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

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useful life and requires replacement at a cost far above its original
cost. Figure E-8 shows, for the years 1960 through 1974, the U.S. cost
indexes for labor and for construction machinery and equipment, taken
from the Engineering News Record and the United States Department of
Labor. The graph also shows the cost indexes for CRSP wageboard salaries
for the same period. It is noted that the average annual increases are
7.2 percent for United States labor costs, 5.25 percent for CRSP wage-
board salaries and 4.5 percent for United States construction machinery
and equipment costs.

"

Following is a summary of CRSP past O&M costs in millions of dollars for
the period fiscal year 1970 through 1974 and estimates for the fiscal
years 1975, 1976, 1977, and 2001, after which the cost remains constant.
The costs for other intervening years are shown in Table F-l.

1970 1971 1972 1973 1974 1975*

1976*

1977*

2001*

5.283 5.804 5.962 6.285 6.939 8.309

8.264

9.404

9.470

*Estimated

Estimates of future O&M costs are based on actual historical costs
experienced by the project and experience from all other Bureau proj-
ects. The annual O&M costs estimate for the 3 immediate future years
(FY 1975, 1976, and 1977) is reconciled to the most current official
program budget documents. The third-year estimate is continued for each
of the remaining years of the study except that additional O&M expenses
are projected for approved additions in the expected operational year
and thereafter, and subtractions are projected for years after 1977 for
the extraordinary expenses in that year. Extensive spillway tunnel
repair at Flaming Gorge and bridge road repair at Glen Canyon are
planned for that year. Taking that into account and phasing out Recla-
mation's cost of operating the city of Page offsets future increases due
to planned powerplant and transmission additions, so that the O&M
expenses for fiscal year 2001 are almost equal to those for fiscal year
1977 .

b. Firming purchases. As explained in sub-paragraph E(4)(a),
firming purchases have been made in the past and are planned for the
future in order to meet the commitments contained in existing contracts,
most of which expire in 1986. After that time, no firming purchases are
projected. Following is a tabulation showing the amount of firming pur-
chases and the price per kWh for the fiscal year 1970-75 period:

1970 1971 1972 1973 1974 1975*
Million Dollars 0.475 1. 0 32 0.918 1.835 7.575 4.240
Million kWh 150 436 391 419 1,568 652
Mills/kWh 3.17 2.37 2.35 4.38 4.83 6.50
*Estimated

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