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

For future years (FY 1986 and after), power revenues over and
above the amount needed to pay annual O&M. purchased power. other. and
interest expenses are to be applied to repay (1) the debts and
interest incurred in the deferred interest category, (2) the original
power investments and/or replacements and additions including
interest. and (3) the irrigation investment assigned to be repaid by
power within the prescribed repayment period. In order to derive the
lowest power rate possible, the highest interest bearing investments
are to be repaid first, to the extent possible. while still assuring
that each investment is repaid by the end of its required repay~ent
peri od.

B. Results of FY 1985 Repayment Studies

1. Current Repayment Study Using Existing Power Rate.
Figure 1 is a chart showing the cumulative results of the current
repayment study using the existing power rate. It shows that future
cumulative power revenues will be sufficient to pay annual O&M
expenses and interest costs and to repay the deferred interest dehts,
but will not be sufficient to repay the power investment within
allotted time periods (50 years).

Table 1 is the FY 1985 Current PRS including explanatory
notes for each column.

2. Revi sed Repayment Study Usi ng Proposed Power Rate.
Figure 2 shows the cumulative results of the revised repayment study
using the proposed power rate. It shows that the future cumulative
power revenues will be sufficient to pay annual O&M expenses and
interest and to repay within allowable time frames all power
investment and replacement costs and all irrigation costs required to
be repaid from power revenues.

Table 2 is the FY 1985 Final Revised PRS including
explanatory notes for each column. The following section provides a
discussion of the supporting data for the revised PRS.

VII. SUPPORTING DATA FOR FY 1985 FINAL REVISED PRS

A. RGP Ener~ Generation and Sales In the FY 1985 Final
Revised PRS include in this brochure, the 2D-year average generation
(FY 1965 through FY 1984) of 61 GWh used in the post-1989 marketing
plan was used to estimate generation for years beyond FY 1989.
However, because the Elephant Butte reservoir was filled to capacity
in FY 1985 due to a series of unusually high water years, the
generation for the next 4 years is expected to be 120 GWh for both FY
1986 and FY 1987, 100 GWh in FY 1988, and 80 GWh in FY 19R9. For each
of these years, firm sales are estimated at 61 GWh and any amounts
above 61 GWh are nonfirm (excess energy) sales.

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