WSP04440

• File Number: 8220.111.A
• Description: Central Utah Participating Project
• State: UT
• Basin: Colorado Mainstem
• Date: 5/1/1984
• Author: USDOI-BOR
• Title: Diamond Fork Power System
• Water Supply Pro - Doc Type: Report/Study

PROJECT CONSTRUCTION COST ESTIMATE

Project Construction Cost Estimate

It is estimated that the non-FederallY financed portion of the total
construction ccsts for generation and transmission facilities will be 1.2
billion (.january 1983 prices). This estimate is exclusive of interest
dUrln!l construction, reserve funds, WO~k]!!.g_<;~.p..Lt~lL..ar1d cost to particu-
lar participants such as taxes, regulatory~enses. and contingency and
tlnanclng expenses. This estimate includes engineering overhead and
miscellaneous costs. These baseline numbers may be helpful to you in
calcul ating what the energy and capacity might cost under your specific
financing preferences.

Table 4 summarizes the January 1983 construction estimate. The separable
costs shown in the table represent the construction costs of facilities
whose sole purpose is power generation. The transmission costs include the
construction costs of additional transmission lines, switch-yards, and
substations needed to del iver Di amond Fork Power to the assumed points of
del ivery. The joint costs are the power systems share of the costs of
facilities that serve more than one of the Bonneville Unit Project's pur-
poses. It is anticipated that Reclamation will offer long-term financing
(40 years) for sunk joint costs at 3.222 percent interest.

Table 4
Diamond Fork Power Project
January 1983 Construction Cost Estimate
Estimated Construction Costs 1/
(OOO's)

Separable costs

$ 738,000
247,000

Transnission costs

Joint costs to be built
(non-Federally fin anced)

Total costs to be non-Federally
financed

235,000
$1,220,000

Sunk joints costs
(Federally fin anced at 3.222 percent)

260,000

Total project costs

$1,480,000

.l/ Excludes interest during construction, reserve funds, working capital,
owner's contingency, and financing expenses. The Federal share of costs
for Bonneville Unit pumping requirements has also been excluded.

The construction cost estimates in Table 4 are based upon the following
major assumptions, each of which we bel ieve real istic:

1. The project will be constructed according to the existing schedule.
To the extent del ays occur on completion dates of project features,
those del ays may result in increased project costs.

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