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<br />I <br />I <br />I <br />I <br />I <br />I' <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />L iUS 2 <br /> <br />r. <br /> <br />INTRODUCTION <br /> <br />This report is designed to provide the background information that is <br /> <br />necessary to gain an insight into the Pick-Sloan Missouri Basin Program <br /> <br />repayment procedures. This project, which will be referred to as <br /> <br />P-S MEP, was formerly Missouri River Basin Project. The report contains <br /> <br />a brief description of the project's authorization, financial and rate <br /> <br />history. It sets forth factors affecting repayment, legislative <br /> <br />criteria used as the basis for rate and repayment studies, and the <br /> <br />results of the latest technical rate and repayment study supporting <br /> <br />the announced rate increase. <br /> <br />Average Rate and Repayment Study CARRE) Fiscal Year 1972 was conducted <br /> <br />to review the adequacy of the existing P-S MEP power rates to repay <br /> <br />Federal investments with interest and annual operating costs according <br /> <br />to established interest rates and criteria. All data in the study <br /> <br />include combined inputs from both the Eastern and Western Division of <br /> <br />the P-S MEP. Annual power sales by energy and capacity classes, <br /> <br />corresponding revenues, revenue deductions, and investment in facili- <br /> <br />ties allocated to commercial power are taken from accounting records <br /> <br />through FY72. Projected data beyond FY72 are based on estimated <br />average energy and adverse year capability revenues with best estimates <br /> <br />available for operating costs and investments. <br /> <br />Payout criteria and interest rates beginning with FY66 are based on <br /> <br />those endorsed by the legislative history in support of or authorized <br /> <br />in the Act of August 5, 1965, "Garrison Diversion Unit Authorization." <br />