WSP07068

• File Number: 8141
• Description: Fryingpan-Arkansas Project
• State: CO
• Basin: Arkansas
• Water Division: 5
• Date: 5/15/1961
• Author: US House of Represen
• Title: Hearing before the Subcommittee on Irrigation and Reclamation of the Committee on Interior and Insular Affairs House of Representatives on H R 2206 H R 2207 H R 2208 and H R 2209
• Water Supply Pro - Doc Type: Legislation

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FRYINGPAN-ARKANSAS PROJECT, COLORADO

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A summary of the assignment or Rnedi costs to the Frylngpan-Arkansa&
project follows:

Prol~ctcost Interest Annual
I"m durint: con- O.M. .. R.
struction
Totnl Rucdl rosts____.__________________._________..__________ $12,831.000 $664,000 SUI,700
Less nonreimbursable n.lloratlon9:
Flood cootrol________________.____________________________ 117,500 6,000 100
Fish and will.lll[e___________._________________.____________ 1,757.800 00,200 ],300
RecJ'('btlOD..___________________._________.________________ b5,OOO ------------- 10,500
Bllhnce__________________________________._____.____..__ 10.00:1.700 5137,800 7,800
AssllUlCd to Frymgpan-ArkansllS project: 7,600.000 398,4.00
InWall)' f1$~igned___________._________._____________._____ 5,500
Assigned in this8Dslysis___________._________.___________. 3,300, ;00 169,400 2,300
TotoJ._.______..________________n______u______..______ 10,1100,;00 56;,800 7,800

The amounts of additional Ruedi costs assigned to the Fryingpan-Arknnsas
project in tJlis study are the allocations to deferred municipal and industrial
water use as shown in the report on Ruedi Dam and Reservoir. For simplicity
of annly!':is. however, the total project costs of $10,900,700 were rounded to
$10,901,000.

Inte1.cijt dll1"ing const1"1lclion
OrigiTlfil calculatiou!'! of interest during construction were based OD the rate
of 2.;) perceut. In tbese studies two adjustments were wade. Firfit, the
$160,400 associated with tbe Ruedi M. & I. water allocation was added Rlld. sec-
ondly, the revised total was indexed to the rate of 2.632 percent, which is nr)-
plicuble for fi~cal year 1961 under the formula contained in the authorizing
bills aod the Water Supply Act of 1958. The adjustments follow:

Item
Towl interest during constroction as shown ill reevaluation state-
lDent__________________________________________________-------
Add Rlledi M. & 1. water allocatiOIL_____________________________

Amount
$5, 449, (KJO
16:), 400

Total based upon 2.5 percenL_____________________________
Total adjusted to 2.632 percenL________________________________

G.61S,400
5.1)1;:;,000

COST ALLOCATION

Project co!':t~. interest during construction. and anDual O.M. & R. costs are
allocnted concurrently by use of the separable costs-remaining benefits method.
The allocation is based upon a 50-year period of analysis and the interest rate
of 2.Ga2 percent; hence. annual benefits and O.M. & R. costs are capitalized on
this basis ill the allocation. Figures fur these Items are the same as contained
in the reevaluation statement except for replacement reserves whicb were revised
a3 previously explained.
Estimates of alternative single-purpose project costs also are the same as
used in the reevalnation statement except that the component of interest during
eonstruction of these alternates was adjusted from tbe interest rate of 2.5
percent to 2,632 percent. Snch modification is not pertinent to power since
the alternate stenmplant values representing both benefits ond alternate costs

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