Laserfiche WebLink
<br />Issue Sizing <br /> <br />The average coupon rate for the tax exempt bonds is assumed to be 11 per- <br />cent and for tax-exempt commercial paper is 6 percent. Interest during <br />constructlOn lS assumed to capital ize to October 1, 1993. The construction " <br />fund is assumed to be drawn down quarterly. Financinq expenses are assumed ~ <br />to be 2.5 percent of the bonds and .125 percent per year on the amount of <br />tax exampt commercial paper outstanding.. <br /> <br />Given these assumptions, a total of $3,004,100,000 in bonds issued in <br />annual incremental series over the construction period would be issued to <br />cover the costs of the generation and transmission facilities. .In current ~ <br />dollars, this total in bond issues amounts to $1,844,256,000._ <br /> <br />The total of $1,844,256,000 in bond issues and $322,000,000 of sunk joint <br />costs (including interest during construction) amounts to $2, 'fi6.256,000. <br />Based upon an installed capacity of 1182.4 MW, the estimated price per IL <br />installed kW for generation and transmission facilities is $1832. 7T <br /> <br />Table 6, Column 8 sets forth the total costs payable annually from electric <br />rates. Using this information and the information in Table 2, mill rate <br />could be derived. Repayment of the sunk joint costs at 3.222 percent over <br />40 years, a $14,435,000 annual payment is displayed in Column 7. As noted, <br />these payments will continue beyond the year 2020. Column 2 displays the <br />grand total of debt service which includes all principal and interest <br />payment on the bonds, and includes the short-term construction debt <br />(T.E.C.P.) to be rolled over into long-term bonds. <br /> <br />Power Rates <br /> <br />Alternatives for establishing either uniform or non-uniform power rates <br />for all participants will be presented to assure recovery of all costs <br />and expenses associated with generation and transmission services. Estab- <br />1 ishment of power rates would be contingent upon the individual partici- <br />pants status for non-Federal financing and recommended financing options. <br /> <br />The rate may be a se arate service rate or ma be an el m <br />ln egra e rate schedule with other resources such as the Colorado River <br />Storage Project (CRSP). <br /> <br /> <br />+~ , <br />-~~ <br />11-'1 c.rsf' <br /> <br />Arty mill rate estimate would vary accordinq to revised cost and expense <br />estimates and whether the Diamond Fork Resource is "blended" with CRSP. <br /> <br />+ <br /> <br />29 <br />