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<br />APPENDIX 2 <br /> <br />COLORADO RIVER STORAGE PROJECT <br />COIflUTATION OF THE ECOIOHCAL BENEFITS TO THE <br />UNITED STATES FROM AMORTIZING THE REPAYMENT OF <br />THE IRRIGATION ASSISTANCE <br />(IIInO'Ilta in thousands) <br /> <br />PARTICIPATING PROJECTS INCLUDED IN <br />CURRENT ~R REPAYMENT STUOY <br />Current RecORiIki.ded <br />PoliCY Alternative Increase <br /> <br />Requi red power rate <br />(mills/kWh) 8,64 9.80 <br />Power repoid (year) 2000 2035 <br />Total interest !I $339,535 $521,601 <br />App:)rtfoned reverues <br />from power start (year) 2002 1989 <br />Total revenJeS <br />available ~/ & ~/ $1,621,089 $2,098,633 <br />Total irrigation <br />assistance 1,116,294 1,116,294 <br /> <br />Re....erues collected in <br />addition to irrigation <br />assistance require. <br /> <br />menU <br /> <br />$ 504,795 <br /> <br />$ 982:339 <br /> <br />Total Increase <br /> <br />Net present value at a discou>! of 8,875 percent~/ <br /> <br />BONNEVILLE UNIT IN CURRENT <br />POYER REPAYMENT STUDY <br />CUrrent Reccmnended <br />Policy Alternative Increase <br /> <br />1.16 <br /> <br />16,74 17,34 ,60 <br />1m 1993 <br />$262,594 $290,741 $ 28,147 <br />1993 1989 <br />56,303,927 56,616,959 <br />1,890,"1 1 ,890,1" <br /> <br />$182,066 <br /> <br />477,544 <br />5659,610 <br /> <br />$4,413,816 <br /> <br />$4,726,848 313,032 <br />5341.179 <br /> <br />$ 80.341 <br /> <br />$ 41.555 <br /> <br />!/Inclu:1es interest on aci:fitions arn replacenents to the Storage Project power facH fties. <br /> <br />~/Because of Western's repayment cdteri., which require a power rate sufficient to ply amual expenses, repay the <br />power investment within the allowable time fraTle, ard provide the a~rtioned revenues necessary to acc~lish <br />repa)Qel'lt of irrigation assistance within allowable time periods, the CII'IOUlt available exceeds the minilllJll <br />apportioned rewrues r~ired, as detliled in ~ix 1. <br /> <br />~/Beeac.5. of the effects of the apportionnent reqJirements of Public Law 84-485, total reverues availabLe for <br />repa)ml!l'1t of irrigatton assistance Ll"der the current repayment criteria almost quadr"4'le frcn $1.621 billion to <br />$6.304 billion when the 8orY'Ieville Unit is aQjed to the repayment stLdy period. As a result of the increased revenue <br />fLow, the power investment is repaid rruch earL ier in the repayment period and irrigation assistance starts IIIJCh <br />sooner ""'en the BOl"'n!ville lk'lit is incLl.ded. Hence, aLthOUlh I requirement to 2mOrtize the irrigation assistance <br />increases the totaL interest and surplus apportionnent revenues collected. the incremental increase in revenJeS fran <br />amortization fl Less when the Bonneville Unit is added to the repayment study. <br /> <br />:'For consistency and c~rison purposes, we selected the same discCllllt rate used in our prior report. The rate is <br />based on the average yieLd of rnI!Irk.etable United States securities wHh terl'l\S of 15 years or rrore reneining to <br />maturity. <br /> <br />10 <br />