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01237 . D-R-A-F-T. December 20, 1993 - Treatment of Depletions ln Power Projections Issue . Western is examining .some of the past.practices and assumptions used to develop long-range annual power projections for the CRSP and SLCA/IP PRSs. One component of concern is treatment of Upper Basin water depletions after FY 2010. Background In the rate process for the October 1, 1990. firm power rate adjustment, firm power customers objected to the inclusion within the PRS of water depletions (water not available for generation) up to the limits set in the Upper Colorado River Compact of 1949. These are depletions for which no specific use has yet been developed. and are over and above those required for the participating projects authorized by Congress and planned state construction. The September 12. 1990, Federal Register Notice announcing that rate adjustment (Vol. 55, No. 177), page 37.535 addressed both customer and state's concerns and is quoted extensively hereafter. Section 6.a. of the comments states: ". ..Each Upper Basin State may use its water allocation as it desires. The CRSP participating projects are being developed by the Federal Government to partially fulfill this purpose. Additionally, each Upper Basin State has separate, non-Federal water projects completed, under construction, in the planning stages. or anticipated at some future date to use the remainder of its allocation of Colorado River water..." "...Not all Upper Basin States have developed plans for the use of their full allocations of Colorado River water. ..n ".. .Western has determined that depletions above those required for water development projects likely to be in place by FY 2010 should not affect the current proposed power rate. The Upper Basin States are not opposing this concept. However. they have expressed concern that such an assumption could be used as a precedent by those opposing additional water development in the Upper Basin. It is emphasized that the water is allocated to the Upper Basin States by the Colorado River Compacts and that, as the States develop consumptive uses for it, the related depletions will again affect the Integrated Projects firm power rates." The Firm power customers were also concerned that the depletion schedule match the repayment schedule shown in the PRS, and Section 6.b. of the comments in the above mentioned Rate Order states: . "... that the depletion schedule should match the repayment schedule, so that depletions for any participating project scheduled for repayment beyond the CRSP PRS ratesetting year should not be allowed to impact the CRSP rate.