WSP05570

• File Number: 8220.100.60
• Description: CRSP
• Basin: Colorado Mainstem
• Date: 12/1/1974
• Author: USDOI/BOR
• Title: Report on Allocation of Costs - Colorado River Storage Projects
• Water Supply Pro - Doc Type: Publication

chasing energy and other minor miscellaneous costs. All of these except
the operation and maintenance and replacement costs associated with the
multipurpose facilities (principally Blue Mesa, Flaming Gorge, Glen Canyon
and Navajo Dams) are considered power costs, and are assigned to the power
purpose.

The allocation of the average annual storage project operating costs
estimated for the 1973 Power System Average Rate and Repayment Study CRSP
for the 96 years (1964-2059) period being used in storage project repay-
ment studies is shown in Table 5. The allocation is according to the
established pattern.

Suballocation of Costs Allocated to Irrigation and Other Consumptive Uses Purpose

At the time the preliminary cost allocations were made on which the power

selling rate is based, no sales of water from the storage project for

municipal and industrial purposes and no allocation of costs to the municipal

and industrial water supply purpose had ,been made. Sales of water for the

purpose were foreseen, however, and were to be accommodated in the cost

allocation by suballocating to the municipal and industrial water purpose

an appropriate share of the costs allocated to irrigation and other con-

sumptive uses. The procedure for making the suballocation is outlined in

a June 6, 1970 letter to the Conmdssioner, Bureau of Reclamation from the

Regional Director, Region 4, Bureau of Reclamation, subject: "Estimated

1/
plant-in-service costs of M&I water from storage units of CRSP". -

The suballocation procedure is applied in the preparation of Table 6 which
shows the determination of the total construction costs and interest during
construction suballocable based on water sales contracts and options executed
as of June 30, 1974. Since the suballocable amounts are based on executed
sales and option contracts they will change if the amount of water sold
under the contracts change. Costs. ,lire. n()_t_..t.()..J>~_actu_ally . ~_uball()_c.ated.. .t.Q
the municipal ,and industrial water purpose for repayment accounting until
the associated water deliveries are,mad~. For example, of the $7,698,000
Glen Canyon Unit costs shown on Table 6 as suballocable, only $1,050,000
was suballocated as of June 30, 1974, since only a portion of the contracted
water deliveries was being made at that time.

1/ A copy of this letter is included in this report as Attachment 3.
14

~