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<br />fiscal year 1975. Adding all these miscellaneous revenues gives a total <br />of $5,417,000 for fiscal year 1975. For the period fiscal year 1976 <br />through 1985, it has been assumed that the oil conservation revenues <br />would be $1,700,000 annually. This amount is one-half of what the fiscal <br />year 1975 amount would have been if the revenues had been shared with <br />other Bureau of Reclamation regions as per agreements recently reached. <br />For the period fiscal year i976 through 2053, it has been assumed that <br />the CRSP would receive $1,300,000 annually for outage assistance and <br />reserve capacity for other members of the Inland Power Pool. This was <br />derived on the basis that the $847,000 in fiscal year 1975 was only for <br />9 months and that a 12 month figure would be one-third greater ($1,300,000). <br />Thus, the total annual miscellaneous revenues for fiscal year 1976 <br />through 1985 would be $3,030,000 and for years thereafter $1,330,000. <br /> <br />i. Interest credit. Consideration was given to taking an <br />interest credit, based on the theory that revenues earned during the <br />year could be invested as they are earned and thus draw interest. Since <br />money is expended each month as well as earned each month, the net <br />effect on amortization could be plus or minus or zero, and would probably <br />be insignificant. No interest credit was used in the repayment study, <br />and it is not current Bureau practice to take an interest credit on <br />any projects. <br /> <br />F. METHODOLOGY FOR POWER REPAYMENT STUDY. <br /> <br />1. Introduction. The basic purpose of a power repayment study is <br />to determine if the revenues available are sufficient to pay the power <br />costs within the allowed time and within the legislative requirements on <br />the Secretary. In order to determine if this requirement is met, a <br />year-by-year analysis of historical, present, and future projections of <br />revenues and costs must be made in an appropriate manner_ This section <br />will explain, in simplified form, how a repayment study is made, the <br />major elements involved, and how the results are tabulated for easy <br />reference. <br /> <br />2. Basic Requirements. Figure F-l is a diagram of the CRSP 1974 <br />repayment study results and shows the major elements of revenues, costs, <br />and the time frame involved in the study. There are three major require- <br />ments to be met in a repayment study: <br /> <br />a. Annual revenues should be sufficient to meet all costs the <br />year they occur except for investment and replacements. <br /> <br />b. Each increment of capital investment allocated to power must <br />be repaid, with interest, within 50 years after the related facility is <br />placed in service. Replacement investments allocated to power must be <br />repaid within the lifetime of the replaced item. <br /> <br />c. Each increment of capital investment allocated to irriga- <br />tion must be repaid without interest within 50 years plus development <br />periods, to the extent decreed by the authorizing act. <br /> <br />40 <br />