WSP02609 - Laserfiche WebLink

Home Browse Search

equivalent service could be obtained elsewhere. In all three options, the CRSP would be providing firming capacity in the summer, which in the study has been estimated to be 6,620 kW for the 1982 through 1989 period. In Option C, the CRSP would also provide firming capacity in the winter, estimated to be 7,852 kW for the 1982 through 1989 period, There would probably be considerable savings to RGP due to energy banking by the CRSP and due to capacity purchases from the CRSP, but data to quant ify such savings are not readily available. The sale of energy to RGP at the CRSP firm rate, as proposed in Option A, will have an adverse effect on the CRSP because the CRSP would be pur- chasing energy on the open market for 20 to 30 mills and reselling it to RGP for 4 to 5 mills. This will result in an annual expense to the CRSP of about $200,000 _u an amount roughly equal to the annual savings to tne RGP. The sale of CRSP capacity to the RGP, as proposed in all three options, will not be detrimental to CRSP, since CRSP has adequate capacity without the need to purchase and the selling rate for CRSP capacity would be the same whether the capacity is sold to RGP or to others. The banking of energy for the RGP, as proposed in Options Band C, is not expected to have any quantifiable effect on the CRSP because of the relatively small magnitude of the energy to be banked. VII. POWER REPAYMENT STUDIES This section includes discussions of: repayment criteria; the results of repayment studies using current and proposed power rates; and basic data used in the repayment studies. A. Repayment Criteria. Repayment requirements are dictated by the authorizing act for power facilities, other applicable acts, and the Department of Energy policies, chiefly Departmental Order RA 5120,2. RGP power revenues must be sufficient to: (1) pay all annual power operating expenses; (2) pay all annual irrigation operating expenses in excess of those paid by the irrigators; (3) repay power replacement costs with interest within the service 1 ives of the equipment; (4) repay all power investment costs with interest within 50 years after the in-service date of the power facilities; and (5) repay without interest within a 50-year period all irrigation investment costs not assigned to be repaid by the irrigators. A 50-year time period was allowed for the irrigators to repay their assigned portion of the irrigation investment costs, and par- agraph 12.b(4) of Order RA 6120.2 allows a similar period for power to repay its assigned portion of the irrigation investment costs. In the historical years 1941 through 1950, power revenues were suf- fic ient to pay the annual operat ing expenses and interest costs and to repay some of the power investment costs. In most of the remaining his- torical years, 1951 through 1980, power revenues were not sufficient to pay the annual operat ing expenses and interest costs. For the 1951 through 1970 period, the deficits were capital ized and added to the investment costs to be repaid at 3 percent interest, Following issuance . .14' - \. I _' ~." L.J 12