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<br />. <br /> <br />. <br /> <br />0386 <br /> <br />4. Assign $8 million in joint costs to the second uni~ of . <br />the Mt. Elbert power plant from non-reimbursable Fish <br />and Wildlife and Flood Control functions. The second <br />unit has not been assigned any joint costs, yet it is <br />dependent upon joint use facilities (collection <br />systems, etc.), similar to the first unit of the power <br />plant which was assigned joint costs. <br /> <br />5. Increase costs assigned to M&I water delivery to <br />correct for the computation of benefits using incorrect <br />data. Recomputation results in a reassignment of joint <br />costs, including $7.3 million from non-reimbursable <br />functions to reimbursable M&I water functions. <br /> <br />6. Reduce the costs allocated to reimbursable features by <br />$6.3 million and to non-reimbursable features by $.4 <br />million, because interest accruals during construction <br />on the Ruedi Dam and Reservoir were not terminated when <br />construction was completed. (Note: this is the only <br />Inspector General finding of the Bureau overcharging <br />water and power users.) <br /> <br />Upon revision of the project's cost allocations, the Inspector <br />General outlined the fOllow-up steps necessary to secure timely <br />reimbursement to the Treasury: <br /> <br />* <br /> <br />Prepare a new rate and repayment study on the basis of the <br />revised cost allocations. <br /> <br />* <br /> <br />Determine the amount of revenue which must be received from <br />each category of user in order to recover project costs <br />within 50 years. <br /> <br />* <br /> <br />Advise the Department of Energy (DOE) of the revised amount <br />which must be received from power users so that power rates <br />can be increased. <br /> <br />* <br /> <br />Market M&I and irrigation water at rates which permit <br />recovery of reallocated costs, considering, in the case of <br />irrigation, assistance from power revenues as provided by <br />~ederal reclamation law. . <br /> <br />ADMINISTRATIVE ~ESPONSE <br /> <br />Cost Reallocations <br /> <br />On May 21, 1~8U BuRec Commissioner Keith Higginson <br />submitted comments on the draft audit report to Inspector <br />General Brown. Higginson agreed to the recommendations <br />regarding interest accrual on the Ruedi Dam -- the one <br />recommendation for reducing receipts to the Treasury -- and the <br />increase in M&I water benefits. However, Higginson refused to <br /> <br />61 <br />