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<br />01209 " <br /> <br />HZ <br />O::td:fr 5, 19)3 <br /> <br />D ' R ' A . F . T <br /> <br />P:\User\Thomas\95Rate\LonQTerm <br /> <br />Lana. Term Manitarina and Research <br /> <br />Issue <br /> <br />. What is required for the funding of the long,term monitoring and <br />associated research for Glen Canyon Dam's (GCD) impact on Grand Canyon <br />National Park and the Glen Canyon National Recreation Area, and how will <br />it affect SLCA/IP firm power rates? <br /> <br />Background <br /> <br />. Title ,XVIII. the Grand Canyon Protection Act (GCPA) .'of the Reclamation <br />Projects Authori zati on and Adjustment Act Of 1992 (RPAAA)' requi res the <br />Secretary of the Interior to establish and im~lement long-term monitoring <br />and necessary r:esearch to oversee the impact of GCD, on Grand Canyon <br />Nat i ona 1 Pa rk 'and the Gl en Canyon' Nat i ona 1 Recreat i on Area, ' , <br /> <br />. The GCPA authorizes the use of revenues received from the sale of electric <br />power and energy for initial funding of these studies and long,term <br />monitori ng, <br /> <br />. Funding provided for nonreimbursable expenses from power revenues will be <br />credited towa rd repayment of outstandi ng investment costs assi gned to <br />power for repayment, <br /> <br />. Estimates made in FY 1993 assume that long,term monitoring will cost <br />approximately $3 million per year through the indefinite future, while <br />research activities are predicted to cost $3 million per year through FY <br />2010, <br /> <br />Sens it i vit i es <br /> <br />. Customers and envi ronmenta 1 interests are anti ci pated to assume that <br />making most of the expense of the monitoring and research program <br />nonreimbursable will result in a rate decrease, However, the program may <br />still need to be funded from power revenues, which requires rates to be <br />high enough to cover the annual withdrawal from the Basin Fund, <br /> <br />Options <br /> <br />I, Fund the environmental expenses solely through power revenues, This would <br />requi re showi ng each dollar spent on nonreimbursable envi ronmenta 1 expense <br />as a revenue requirement in the CRSP PRS, Each dollar so funded would be <br />applied in the same year to the repayment of investment, This option <br />could be implemented easily, and would result in the highest impact on <br /> <br />1 <br />