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Power Repayment Study ;., \ ,. Blue Mesa Dam Power plant Hoover Dam, Boulder Canyon PrOject Results of the power repayment study for fiscal year 1979 are depicted in the graph on page 32. Estimated annual power revenues are shown together with their ap- plication. Total revenues for the period shown exceed $4.9 billion. After repay- ment of about $1.2 billion for the power investment and replacements and $402 million for interest, power revenues should be sufficient to repay about $84 million in irrigation costs and provide around $1.6 billion for assistance in repayment of par- ticipating projects. Following are explanatory notes on the terms used on the graph. Caples at the power repayment study in a highly de- tailed form can be obtained upon request. Annual Operating Expenses Annual costs of power and salinity control operation and maintenance. Energy Purchases Annual costs of purchases for firming energy for fuel conservation and for energy to replace the deficiency in Hoover Dam Powerplant generation caused by storage project operations. In past years, energy purchases for fuel conservation are shown as an energy purchase expense 32 and the revenues from energy sales for fuel conservation are included in the gross revenues. In future years, it was assumed that there would be no energy purchases for fuel conservation. Replacements Payments made on power replacements with the highest interest-bearing compo- nent (whether replacements or other power investments) being paid first. Power Interest Payments Annual interest on the unpaid power investment. Power Principal Payments Payments made on the power investment with the highest interest.bearing compo- nent (whether power investment or re- placement) being paid first. Storage Unit Irrigation Principal Payments Power revenues which are applied toward payment of the irrigation allocation of the storage units. Their revenues repay the major portion (about $84 million or 82 per. cent) at each costs with the remainder (about $18 million, or 18 percent) being repaid from M&I water revenues. Power Revenues Available for Irrigation Assistance to Participating Projects Power revenues available after the above costs have been paid, the amount of which will be about $1,610 million through year 2052, A lesser amounf (about $13 million or 1 percent of the total available) will also be available trom M&I water revenues. Total Annual Power Revenues Annual revenues obtained from energy and capacity sales, wheeling for others, rental of substation facilities to others, reim- bursement by the Lower Basin for energy purchased by the CRSP to replace the deficiency in Hoover Dam Powerplant generation, and miscellaneous revenues. In the study, the tirm power rate of $1.34 per kilowatt-month and 3.4 mills per kilowatt-hour was increased to a rate of $1.76 per kilowatt-month and 4.1 mills per kilowatt-hour at the beginning of fiscal year 1981. The power rate increased to $1.87 per kilowatt-month and 4.4 milis per kilowatt-hour beginning in fiscal year 1984. Rate adjustment procedures are nearing completion for the October 1, 1980, rate increase.