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of Department of the Interior Secretarial Order No. 2929, current inter- est rates were applied to debts incurred after 1970. These debts were classified in two categories -- annual expenses and deferred interest. In 1971 and 1972, debts of the "annual expense" and "deferred interest" types were incurred. In the years 1973 through 1979, power revenues were sufficient to pay annual operating expenses but not the interest, and the debts fell into the "deferred interest" category. In 1980, power reve- nues were sufficient to pay annual operating expenses and interest costs, to repay the debts incurred in 1971 and 1972 for annual expenses, and to repay part of the "deferred interest" debts. For future years (1981 and after), power revenues over and above the amount needed to pay annual operating expenses and interest costs are to be appl ied first to repay with interest the debts incurred in the "deferred interest" category, starting with the highest interest bearing cost. Thereafter, power revenues are to be app 1 i ed to the repayment of replacement and original investments within allowable time periods. In order to derive the lowest rate possible, the highest interest bearing costs are to be repaid first, if such can be done without deferring repayment of lower interest bearing costs beyond legally acceptable time 1 imits. a. Repayment Study Using Present Power Rate. Figure 3 shows the cumulative results for the 1980 through 2034 period of a repayment study using the present power rate with the same mode of operation as in Option A. Figure 3 shows that the cumulative power revenues are sufficient to pay the annual expenses, but will pay only a portion of the interest costs and will repay none of the original or replacement investments. Figures are not included based on the present rate with the same modes of operation as in Options Band e. Such figures, although differing from Figure 3, would also show that the power revenues would pay the annual expenses and part of the interest costs and would repay none of the prin- cipal and replacement investments. e. Repayment Studies for Options A, B, and e. Figure 4 shows the cumulative results of a repayment study for Option A. This Figure shows that the power revenues will be sufficient to pay all operating costs and to repay all cost sass igned to the power funct ion with i n a llowab 1 e time frames. Figures for Options Band e are not included. Such figures, although differing from Figure 4, would also show that the power revenues would pay all operating costs and repay in a timely fashion all costs assigned to the power function. Tables lA, 1B, and Ie are copies of the power repayment studies for Options A, B, and e respectively. The studies include explanatory notes for each column, The following para- graphs provide discussions of the basic data used in the repayment studies, , D. Power Sales. Project capacity and energy are primarily depen- dent on cl imat ic conditions which affect both the project water supply and its use for irrigation. Power operations are secondary to irrigation in accordance with the power facilities authorizing legislation which states in part". . . the use of the dam, project works, and water supply 13 \, . .. -, ,:' ; 'i ~ 'J