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1~ '7 S i FRYINGPAN-ARKANSAS PROJECT, COLORADO Dent parts of this analysis, including calculation of interest during construction, estimates of annual replacement reserves, capitalization of annual values in the cost allocatton and repayment of interest-bearing power and DHmicipal water investments. COSTS Project coat8 The total estimated cost of the project of $169,005,000, based upon October 1953 prices, has not been indexed DOl' cbanged. Review of reclamation cost Indexes from October 1!l58 to October 1960 shows that the composite construc- tion tost index declined slightly during the 2-year }Jeriod from 1.26 to 1.25 (1949-1951=1). Application of component indexes to the major types of fea~ tures in the Frylngpan-Arkans8s project indica led nn overall decline of about 1 percent of the total project cost. The insignificant downtrend does not warrant a detailed estimate revision at this time; therefore, the previous project estimate of $169,905,000 has been retained :tor this evaluation. Annual replacement costs During the last 3 years, procedure~ for estimating annual costs of replacement reserves lJal"e been under study. Service li.es of project facilities nnd com- ponents have been examined in detail and, bnsed on this study and experience, policies and procedures now provide for extending life expectancies for re- placelllJie components of plant and equipment. The modified pro<:ednreg were eITedUl1ted ill the latter part of 1960 and have been used with the ~.63::l-pel'cent interest Tllte in estimating IInnual replacement reserveS. As a result the annual replacement costs are less than corresponding figures contained in the reevalua- tion statement of January 1960. Oosts of Ruedi Dam,. a.nd Reservot" In the report on Ruedi Dam and Reservoir and the ree\'nluation ::ltatelllent, the total estiwated cost of $12.831,000 for that feature was distributed between the Fryingpnn-ArkunslIs project and wegtern slope uses ill amounts of $i.. 600,000 and ~5,231,OOO respectively. A::;soclntecJ interest during (,'OIl'Struction und HnlltInI 0.1\1. & R. costs Hlso were distributed. The assigned western ~lope cost of $5,231,000 consisl:a of nonreiwbursable allocations fiulOullting to $1,. 030,300 for flood control, Tecrl;'ution. und fish and wildlife nnd the reimbursable allocation of $3,300,700 for deferred wunicilHlI and industrial water u:-;e. In addition to the $7,600,000 of Ruedi costs originally assigned to the Fry- Ing}lfin-Arkanslls project, this study nlso includes the Ruedi .M. & 1. water alloca. tIOD (rounded to $3.301,(00) to demonstrate that the revC:!nue cnJlabilitie~ of the project are sufficient to underwrite the latter costs. Thi'S arrangement is not viewed as permanent. At nny time in the future when a feasibility report on the Basalt or other irrigation project using Ruedi water may be approved, or when Ruedi water may be contracted for M. & 1. use, the Fryillgplln-Arknnsas project would be relieved of this added cost. Should storage in Ruedl Reservoir be used for western slope IrrIgation, the cost ot such storage could be included in the authorizing legislation o:t the participating unit of the Colorado River upper storage project. Basin power revenues could then be applied to assist in repayment of costs in excess of the payment capacity of the water usenl. , -,7 i