Laserfiche WebLink
<br />^11'~~ I~ <br />'V-& '''~'~ <br /> <br />D ' R . A ' F ' T <br /> <br />/iZ.. <br />Cl::t.cta' 5, 1933 <br /> <br />P:\User\Thomas\95Rate\LonqTerm' <br /> <br />firm power rates, <br /> <br />II, Do not 'all'ow the funding of 'nonreimbursable environmental expenses to <br />affect ,the firm ,power rate. This option may, be impossible. because non- <br />power revenues coming into the Basin Fund might not be sufficient to cover <br />the considerable environmental expense, <br /> <br />III, View the funding of environmental expenses as a cash-flow issue, rather <br />than a power repayment issue, This would be done by providing funding <br />from the Basin Fund, regardless of the source of those funds, When the <br />demand fQr spending on environmental work reduces the Basin Fund's balance <br />below an allowable minimum. the difference would be added to the CRSP PRS <br />as a -revenue requi rement, It woul d then be a 11 owed to impact the fi rm <br />'power rate, Credit 'applied to investment assigned to power for repayment <br />would be limited to the aadditional amount of money required to be put <br />into the Basin Fund to increase it to the required minim~m balance, <br />'(-OR- As a variation for recording purposes in the PRS. any amounts needed <br />for funding required from power customers could be handled as an adder the <br />same as described above for cash flow, Western would continue to record <br />only the obl igations in the PRS that are requi red to be paid by power <br />revenues, However. full credit for all amounts paid by power customers as <br />is presently done. including the additional amounts paid, This would <br />assure that that the additional amounts paid would be applied to the <br />repayment of investment repayment requirements, <br /> <br />Recommendation <br /> <br />. Option III is recommended, It should be understood that the display of a <br />deficit in the CRSP PRS is an indicator that the firm power rate is too <br />low. and revenues are not covering all required obligations, Whenever a <br />deficit appears in the CRSP PRS, nonreimbursable environmental expenses or <br />the balance of the deficit. whichever is less, will be treated as an <br />operating expense in the PRS, <br /> <br />1st Review: May 5. 1993 <br />2nd Review: May 7, 1993 <br />3rd Review: May 11. 1993 <br />4th Review: May 13, 1993 <br />5th Review: August 19, 1993 <br />6th Review: August 23. 1993 <br />7th Review: Sept, 29. 1993 <br /> <br />2 <br />