WSP03951

• File Number: 8407.500
• Description: River Basin General Publications - Missouri River General Publications
• Date: 6/1/1973
• Title: Information Report on Proposed Power Rate Adjustment Eastern and Western Divisions
• Water Supply Pro - Doc Type: Publication

I
I
I
I
I
I
I
I
I
~I
I
I
I
I
I
I
I
I

1077

In 1970, Congress passed Public Law 91-576 (approved December 24, 1970)
which changed the name of the Missouri River Basin Project to Pick-Sloan
Miesouri Basin Program to honor the two principal authors of the compre-
hensive plan for development of the river basin. It's the same project -
just a new name.

The Bureau of Reclamation activities associated with the Pick-Sloan
Missouri Basin Program are administered by two Regional Offices, the
Upper Missouri Region (formerly Region 6) with headquarters at Billings,
Montana, and the Lower Missouri Region (formerly Region 7) with head-
quarters at Denver, Colorado. You are in the Upper Missouri Region.
There are two separate large integrated power systems in the Pick-Sloan
Missouri Basin Program. The Eastern Division operates in Montana east
of the Great Divide, North Dakota, South Dakota, western Minnesota,
western Iowa, and the eastern two-thirds of Nebraska. The Western
Division operates in Wyoming, Colorado, and the western one-third of
Nebraska. You are, of course, served by the Eastern Division system.

Although the Eastern and Western Division systems are interconnected at
Yellowtail Dam in Montana and at a point near Stegall, Nebraska, they
are separate distinct systems. For seversl technical reasons, they
cannot be fully integrated at this time. The two divisions have
different generating plants located on different river systems. They
have made separate allocations of firm power and have separate rate
structures. Nevertheless, they are both a part of the one authorized
project (Pick-Sloan Missouri Basin Program), and both must contribute
revenue to repay project investments. Therefore, it is necessary to
make a joint repayment study to determine the financial position of
the project. The attached report refers to a joint project repayment
study, but refers to the divisions separately where necessary.

The study that was made is titled "Average Rate and Repayment Study
(ARRS) FY 1972~ The study' was conducted in 1973 using actual costs,
revenues, and repayment through FY 1972, a close estimate of costs
and revenues for FY 1973, and projected costs and revenues for the
balance of the study period.

Details on the repayment study are covered in Sections V. A. and V. B.
of the attached report. BaSically, all investments for commercial power
must be repaid with interest. Investments for irrigation must be repaid,
but no interest is charged. Power revenues will be used to aid repayment
of investments for irrigation. However, except for some older separate
projects, such repayments will be made after investments in power
facilities have been repaid. Aid to Pick-Sloan Missouri Basin Program
irrigation will have no effect on your power rates. Investments allocated
to flood control and navigation are nonreimbursable.

2