WSP06167 - Laserfiche WebLink

Home Browse Search

RATE OF REPAYMENT ~ $.A.A.J '-^A.A..A.A.A.J '-^-^A.A.A.A..J Revenue applied on repayment of the Federal Investment totaled $10.4 mil. lIOn In fiscal year 1974. This brought total repayment through fiscal year 1974 to $49.5 mIllion whIch IS approxI- mately 7 percent of the completed plant 1/1 servIce and 2.5 percent of the $1.9 billion prOjected total reimbursable Federal Investment In the project. In additIOn to the amount applied on reo payment, the prOject earned revenue sufllClenl to pay all operating and In. terest charges. Operating costs of units and participating projects turned over to water conser-lancy districts for op. eratJon were paid by the respective con. servancy distrIcts. About one-third of the prOjected total reimbursable Fed. eral Investment was In service as of the end of the year. About $9.9 mIllion or 95 percent of the repayment revenues received in fiscal year 1974 came from the sale of power and was applied to repayment of the power investment About 7 percent of the prOjected total power investment has now been repaid. The $9.9 million 26 IS a 25 percent reduction In net reve. nue from fiscal year 1973. The reductIOn was the result prinCipally of purchasing energy to meet contractual obligations when generation at Glen Canyon was temporarily cut back to comply With the filling wteria In P.l. 90-537. ApprOJomately $330.000 In repayment revenue came from municipal and in' dustna! water sales In fiscal year 1974. mostly from sales from the Glen Can yon and NavajO Units, but also from tour participating projects. ThiS reve. nue totaled 10 percent above last year. M&I revenue was received from Glen Canyon and two of the participating prOjects for the first time. The $330,. 000 was applied to repayment of the municipal and industrial water Invest. ment. Water users of seven participating proj. ects paid approximately $240,000 for Irrigation water ser..ice during the year. All of thiS revenue was applied to repay. ment on the Investment whIch now to- tals about $185 million, but which is projected to grow to about $1 billion when all authorized participating proj. ects are completed. In order to prOVide revenues suffiCient to repay the projected reImbursable costs of authonzed storage units and also to provide the needed repayment aSSIstance lor authorized participating projects Within the tIme lImits pre. SCribed by law. It Will be necessary to make a second Increase In tile CRSP power selling rate. The Increase reo QlJIred Will place the selling rate about 8.5 percent above the current rate, whIch became effective Aprrl I, 1974, and about 10.4 percent above the origi. nal rate which was In eflect to April 1974. The increase is reflected In Ex. hlblt F. Reasons for the prolected Increase are the Inflationary rlse In present and pro Jected power-system operating costs, es. timates of higher costs to complf>te con. struction 01 authOrized units and par. tlclpatlng prOject faCIlities, reduction 111 esftmated power revenue Income be- cause of projected acceleration of water depletions. and the inclUSIon 01 future payment from power revenue of a por- !lon of the estimated construction and operatmg costs of speCIfied units of the Colorado Rivet Sallntty Control Progrilm iP,L, 93 320-88 SIal, 266), ProJectrons usmg current estimates of CRSP costs, construction schedules and Increased net Income from power and water sales. ad valorem takes and miscellaneous revenue, show that pay out of the reimbursable costs olthe au thomed Colorado RIver Storage Prol ect and Parllclpatmg Projects can be accomplished within authOrized repay ment periods (Exhibit F).