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4-16 Chapter 4 - Reallocations Table 4-9 Comparison of Alternatives to Obtain User Cost Item Cost Lost Hydropower Benefits $3,339,000 Lost Hvdropower Revenues $1,867,000 Replacement Cost of Hvdropower $3,339,000 Maximum Costs Associated with Lost Flood Control $3,856,111 Updated Cost of Storaqe $8,968,692 Based on this analysis, the updated cost of storage governs the cost of storage to the user. This is not unusual. While it can be costly and time consuming to compute the other costs, it is necessary.) 5. Test of Financial Feasibili tv. (Compare the cost of the Federally reallocated storage to the most likely alternative determined in above paragraph 3b. The comparison should be based on the appropriate interest rate and repayment period and take into consideration all costs the user would incur to obtain comparable quantity and quality of water to the same location; i.e., consider treatment and transmission costs if significantly different.) Exarnp~e. As a test of financial feasibility, the annual cost of the rE~allocated storage (determined in paragraph 4f), is compared to th8 annual cost of the most likely, least costly, alternative that would provide an equivalent quality and quantity of water which the local interests would undertake in absence of utilizing the Federal project. (This example is from the "Integrated Storage Reallocation Report and Environmental Assessment for Stockton Lake, Missouri", prepared by the Kansas City District, August 1993.) Table 4-10 presents the cost of water supply storage space from Stockton Lake expressed as an annual charge using an 8.25 percent interest rate amortized over the remaining 77 year project life (100 year life from date first project purpose placed in operation, (factor 0.0826847), plus annual operation, maintenance, and major replacement cost (OM&R) costs for the storage. The table also presents the estimated annual cost for the most likely non-Federal alternative, Lake Webster West, a single purpose water supply lake located about 10 miles east of Springfield, Missouri. Lake Webster West would have an estimated dependable yield of 30 MGD with a 2% chance of shortage. The cost is expressed as an estimated annual charge using an 8.25 percent interest rate and a 77 year project life.