WSP01756

• File Number: 8220.129.D
• Description: Upper Gunnison Project
• State: CO
• Basin: Gunnison
• Water Division: 4
• Date: 8/1/1973
• Author: USDOI - BOR
• Title: Concluding Report - August 1973 - Upper Gunnison Project - Part 1 of 2
• Water Supply Pro - Doc Type: Report/Study

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CHAPTER III

Benefit-cost ratio

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OHIO CREEK UNIT

Benefits of the unit compare with the costs of development in ratio
of about 1.54 to 1.

Financial Analysis

Under an assumption of Federal development of the Ohio Creek Unit as
a participating project of the Colorado River Storage Project, all costs
of the unit would be allocated to municipal and domestic water. All costs
except costs of investigations prior to authorization of the unit would be
repayable to the United States within a period of 50 years fOllowing com-
pletion of construction. Repayment would include interest on the unpaid
balance remaining from year to year. The interest rate applicable would
be determined at the time construction of the unit began, but a rate of
3.649 percent has been assumed for the analysis. The Upper Gunnison Water
Conservancy District would contract to repay the costs and operate the
unit. The district would probably obtain the needed repayment revenue
from water users, although some might come from ad valorem tax revermes.

The following tabulation summarizes the probable repayment of costs
related to the development of 4,000 acre-feet of municipal water under an
assumption of Federal development.

Construction costs
Less investigation costs prior
to authorization
Reimbursable construction costs
Interest during construction (3.649
percent interest)
Repayment obligation
Annual amortization payment--constant
for 50 years at an assumed 3.649
percent interest rate
Annual operation, maintenance, and
replacement costs
Annual charge to conservancy district
Total
Per acre-foot
Per 1,000 gallons

21

$2,385,000

- ~6,000
2,2 9,000

106,000
2,395,000

105,000

11,500

116, 500
29.10
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