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Rate of Repayment During FY 1976 a lolal 01 $23 million was applied toward repayment 01 the Federal Invesl- ment in the Colorado River Storage Project and Participating Projects. Total repayment received \0 date amounts to $91 million, which is 12 per- cent althe $750 million completed plant-in-ser- vice and 4 percent of the $2'1, billion projected lolal reimbursable Federal investment in the authorized storage Units and participating proj- ects In addlllon \0 the amount applied to repay- ment. the project earned revenues sulhcient 10 pay all operating costs and currenl interest and replacement costs_ Operating costs 01 participat- ing projects which have been turned over to the water conserl/ancy districts lor operation were paid by the respective conservancy districts Nearly one-third 01 the projected Federal invest4 menl was in service as of the end of the liscal year Power sales produced 96 percent of the net revenues during FY 1976. These power revenues were applied toward the power Invest. ment in the storage units and participating prol. ects About 11 percent of the estimated power investment has now been repaid. The $22,5 mitllon repaid in FY 1976 Is about a 30 percent increase In net power revenues from FY 1975. During FY 1976 more than a hall million dollars In repayment revenue came lrom municl4 pal and industrial water sales Irom Glen Canyon and Navajo Units This was all applied toward repayment 01 the M&I Investment in the storage units. An additional $102,000 in repayment revenues came Irom municipal and industrial water sales from live participating projects. This amount was applied to repayment 01 M&llnvest. ments in the participating projects. Revenues received from the Irrigators 01 eight participating projects, amounting to $222,000 in FY 1976, have been applied to repayment of irrigation investment in the participating projects. Repayment contracts have been e)(ecuted lor 14 participating projects to date. 01 the 24 authorized participaling projects, 13 have been constructed or are under construction. Two have not yet started construction but have e)(ecuted repayment contracts, three are nearing e)(ecution of repayment contracts, one has been postponed indefinitely and the remaining five are in the advance planning stage. In order to provide revenues sulficient to pay annual operating costs of the storage units, to provide for replacements, to pay interest charges, to repay reimbursable costs of the authorized storage units, to provide needed repayment assistance for authorized participating projects within the time limits prescribed by law, and to pay specified salinity costs, it is necessary to increase the CRSP power selling rate. It is proposed to increase the current power rate by about 7 per. cent in January 1977, and to increase that rate by approximately another 24 percent beginning in fiscal year 1980. The proposed liscal year 1980 rate would be about 36 percent above the original CRSP power rate which was in effect prior to April 1974. These increases are rellected in Exhibit A. Reasons lor the projected increase include the inflationary rise in present and pro- jected power system operating costs, estimated higher costs to complete construction of the authorized storage unit and participating projecl facilities, reduction in estimated power revenues because of projected acceleration of water deple. tions, inclusion 01 future payment trom power revenues 01 a portion of the estimated construc- tion and operating costs 01 four authorized Col- orado River Salinity Control Projects (P.L. 93.320, 88 Stat. 266), reductions in estimated power revenues because 01 the proposed establishment 01 a rate lor project irrigated pumping power less than the commercial rate, and the proposed addi. tions of wheeling charges for Ihe flow of CRSP power over the transmission systems 01 the Parker-Davis Project and the Pick.Sloan Missouri Basin Program Projections using current estimates 01 CRSP costs, construction schedules and reve- nues from power sales (including proposed rate increase!. municipal and industrial water sales, payments by irrigators. ad valorem laxes and miscellaneous revenues, shOw that payment of the reimbursable costs of the authorized Colorado River Storage Project and Participating Pro,ects can be accomplished within the authorized repay. ment periodS 33