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<br />01222 - <br /> <br />u <br /> <br />Cttd:er 6. m3 <br /> <br />D.R.A.F.T <br /> <br />P:\User\Thomas\95Rate\Rates <br /> <br />Construction. <br /> <br />Issue <br /> <br />. What effect will construction cost changes have on the SLCA/IP firm power <br />rates proposed to become effective in FY 1995? <br /> <br />Background <br /> <br />. Based on the FY 1994 Congressional Budget (CB), construction could have a <br />significant impact on the. proposed rate. However: Western's CRSP <br />construction budget request for the 5 year period FY 1994 through FY 1998 <br />is presently estimated to be significantly less than that requested in the <br />FY 1994 CB. <br /> <br />. The significant changes between the FY 1994 CB and the new figures are as <br />follows: <br /> <br />A. Navaio Transmission Proiect (NTP) It appears that the NTP will not <br />be completed until after FY 1998 which is outside the 5-year window. <br />It has therefore been removed from the PRS. <br /> <br />B. Glen Canyon - Navaio 500-kV Interconnection. It now appears that <br />this prOject will be completed in two phases. A new 500-kV <br />switchyard at Glen Canyon will not be built until after NTP or some <br />other equivalent project brings additional power into the Glen <br />Canyon Substation. . Accordingly. the first phase of the project. to <br />be completed in FY 1996. will require approximately $8 million in <br />Western funds to make an interconnection between Glen Canyon and <br />Navajo Generating Station. The second phase, a new 500-kV yard at <br />Glen Canyon. would be completed in FY 2000 or beyond. The <br />completion of the first phase should be included in the rate study. <br />This interconnection provides for increased reliability of the <br />regional transmission system. enhanced stability of both Glen Canyon <br />and Navajo power plants, as well as potenti a 1 for addi t i ona 1 <br />whee 1 i ng, interchanges. sales. and purchases provi di ng fi nanci a 1 <br />benefits to Western and its customers. <br /> <br />Blue Mesa Substation Staqe 03 Additions Expansion of <br />the Blue Mesa Substation is necessary to provide a new <br />control building, replace circuit breakers. relocate <br />controls from the powerhouse to the new control <br />building. and relocate the 115-kV takeoff structure to <br />a new location away from falling rocks. This project <br /> <br />1 <br />