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

Composite Rates for RGP~F1 are:

21.4 mi lls/kWh for September 1982 through August 1983.
27.0 mi lls/kWh for September 1983 and thereafter.

Repayment Studies prepared for FY 1983 showed that a composite
rate of 30.85 mi lls/kWh for firm power and energy and 22.0 mi lls/kWh
for nonfirm excess energy would be required for RGP payout. These new
rate schedules have been in effect from October 1, 1984, to present.
The firm rate schedule was designated RGP-F2, and the nonfirm excess
energy rate schedule designated as RGP-EE1. The components of the
rate were as follows:

Demand Charge:
$6.545 per KW-month

Energy Charge:
15.425 mills/kWh

Composite Rates for RGP-F2 is:
30.85 mills per kWh

Nonfirm Rate for RGP EEl is:

22.00 mi lls per kWh

V. PROPOSED POWER RATE

Based on data available for FY 1985, an FY 1985 Current PRS was
prepared using the existing power rates. The study showed that the
existing rates would not be sufficient to pay the annual operating
expenses and to repay both the RGP power investment and deferred
annual expenses within the allotted repayment periods. An FY 1985
Final Revised PRS was then prepared to determine the power rate needed
to accomplish timely repayment of all costs assigned to the power
function.

Since the existing power rate was estahlished, there have been
significant increases in the annual O&M expenses. The average annual
expenses in the FY 1985 Final Revised PRS exceed the average annual
expenses for the FY 1983 Revised PRS by $66,800. The average annual
O&M expenses increased $96,922, with a $19,071 decrease in interest
expense, a $601 increase for other expenses, and a $11,n52 decrease
for power purchases. The increases of O&M and other expenses are
substantially offset by a $30,723 reduction in interest and purchase
expenses.

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