WSP07421

• File Number: 8220.100.50
• Description: CRSP - Power Rates
• Basin: Colorado Mainstem
• Date: 5/1/1986
• Author: USDOE/WAPA
• Title: Rio Grande Project Proposed Adjustment of Power Rate
• Water Supply Pro - Doc Type: Publication

Butte Dam, took place in accordance with the Convention for the
Rectification of the Rio Grande, February 1, 1933, 48 Stat. 1621. The
Caba110 Dam was completed in FY 1938.

The Interior Department Appropriation Act, 1938, ch. 570, 50
Stat. 564 (1937), a 11 owed for power faci 1 ity construction and provi ded
for the application of power revenues toward repayment of the
project. The Elephant Butte Powerp1ant and a 115-kV transmission line
to Las Cruces, New Mexico, were constructed between FY 1938 and FY
1940. Additional transmission features were added between FY 1941 and
FY 1952. In FY 1973, the Deming-Central Transmission Line and Central
Substation near Central, New Mexico, were sold. In FY 1979 the
remaining 115-kV transmission system and substations were sold except
for the Hot Springs Substation which was sold in March FY 1983. The
present power system consists of the Elephant Butte Powerp1ant, rated
at 24.3 MW capacity, and the Elephant Butte Switchyard. RGP is
operated primari 1y as an irrigation water supply project, and power
generation is secondary in priority.

RGP power system is connected to the system of Plains Electric
Generation and Transmission Cooperative (Plains) at the Elephant Butte
Switchyard. This system, along with other power systems operating in
the area, operates under the terms and conditions of a power pooling
agreement effective October 1956. The transmission lines and
substations south of the Four Corners area which were previously part
of the RGP System, are presently owned and operated by Plains except
for the Hot Springs Substation which is owned and operated by the City
of Truth or Consequences, New Mexico, (TorC). Present customers for
RGP power are Plains and TorC.

During the first 10 years of operation (FY 1941 through FY
1950) when the water supply was adequate, RGP repaid $1,696,207 of the
power investment and $1,004,680 in interest on the investment.
Beginning in FY 1951 and continuing to FY 1979, RGP accumulated a
substantial deficit due, in part, to a shortage of water supply for
generation. From FY 1980 through FY 1985, the water supply has again
'been adequate and most of the accumulated deficit has been repaid.
RGP power system was designed to operate year-round: however, in low
water years generation has been available in 8 to 11 months a year,
with the powerplant shut down during some winter months. Only excess
energy is sold during the winter season, while firm capacity and
energy is sold in the summer season. Since FY 1965, RGP power has
been firmed up by the Colorado River Storage Project (CRSP) during the
summer season, and this permits RGP to sell 24 MW of power at firm
rates, compared to roughly 9 MW without CRSP support.

IV. HISTORY OF POWER RATES

For convenience in comparing rates, the composite rate under
each of the following rate schedules is based on a load factor of 58.2
percent.

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