Laserfiche WebLink
<br />01352 I <br /> <br />DRAFT <br /> <br />energy and capacity studies as input to its financial model, Western takes the <br /> <br />data and artificially caps the depletion levels at the year 2010 level, <br /> <br />asserting that "because the timing of the development of the associated <br /> <br />consumptive use is uncertain, Western chooses to not include future depletions <br /> <br />within the ratesetting years" (59 FR 55106}.1 In this way, Western is able <br /> <br />to keep the Integrated Projects power rates lower by assuming water available <br /> <br />to generate electricity that will actually not be available because of <br /> <br />depletions by the States. <br /> <br />The Commission and the Upper Division States work diligently to ensure <br /> <br />that the depletion data provided to Reclamation for use in such things as the <br /> <br />energy and capacity studies are realistic and reflect appropriate levels of <br /> <br />future planning. In 1992, the Commission and the States developed a depletion <br /> <br />table to use "for planning purposes only" in discussions of Basin-wide <br /> <br />reservoir operations with the Lower Basin States. While this 1992 planning <br /> <br />purposes depletion table reflected full ultimate development by the Upper <br /> <br />Division States, depletions in those States did increase at a much slower rate <br /> <br />than depletions in the "official" table used by Reclamation in its energy and <br /> <br />capacity studies prior to 1992. Despite Reclamation's agreement to use this <br /> <br />1992 planning-purposes depletion table only for Basin-wide operations studies, <br /> <br />Reclamation used the depletion data in its 1992 energy and capacity study on <br /> <br />the ground that it represented "better datal! than the depletion projections in <br /> <br />the "official" table. However, Western even ignored this "better datal! as <br /> <br />input to its financial model, choosing instead to further constrain depletions <br /> <br />lAIl citations are to Westernls November 3,1994 Federal Register "Notice. <br />of Rate Order--Salt Lake City Area/Integrated Projects (Integrated Projects) <br />Firm Electric Service Rate Adjustment," beginning at 59 FR 55101. <br /> <br />3 <br />