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A. INTRODUCTION " Initial power generating units of the Colorado River Storage Project (CRSP) and participating projects were placed in service in 1963. Additional power generating units were placed in service in 1964, 1965, 1966, 1967, 1968, 1970, and 1971. Another generating installation is now under construction and scheduled for service in 1977 and additional plants are planned to go into service in 1979 and 1980. Power sale rates developed in 1962 were adopted to repay costs assigned to the power function in accordance with the provisions of Public Law 485, which authorized the CRSP and participating projects. During the interim period from 1962 to 1973, several significant changes occurred which increased reimbursable project costs and reduced the net project revenues, Construction, operating, and maintenance expenses have esca- lated, along with the general economy, which require greater net reve- nues from both water and power sales. Also, the water supply for the 10 year period following initial generation in 1963 was considerably below average except for 3 years. Repayment studies have indicated a declining financial position of the CRSP for several years. The fiscal year 1972 study indicated that project revenues at the then existing power sale rate would have re- sulted in repayment deficiencies within the allowable repayment periods of the various features which aTe to be repaid from power revenues. As a result of this situation, Reclamation initiated rate adjustment pro- cedures which culminated in the Department's November 1973 announced rate increase. Effective April 1, 1974, the wholesale firm demand rate was increased from $1.275/kW/mo (Schedule R4-Fl) to $1.32/kW/mo (Schedule UC-FI). In the period since the 1972 study, construction, operation, and maintenance expenses have continued to escalate, and a further power rate increase appears warranted. B. PROCEDURE FOR CRSP RATE ADJUSTMENTS Announcement of Tentative Rates and Beginning of Consultation and Comment Period. The procedure adopted by the Bureau of Reclamation for power rate adjustments affords interested members of the public a reasonable opportunity for participation in the development of rates. The first step in this procedure is the announcement of the tentative rates, including the criteria used in determining the rates. The second step involves a 90-day public participating period during which interested persons will have the opportunity to consult with and obtain information from departmental representatives, to examine repayment study data, and to make suggestions for modific~tion of the rates or criteria. .