br />tion, and OM&R costs among the various project purposes based on <br />the separable costs-remaining benefits method. Allocations are pre- <br />sented for Narrows development with all authorized purposes and for <br />development without flood control. Hydroelectric power is not included <br />in the allocations since it is not an authorized purpose and is not <br />economically feasible. <br /> <br />Repayment <br /> <br />The water supply for repayment purposes includes the water to be <br />acquired from the Weldon Valley Canal which would be inundated by the <br />reservoir. Therefore, there would be a total water supply of <br />133,000 acre-feet annually ava i I ab 1 e for repayment purposes <br />(102,000 acre-feet prov ided by the proj ect and the 31,000 acre-feet <br />acquired from Weldon Valley Canal). Of the 133,000 acre-feet water <br />supply, irrigation repayment would be based on 108,000 acre-feet and M&I <br />repayment would be based on 25,000 acre-feet. <br /> <br />Irrigat ion <br /> <br />The Lower South Platte and the Central Colorado Water Conservancy <br />Districts have both entered into repayment contracts with the United <br />States to repay an appropri ate share of the allocated irrigat ion costs. <br />Any modification in the amount to be repaid will necessitate renegotia- <br />tion of the contracts. <br /> <br />Irrigat ion payment capacity has been indexed to reflect January 1981 <br />price levels. The full payment capacity would pay allocated annual OM&R <br />costs for Narrows Dam and Reservoir ..and rep<1Y a part of the allocated <br />irrigation construction obligations. Table 5 shows that an estimated <br />$8.40/acre-foot is available for construction cost repayment. It should <br />be noted that an updated payment capacity analysis would be required to <br />determine the accuracy of this estimate. <br /> <br />a <br />