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01220 D-R-A-i"-T L2 P:\Ueer\Thomae\95Rata\Irriqata October 5. 1993 CUP Irriqation Assistance Costs Issue . What costs for the Central Utah Project's (CUP) Bonneville Unit should be included in the SLCA/IP PRS? Background . The Reclamation Projects Authorization and Adjustment Act of 1992 (RPAAA) authorized the completion of the CUP. All previously-planned portions of the CUP not specifically mentioned in the RPAAA as not being funded are planned to be funded and built. . The' Central Utah. Wat.er Conservancy District (CUW.CD) WilS responsibility fo"r completing the- authorized construction on the Bonneville Unit Irrigation and Drainage (I&D) System by FY 1998. given CUP's' . RPAAA. requires that ".. .not later than one year after the date on which the Secretary declares the Central Utah Project to be substantially complete, the Comptroller General of the United States shalf conduct an audi t of the allocation of costs of the Centra1 Utah Project to irrigation, municipal and industrial, and other project purposes and submit a report of such audit to the Secretary and to the Congress. The audit shall be conducted in accordance with regulations which the Comptroller General shall prescribe not later than one year after the date of enactment of this Act." It is expected that the Definite Plan Report (DPR) which must be updated by the District prior to additional obligation or expenditure of CUP funds, will allocate costs to project purposes in accordance with the regulations prescribed by the Controller General. . Reclamation prepared a supplement to the CUP's Definite Plan Report (DPR) in FY 1988 which updated project cost allocations. Since then, the costs allocated to irrigation and that portion of repayment assistance required from the Basin Fund have been indexed up each year Cto account for construction cost increases) for inclusion in the annual SLCA/IP PRS. The "A" costs are irrigation's "sunk" costs for existing construction. The "811 costs are considered to be deferred, and do not presently influence the rate. . Until the CUWCD completes a new DPR and receives allocation, it will not be known what costs irrigation and what portion of those costs will the Basin Fund. approval for a new cost will be allocated to require assistance from Sensitivities . Customers will want to prevent the "Bn costs from going into the rate base until a reallocation takes place. They hope the reallocation will reduce the costs assigned to power for repayment, and possibly the impact of CUP on the rate. . Other, non-customer, interests will want the "B" costs included in the rate base as quickly as possible, to deliberately increase the rate. Optione 1