WSP03769

• File Number: 8220.100.50
• Description: CRSP - Power Rates
• Basin: Colorado Mainstem
• Date: 9/1/1975
• Author: USDOI/BOR
• Title: CRSP and Participating Projects - Tenative Power Rate Ajustment
• Water Supply Pro - Doc Type: Publication

Table E-l shows that as of the end of fiscal year 1974, power revenues
had paid all the operating costs and had repaid approximately $48 million
of the power capital and replacement investments, and that future power
revenues will be sufficient, with application of the new rates starting
in January 1977, to pay the operating costs each year and to complete re-
payment of the capital and replacement investments within the periods and
to the extent required by the authorizing legislation.

Figure E-l shows graphically in stairstep form for the period fiscal year
2010 through 2059 the cumulative power and surplus M&I revenues required
for repayment of the capital and replacement investments. Starting in
fiscal year 1988, revenues for repayment of the replacement investment
will be needed, and these will accumulate to about $64 million by fiscal
year 2010, the starting point of the graph. Revenues for repayment of
the capital investment costs will be required starting in fiscal year 2013
for the CRSP irrigation allocation, in fiscal year 2014 for the power
allocation, and in fiscal year 2016 for participating projects. Curve
1 of Figure E-l shows the cumulative revenues which would be available
for repayment of the capital and replacement investment costs, based on
use of the original power rate R4-Fl from 1963 through March 1974, and
use of the 1973 approved UC-Fl ?ower rate from April 1974 through fiscal
year 2059. As can be seen, these revenues would be insufficient to
provide the needed revenues, being short in the critical year of 2046 by
about $197 million. Curve 2 shows the cumulative revenues which will be
sufficient to provide the needed revenues by assuming a second rate
increase starting in January 1977. It is noted that, in the most critical
year of 2046, the power and M&I revenues available exceed the required
amount by about $4 million. This is because of rounding off the monthly
demand charge to the nearest one-half cent.

In determining the power and M&I revenues required for repayment of the
participating projects, the remaining revenues after repayment of the
power, M&I, and storage units irrigation allocation are handled in the
following fashion:

(1) Each State is first apportioned the net power revenues
from participating projects within the State plus the
revenues from sale of the State's M&I water.

(2) The remaining storage unit net power and M&I revenues
are apportioned among the States according to the
percentage formula contained in the authorizing
legislation, which is as follows: Colorado 46 percent,
New Mexico 17 percent, Utah 21.5 percent, and Wyoming
15.5 percen to

In apportioning power revenues to Wyoming from the Seedskadee Project
powerplant and to Utah from the Central Utah Project powerplants, it has
been assumed that no such revenues will be apportioned to Wyoming from

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