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<br />01229 <br /> <br />D - R . A - F . T <br /> <br />P:\User\Thomas\95Rate\FundRoav <br />November 19, 1993 <br /> <br />year. During this same time, Western has withheld funds from transfer to <br />the General Fund in order to have funds for operating needs. Reclamation <br />has used the money received from the Power MarKeting fund to fund their <br />operat i ng needs i nc 1 udi ng certa i n non rei mbursab 1 e expenses i nc 1 uded in <br />their O&M budget. Most of the CRSP's nonreimbursable costs are incurred <br />by Reclamation. <br /> <br />. Because the law allows for withholding money from transfer to the General <br />Fund to be used for operating needs. the financial statement which records <br />the cash transfers to the General Fund, does not adequately track the <br />repayment of power-related investment. Therefore, it is necessary to have <br />a separate power repayment study (PRS) which is the official record of <br />repayment of power related investment. <br /> <br />. Historically. only costs that were understood to be reimbursable by power <br />were included in the CRSP and SLCAIIP PRS, and the studies have not <br />included the funding of any known nonreimbursable expenses. <br /> <br />. All power-related revenues have been recorded in the PRS, and credited to <br />repayment of power-related expenses and/or investment or other investment <br />assigned to power for repayment. Reclamation's revenues from the Hoover <br />Deficiency Settlement and surplus M&I water sales are also recorded in the <br />PRS. Hoover deficiency revenue is considered a power revenue, and is so <br />treated in the PRS. Surplus M&I revenue is specifically credited against <br />irrigation investment assigned to power for repayment. <br /> <br />. The Grand Canyon Protecti on Act (GCPA) speci fi es ..... the Secretary (of the <br />Interior) is authorized to use funds received from the sale of electric <br />power and energy from the Colorado Ri ver Storage Project..... to fund <br />nonreimbursab 1 e envi ronmenta 1 expenses. but no such speci fi cat i on is <br />placed on either power or water revenues for the funding of other <br />nonreimbursable expenses. <br /> <br />. In the context of this legislation. "reimbursable" means that a expense <br />will be repaid by the entity to which it has been assigned. <br />"Nonreimbursable" means that an expense wi 11 not be repaid by any speci fic <br />entity. leaving it to be borne by the taxpayer (except to the extent it <br />becomes reimbursable during that 5-year period, FY 1993-97.) <br /> <br />Options <br /> <br />1. Fund nonreimbursable expenses from monies in the Basin Fund: Section 1808 <br />of the GCPA of 1992 states: "There are authorized to be appropriated such <br />sums as are necessary to carry out this title." Since CRSP has a <br />revolving fund. monies not transferred to the General Fund. but retained <br /> <br />2 <br />