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5. Ratesetting. After determining from the power repayment study the requirements for revenues from the sale of commercial power, the rates for capacity and energy will be determined for the following equation: Commercial Power Revenue = (Demand Charge) (Firm Capacity) + (Energy Charge) (Firm Energy) + (Peaking Charge) (Peaking Capacity) The demand charge and the peaking charge have been assumed to be equal. The demand charge and peaking charge in dollars per kW and the Energy Charge in mills per kWh have been selected so that the cost to all preference customers will be as equitable as possible. Some of the other considerations in arriving at these rates are: 1. The fixed cost of facilities, the cost of purchased power, and annual operation and maintenance costs. 2. Proportional to the cost of alternative power. G. ALTERNATIVE AREA POWER RATES Comparison of the proposed increased rate for CRSP power with wholesale rates offered by utilities in the CRSP market area indicates that the rates currently offered by the utilities are higher than the proposed CRSP rate. At 58.2 percent load factor, the rates for the five major utilities range from 7.72 to 17.04 mills per kWh, as compared to the proposed CRSP rate of 6.55 mills per kWh. The increase ranges from 1.17 to 10.49 mills, or from 18 to 160 percent, higher than the proposed rate. The average of the alternative rates, weighted proportionately to the CRSP loads of the present CRSP customers in the respective utility service areas, would be approximately 12.5 mills, approximately 6 mills or 90 percent above the proposed CRSP rate. H. PROCEDURES FOR PUBLIC PARTICIPATION The final procedures for public participation in general adjustments for power rates have been established. Copies of the adopted procedures and the August 4, 1975, notice of such adoption, signed by Jack Horton, Assistant Secretary of the Interior, are included on the following pages. 50