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<br />The staff responsible for design of this proposal has more than 150 years of experience with the Bureau <br />of Reclamation and the Western Area Power Administration in the fields ofCRSP power system <br />operations, maintenance, project administration, engineering and design, management services, data <br />processing, and power marketing. <br /> <br />Cost Savings Analysis <br />The "Will Be" cost savings analysis for the SLIP/CRSP, presented at Western's customer meeting in <br />Denver, and the Salt Lake City Area Office customer meeting of 8/22/95 and 8/17/95 respectively, <br />showed a savings estimated at $4.5 million/year. The base year for present costs was fiscal year 1994 <br />with costs of $26 million/year. The cost savings analysis, as presented, included a one time <br />transformation cost of $3. I million. This number appears to be low, based on the communication and <br />telemetry equipment modifications that will be necessary to make the "Will Be" proposal work. Taking <br />this into account raises this one time cost to approximately $7.0 million, ifit is done correctly. <br /> <br />This alternate proposal, utilizing the same data as presented to the customers, shows cost reductions of <br />$9.6 M million/year, saving UCR customers $5.0 M over the "Will-Be" plan. In addition, one-time <br />"transformation" costs are significantly reduced by eliminating the need for additional radio and <br />microwave communication equipment and sites, and additional and reconfigured telemetry equipment. <br />Costs are also lowered by reducing the number of employees needing relocation, severance pay and <br />training. One time costs for this alternate proposal are estimated to be $1.25 million. This represents a <br />savings of$I.85 million over the "Will Be" figures, and $5.75 million over the estimated $7.0 million. <br />Most of the $1.25 million costs are accrued through the relocation or separation of the Salt Lake City <br />office employees. <br /> <br />This proposal allows for the new Montrose SCADA system to go to RMR to relieve the reliability <br />problem with their present SCADA system. Montrose will continue to operate on its existing system, <br />expected to last at least 5 years. <br /> <br />Many of the SLIP/CRSP administrative, operations, and contractual functions now performed by the <br />Loveland and Phoenix offices are proposed to be returned to the UCR, eliminating duplication of work <br />and saving the UCR approximately $3.7 million/year of the $5 million/year that it is currently paying to <br />the Loveland and Phoenix offices for these services. <br /> <br />The "Will Be" plan proposed to either move or eliminate many of the administrative and technical <br />services that are currently being performed for the Bureau ofRedamation (USBR) by Western at the <br />Montrose office. The USBR would need to replace these functions, thereby increasing the USBR <br /> <br />3 <br /> <br />01119 I <br />