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<br /> <br />, <br /> <br />" ' <br /> <br />United States Department of the Interior <br />BUREAU OF RECLAMATION <br />UPPER COLORADO REGIONAL OffiCE <br />P,O, BOX lIl68 <br />SALT LAKE CITY, UTAH 84147 <br /> <br />IN R.EPL Y <br />REFER TO, <br />UC-446 <br /> <br />Memorandum <br /> <br />To: Assistant Commissioner - Resources Management <br />~\~0 Attenti on: 0-5441 <br /> <br />Fro~ Regional Director <br /> <br />Subject: Straight Line Repayment of Irrigation Costs From Power Assistance <br />(Your Memorandum of August 25, 1989) (Repayment) <br /> <br />Introduction and Background <br /> <br />'The Colorado River Storage Project (CRSP), authorized on April 11, 1956 <br />(Public Law 84-485, 70 Stat, 105), is a program to develop, and make available <br />for use, the water resources of the Upper Colorado River Basin. CRSP is <br />composed of four multipurpose storage units, usually referred to as the mainstem <br />units, and 20 participating projects, The project benefits the States of <br />Colorado, New Mexico, Utah, and Wyoming. <br /> <br />Section 5 of the CRSP Act authorized a separate fund in the Treasury of the <br />United States (Treasury) to be known as the Upper Colorado River Basin Fund <br />(Basin Fund), Since 1957, all revenue in the Basin Fund collected, in <br />connection with operation of CRSP facilities in excess of operating needs, has <br />been paid annually to the general fund of the Treasury to return costs allocated <br />to: (1) power, (2) municipal water supply, (3) interest thereon, (4) irrigation <br />of each initial storage unit, and (5) subsequent to enactment of the Colorado <br />River Salinity Control Act of June 24, 1974 (Public Law 93-320, 88 Stat, 266). <br /> <br />Revenues in excess of the above-mentioned expenditures are apportioned to each <br />of the Upper Basin States, Section 5(e) of the CRSP Act itemizes the <br />apportionment of remaining power revenues as follows: Colorado, 46,0 percent; <br />Utah, 21,5 percent; Wyoming, 15.5 percent; and New Mexico, 17,0 percent. <br />Apportioned revenues are then used by the Upper Basin States to help repay costs <br />of participating projects that have been allocated to irrigation, and irrigation <br />costs must be repaid with a SO-year repayment requirement. <br /> <br />The power rates are established and periodically adjusted to meet all costs <br />assessed against the power system. Estimates of the timing and amount of <br />apportioned revenue payments are updated annually. Certain factors, such <br />as the amount of energy produced and marketed, operation and maintenance (O&M) <br />expenses, replacement costs, and extraordinary costs or unforeseen expenditures, <br />can influence the amount and timing of revenues available for apportionment, <br />These annual changes in the estimated timing of apportioned revenue payments for <br />