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<br />(3) Other expense, column 6. <br />items as payments required by legislation <br />use of transmission capacity. <br /> <br />Other expenses include <br />and "wheeling" payments <br /> <br />such <br />for <br /> <br />(4) Provisions for depreciation, column 7. The annual <br />entries in this colunn prior to fiscal year 1973 were to build up a <br />"sinking fund" to provide for the cost of replacements as originally <br />installed facilities aged and deteriorated. For power system repayment <br />studies, this practice was terminated beginning in fiscal year 1973. <br />(see discussion of replacements, column 15). <br /> <br />(5) Interest, column 8. All interest due each year on the <br />unpaid interest bearing investment and interest on replacement cost is <br />tabulated. The numbers shown are the sum of computed interest at the <br />several rates which apply to the investment of different parts of the <br />project and to replacements made at different times. <br /> <br />(6) Total deductions, column 9. This is the sum of column <br />4 through 8. <br /> <br />d. Prior year adjustments, column 10. This column of entries <br />results from the occasional need to make adjustments to prior year's <br />income and expense accounts based on later information and documenta- <br />tions received. Normally the only adjustments included are those which <br />significantly distort the correct year data. The entries for fiscal <br />years 1973 and 1974 result from salvage credits and removal costs of <br />replacement items. <br /> <br />e. Reserve and depreciation items, columns 11 through 13. <br />Depreciating accounting data are shown in these columns through fiscal <br />year 1972. In fiscal year 1973 and thereafter, the columns are blank <br />because a new method of handling replacements has been adopted for repay- <br />ment studies and the replacement data are shown in columns 15, 16, and <br />17. <br /> <br />f. Net available for repayment, column 14. After deducting <br />from gross revenues the operating expenses and interest due, the balance <br />is available to reduce the project investment, including replacements. <br />The amount available in each year of the study is shown. In order to <br />meet basic requirement 2.a. above, this number must always be zero or <br />positive. <br /> <br />g. Replacements, columns 15, 16, and 17. <br /> <br />(1) The annual cost of replacements, column 15. Entries in <br />this column are either the actual cost of replacements, for fiscal years <br />1973 and 1974, or for years after fiscal year 1974, the estimated future <br />cost of replacements at current-year price levels. <br /> <br />44 <br />