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<br />. <br /> <br />. <br /> <br />. <br /> <br />In the 1977 study, January 1977 cost levels were used to project future <br />replacement costs, while January 1981 cost levels were used by Western and <br />estimated October 1981 cost levels were used by the Bureau of Reclamation for <br />the 1981 study. Based on a composite cost index developed by the Bureau of <br />Reclamation, costs have increased 40% from January 1977 to January 1981. <br /> <br />The average annual costs in the 1981 study are $73 million -- a $25 million <br />increase since 1977. This means, of course, that revenues must increase in <br />the same amount. To obtajn the required revenues, we are proposing an <br />increase in the firm and nonfirm transmission rates and in the firm power <br />rate. <br /> <br />The proposed firm transmission rate is $10.27 a kilowatt-year, and the <br />proposed nonfirm transmission rate is 2 mills a kilowatt-hour. The proposed <br />firm power rate consists of an energy charge of 5 mills per kilowatt-hour, <br />and a capacity charge of $2.15/kW month. The charge for unauthorized <br />overruns would continue to be 10 times the firm power rate. <br /> <br />10 <br />