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<br />. <br /> <br />. <br /> <br />. <br /> <br />SUMMARY OF PROCEDURES FOR ECONOMIC AND FINALCIAL ANALYSIS <br /> <br />Procedures adopted for the economic and financial analysis of the <br />Colorado River Storage project and participating projects are consistent <br />wi th present policies of the Bureau of Reclamation and with the provi- <br />siona of the project authorizing act of April 11, 1956. Salient informa- <br />tion concerning the procedures is listed below. <br /> <br />(1) Analyses were made of the storage project units and participat- <br />ing projects in the following combinations: <br /> <br />(a) '!he four storage units llere analyzed separately and <br />jointly for benefit-cost comparisons and jointly for <br />cost allocations and repayment. <br /> <br />(b) '!he 11 participating projects were each analyzed <br />separately. <br /> <br />(c) '!he four storage units and 11 participating projects <br />were analyzed jointly to show the overall expenditure <br />and repayment requirements. <br /> <br />(2) Construction cost estimates are the latest official estimates <br />of the Bureau of Reclamation and cooperating agencies and are based on <br />the January 1957 price level except that bid pricee are used where avail- <br />able and actual costs of past investigations and construction are included. <br /> <br />(~) Operation and maintenance cost estimates are based on 1954-56 <br />price levels. Replacement costs are based on current construction cost <br />estimates. <br /> <br />(4) A 100-year period is used in ~~e benefit-cost and cost alloca- <br />tion analyses. <br /> <br />(5) Water supply, power production, and related studies are based on <br />the as'Sumption that average annual stream depletions from projects in the <br />upper basi~ will increase from an average of 2,550,000 acre-feet at pres- <br />ent to an average of 5,500,000 acre-feet by the end of the 100-year per- <br />iod from Fiscal Year 196, through Fiscal Year 2062. In addition depletions <br />due to evaporation losses from the four authorized storage units are esti- <br />mated to average 691,000 acre-feet at the end of' the 100-year period. <br /> <br />(6) Benefits for use in the benefit-cost and cost allocation analy- <br />ses are determined for all project purposes in accordance with existing <br />procedures of the Bureau of Reclamation. Irrigation benefits are evalu- <br />ated as direct, indirect, and public and are based on anticipated agricul- <br />tural cond1 tions ld thout and ,d th the development. Benefi ts from power <br /> <br />25 <br />