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<br />7 <br /> <br /> <br />. <br /> <br />. <br /> <br />service lives of the equipment; and while updated <br />experience may modify some of the service lives, it <br />is unlikely that there would be a significant change. <br />Western and the Bureau of Reclamation are currently <br />in the process of updating replacements. <br /> <br />7. M&I water rates and irrigator's ability to repay <br /> <br />Some customers suggested that M&I rates should be raised <br />when power rates are increased and that the irrigator's <br />ability to repay should also be revised at the same <br />time. The M&I rate for water from main-stem CRSP <br />reservoirs was set by Bureau of Reclamation policy to <br />recover construction costs allocated to M&I water plus <br />contingencies and O&M. The rates are fixed for the term <br />of the contracts. Upon the expiration of these contracts, <br />the need for changing the rates will be explored. The <br />M&I rates for participating projects are set to repay <br />their allocated costs plus O&M. All contracts for <br />irrigation water on participating projects require the <br />water users to repay a fixed amount of investment plus <br />operation, maintenance and replacements (OM&R). The <br />irrigators and participating projects' M&! water users <br />automatically pay any increased costs. of OM&R. <br /> <br />8. Reserves <br /> <br />One of the customers suggested that the amount assumed <br />for reserves is too high. The reserve assumed for the <br />rate study was 10 percent of the load. The Western <br />Systems Coordinating Council (WSCC) power supply design <br />criteria recommends that reserve capacity should meet or <br />exceed at least the sum of the capacity associated with <br />the two largest risks or the largest risk plus 5% of <br />load. A comparison between the reserves, as used in <br />the CRSP rate study and the WSCC standard for the year <br />1990, is as follows: <br /> <br />Rate Study Reserves - 144 MW <br />WSCC Standard - 216 MW <br /> <br />From this comparison, it appears that the reserves as <br />used in the rate study should not be reduced. <br /> <br />9. Extraordinary O&M expenses <br /> <br />One customer suggested that the extraordinary O&M <br />expense in the rate study in FY 1979 at Glen Canyon <br />