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some costs to finish the Elephant Butte sediment survey which was started in Fiscal Year 1980. Similar to the power O&M costs in Column 4 of the power repayment study, the projected irrigation O&M expenses were esca- lated each year through Fiscal Year 1982, kept constant thereafter through 1984, and decreased in Fiscal Year 1985 and after because of con- version to unattended operation. Following is a tabulation of future "Other Expenses" in thousands of dollars: Fiscal Year 1981 69 F i sca 1 Year 1982 65 Fiscal Year 1983 65 Fiscal Year 1984 65 Fiscal Year 1985 & After 61 G. Replacements. Prior to 1963 the RGP used a replacement reserve account ing method. From 1963 to 1965 depreci at ion was computed using a straight line method and from 1966 through 1972 depreciation was computed using a compound interest method. Beginning in Fiscal Year 1973, future replacement costs were capitalized and added to a replace- ment account. The rep 1 acement cost is added to the "A llowab 1 e Unpaid Investment" of thi s account, then subtracted out at the end of its est i- mated service life. The methods used through Fiscal Year 1972 projected the replacement costs based on the original installed cost of the item. Beginning in Fiscal Year 1973, the replacements have been indexed to the current cost of the original item. No future escalation has been included. Replacement costs are shown in columns 15 through 17 of the repayment study. Projected repl acement costs for 5 future years are taken from the current budget documents. Replacement costs for years thereafter are based on investment costs indexed to the current study- year levels and on the estimated service 1 ife of each unit of property included in the electric plant investment. The estimated service life is based on the experience of the Bureau of Reclamation with similar facili- ties. New replacement factors have recently been determined, but are not yet incorporated into the replacement computer program available for use in the RGP power repayment stud i es. However, the new factors are not significantly different from the old and the use of the new factors in 1 ieu of the old would have little effect on the power rate needed for the RGP. Current interest rates are appl ied to replacements. The projected cumulative cost of replacements at the end of the study period (2034) is $8,216,246. . . H. Interest Rates. For the period 1941 through 1970, the inter- est rate on investments' and deficits was 3 percent, as provided for under the Reclamation Project Act of 1939. After 1970, the interest rate for new investments in replacements and additions and for any deficits was the current rate -- the rate in effect the year of the replacement, addi- tion, or deficit, based on the formula contained in Department of Energy Order RA 6120.2 (formerly Department of Interior OM 730.3). Following is a tabulation of the interest rates used for each year of the study: J li'-' n 1- 4" " \J V'- 29