WSP02609

• File Number: 8507
• Description: Rio Grande Project
• State: UT
• Basin: Rio Grande
• Date: 10/1/1981
• Title: Rio Grande Project - Proposed Power Rate Adjustment
• Water Supply Pro - Doc Type: Report/Study

studies is greater than the RGP summer obligtions, so the studies indi-
cate a net RGP surplus energy sale for future years in the winter season.
A repayment study of Option B indicates the need for a new composite rate
of 30.02 mills per kWh at 58.2 percent load factor, with components of
$6.38 per kW-month and 15.01 mills per kWh.

Option C is the same as Option B except that it includes in addi-
tion the sale of 24 MW winter season firm capacity with return of energy
and the purchase of winter season firming capacity from CRSP. A repay-
ment study of Option C shows the need for a composite rate of 21,08 mills
per kWh at 58,2 percent load factor, with components of $4,48 per
kW-month and 10.54 mills per kWh.

Following are the power rates needed for the three options:
POWER RATE NEEDED
Capac ity Energy Compos ite
$ Per Mill s Mi 11 s per kWh
Opt ion kW-Month Per i<Wh (!l 58.2% L.F.
A 5.585 13.14 26.28
B 6.380 15,01 30.02
C 4.480 10.54 21.08

Figure 2 shows the past rates which have been put into effect,
the past rates needed for project repayment, the present rate, and the
power rate needed for each of the three options. After publ ic discus-
sions of the three options and other possible options, and after review
of public comments, Western will decide on a proposed rate,

VI. SAVINGS TO RGP DUE TO ASSISTANCE FROM THE CRSP

The savings real ized by the RGP due to purchases from CRSP would be the
difference between the c"ost of capac ity and energy purch ases from the
CRSP and the cost of capacity and energy purchases from alternat ive
sources. From past trends in purchased energy prices, the projected 1982
through 1989 price for purchase of non-firm energy from other sources is
estimated to be about 24 mills per kWh. No data are readily available as
to the capacity purChase price from possible alternative sources.

In Option A, the 1982 through 1989 average annual savings to RGP due to
purchases of energy from CRSP would be about $212,000 based on the pur-
chase of 11,262,000 kWh at the estimated market price of 24 mills, as
compared to the purChase of the same amount of energy from the CRSP at 4
mills in 1982 and 5.3 mills in 1983 through 1989.

I n Opt ions Band C, the CRSP wou 1 d be prov id i ng energy bank i ng serv i ce
for the RGP so that RGP winter season energy generation could be used to
help meet summer season contractual obligations, and it is unlikely that

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