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<br />in order to pay future operating expenses and to repay all costs assigned <br />to be repaid by power revenues. Common to all options is the assumption <br />that, after fiscal year 1989, all RGP generated energy will be sold as <br />firm energy and there will be no firming energy purchases or surplus <br />energy sales. <br /> <br />Option A is based on the continuation of existing operating proce- <br />dures and market ing po 1 icy, i. e., the sale of ~4 MW summer season firm <br />capac ity and accompanyi ng energy, the purch ase of summer season firm i ng <br />capacity and energy from the Colorado River Storage Project (CRSP), no <br />sale of winter season capacity, and the sale of RGP winter season energy <br />generation as surplus energy. A repayment study of Option A indicates <br />the need for a new composite rate of 26.28 mills per kWh at 58.2 percent <br />load factor. For the purpose of minimizing discrimination among power <br />users, equal costs at 58.2 percent load factor have been assigned to the <br />capacity and energy components, resulting in a rate of $5.585 per kW- <br />month and 13.14 mills per kWh. <br /> <br />Option B is based on the sale of 24 MW summer season firm capacity <br />and accompanying energy, the purchase of summer season firming capacity <br />from the CRSP, and system operat ions whereby RGP energy generat i on is <br />integrated with the CRSP on an annual basis through an energy interchange <br />or "banking" arrangement. Any annual RGP energy generation in excess of <br />RGP summer season obl igations would oe sold as surplus, and any annual <br />deficiency in RGP energy generation would be made up by purchases from <br />the CRSP at the average annual price paid byCRSP for such energy. The <br />est imated future annua 1 RGP energy generat i on used in the repayment <br />studies is greater than the RGP summer ob1 igtions, so the studies indi- <br />cate a net RGP surplus energy sale for future years in the winter season. <br /> <br />Option C is the same as Option B except that it includes in addi- <br />tion the sale of 24 MW winter season firm capacity with return of energy <br />and the purchase of winter season firming capacity from CRSP. A repay- <br />ment study of Option C shows the need for a composite rate of 21.08 mills <br />per kWh at 58.2 percent load factor, with components of $4.48 per kW- <br />month and 10.54 mills per kWh. <br /> <br />In each of the three .options the RGP relies on considerable assist- <br />ance from the CRSP. I n Opt ion A, there wou 1 d be a cost s av i ngs of about <br />$200,000 annually to RGP due to purchases of firming energy from the CRSP <br />at the CRSP firm power rate. In options Band C, the CRSP would be pro- <br />viding energy banking to the RGP so that RGP winter season energy genera- <br />tion cotIld be used to help meet summer season contractual obligations. <br />In all three options, the CRSP would be providing firming capacity to the <br />RGP. The firming energy provided by the CRSP to the RGP in Option A <br />would represent an "out-of-pocket" expense of about $200,000 annually to <br />the CRSP. <br /> <br />Western Area Power Administration (Western) will hold a publ ic <br />information forum to discuss the three options and other possible options <br />for rate adjustments and to answer questions. A public comment forum <br />will be held thereafter, at which interested persons may submit written <br />or oral comments. <br /> <br />2 <br /> <br />,Y.J!4 . ,) <br />