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- ~rEFIT-COST ANALYSIS Power benefits . Total power benefits for the storage project and participating proj- ects are estimated at an average of $42,812,000 annually. These benefits are taken as the average a=ual value of the total estimated cost of obtaining equivalent power fro~ the most economical alternative source likely to be developed in the absence of the storage project and partici- vating projects. Steam-electric plants constructed and operated by private utilities are oonsidered to be the most likely alternative source. The private plants and necessary transmission lines would be located throughout the market area so as to provide the most economical means of serving the load centers with the neceesary power. The plants gen- erally would be lal'ge, modern, three-unit installations having a high efficiency and being strategically located with respect to fuel supply. The average cost of alternative steam-electric power and energy delivered to representative load centers throughout the n,arket area is estimated to be Q24.50 a year per IGllowatt of dependable capacity (including $8.50 per year for taxes) and 2.7 mills per kilowatt-hour for energy. The average annual benefits as shown above result from applying these unit costs to the average annual equivalent amOlmts of capacity and energy estimated at 1,095,000 kilowatts and 5,920,000,000 kilowatt-hours for the storage project and Central Utah project. The total cost of the ~ost economical alternative source of equiva- lent power or power benefits for the Colorado River Storage project is estimated at $40,389,000 annually as shown under "Cost f.llocations." The total cost of the most economical alternative source of equivalent power or power benefits for the Central Utah project is estimated at $2,425,000 annually. ~llnicipal and industrial yater benefits Benefits from municipal and industrial water in present evaluations are ~onfined to those that 10'111 result from the Central Utah project and are estimated to average $1,437,000 annually. This estimate is based on the average annual equivalent cost of obtaining a comparable water supply from the most economical alternative single-purpose means of development. Flood control benefits Preliminary appraisals by the Corps of Engineers indicate that the reduction in flood damage that will result from operation of the author- ized project developments will average $124,000 annually. The benefits are equal to the difference between the flood damage that is expected to occur with and without the project. The Corps will f'urther evaluate flood control benefits in connection with definite plan studies. . 29