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- 2 - . attendant cost increases that would result to current recipients of CRSP power, and evaluates the effect that an allocation of CRSP power would have on UP&L's rates. An allocation of CRSP power to UP&L can only be accomplished by reducing allocations to current recipients of CRSP power. CREDA members pre- sently purchase about 65% of the marketable firm electric service from CRSP. To evaluate the impacts on CREDA members, a range of scenarios was used: one which assumed that UP&L and no other new electric utility system would receive a 200 megawatt share of CRSP power, and two which assumed that if UP&L pre- vailed, all other private power companies in the CRSP marketing area would be able to purchase CRSP power. Any of these three marketing scenarios would have a substantial im- pact on CREDA members. The loss in available capacity would range from 110 to over 650 megawatts; the loss in energy could be as much as 2,584 billion kilowatt- hours per year. The rate impact would also be substantial. Replacing any losses in CRSP service with new generation facilities or through contracts with other utilities is estimated to cost CREDA members as much as $101,750,000 ~year. In contrast to the enormous impact that a reduction in allocations would have on current recipients of CRSP power, the cost savings to UP&L for a corresponding allocation is estimated to result in average rate decreases of only .06 to .24 cents per kWh. Even if these potential savings were to benefit only residential and commercial customers, the projected rate decreases would be only .23 to .95 cents per kWh. However, the rates for consumers served by CREDA members would necessarily increase by up to 3.89 cents per kWh, or about 150%. Thus, the absolute and relative increases in rates is estimated to be many times greater for the retail utility systems within the CREDA membership than the corresponding rate decreases that might be received by some of UP&L's consu- mers. The R. W. Beck report also contains an analysis relating to the his- torical perspective of the reliance of CREDA members on CRSP power. This analysis indicates that while CRSP electricity now seems inexpensive, the CRSP electricity was originally a more expensive resource than alternative generation. The extra cost paid by CREDA members for CRSP electricity was approximately $7,000,000 from 1963 to 1968. By 1989, over half of the federal investment in CRSP facilities will have been paid by its existing customers. Despite their earlier investment in the CRSP facilities at a substantial premium, CREDA mem- bers and other existing customers of CRSP will be forced to turn to more expen- sive alternative sources of electricity if UP&L succeeds in obtaining an allocation of CRSP power. CREDA's Response To UP&L's Legal Claims The members of CREDA believe that UP&L's constitutional claims are completely without merit. Furthermore, they believe that UP&L cannot be permitted to circumvent the preference laws. In the legal analysis prepared by