WSP05808

• File Number: 8220.100.50
• Description: CRSP - Power Rates
• Basin: Colorado Mainstem
• Date: 10/1/1985
• Author: USDOE/WAPA
• Title: Colorado River Storage Project and Participating Projects - Proposed Adjustment of Transmission Rates
• Water Supply Pro - Doc Type: Publication

I. SUMMAR Y

Western Area Power Administration (Western) is distributing this brochure to
provide information on the proposed adjustment of Colorado River Storage
Project (CRSP) transmission rates. An informal public meeting will be held to
provide additional information and to hear from interested persons. After a
consultation and comment period and review of oral and written comments, the
Deputy Secretary will announce a rate decision. If the decision is to adjust
rates, the new rates will be placed in effect on an interim basis, and will be
submitted to the Federal Energy Regulatory Commission (FERC) for a final
decision.

Authorization of the CRSP on April 11, 1956 by Public Law 84-485 (43 U.S.C.
Section 620-620.0) initiated the comprehensive development of water resources
of the Upper Colorado River Basin. Power was authorized "as an incident" to
other project purposes, and an electric transmission system has been
constructed to deliver the Federal power capability of over 1600 MW.

Transmission rates studies are used to determine what rates should be charged
for use of the CRSP transmission system by other utilities. The 1985 study
shows that increasing costs from system additions make a rate increase
necessary. The historical as well as the present and proposed transmission
rates are as follows:

FY 1965
FY 1974
FY 1983
FY 1986

(Present Rates)
(Proposed Rates)**

Transmission
Firm
($/KW-YR)
$4.50
$6.60
$10.27
$15.94

Rates
Nonfi rm
(Mills/KWH)
I mlll
1 mill
2 mi 11 s
3.1 mi lls

**If feasible. actual FY 1985 costs and revenues wi 11 be substituted for
estimates in the FY 1985 study. This may modify the proposed rates
slightly. A copy of any revisions in the FY 1985 studies will be supplied
to interested parties as soon as they are available.

The effective date for the proposed new rates is expected to be January 1,
1986.

II. RATE ADJUSTMENT PROCEDURE

A. Announcement of Proposed Rates and Consultation and Comment Period.
On November 20, 1984, an advance announcement was made at a CRSP customer
meeting in Salt Lake City, Utah, that a power rate adjustment was being
considered, and that a preliminary study indicated the firm transmission rate
would need to be increased from the present rate of $10.27 to about $18.50 per
kW per year. Western's commitment to hold informal customer meetings for CRSP
rate adjustments prior to initiating formal rate adjustment procedures applies