<br />B. RGP Capacity Sales. For FY 1986 through FY 1989, RGP
<br />capacity sales are assumed to occur only in the summer season and to
<br />equal the total current firm CROD under the el<isting power contracts
<br />of 24,000 kW. After FY 1989 the marketable firm capacity is projected
<br />at 24,600 kW.
<br />
<br />C. Power Revenues. The historical gross annual power revenues
<br />reached a peak ln FY 1985 of $2,506,707, and in FY 1986 revenues are
<br />estimated to increase to $2,798,020. Assuming the new power rate
<br />becomes effective with the April 1987 billing period, the gross annual
<br />revenues are estimated to be $3,193,984 in FY 1987, $2,893,984 in FY
<br />1988, $2,593,984 in FY 1989, $2,301,721 in FY 1990, and are then held
<br />constant at this level throughout the remaining years of the study.
<br />Projected power revenues are from firm capacity and energy sales,
<br />nonfirm energy sales, and small amounts of other revenues collected by
<br />the Bureau of Reclamation (Reclamation). Historical power revenues
<br />have included revenues from water delivery and transmission service;
<br />however, with the sale of the transmission system in FY 1979, the sale
<br />of the last substation in FY 1983, and a change in the method of
<br />calculating irrigation O&M in FY 1984, no future revenues are
<br />projected from these sources; The following is a discussion of the
<br />revenue sources, and the annual dollar amounts from each source are
<br />shown on Table 3.
<br />
<br />1. Firm Energy and Capacity Sales. The estimated annual
<br />firm energy sales for FY 1986 through FY 1989, are 61,200,000 kWh, and
<br />FY 1990 and thereafter are 60,925,000 kWh. FY 1986 is projected at
<br />the current rate of 15.425 mills/kWh, and FY 1987 and thereafter are
<br />projected at 18.66 mi lls/kWh, the proposed new rate. Th~ estimated
<br />annual capacity sales for FY 1986 and thereafter are 24,000 KW per
<br />month for each month of the summer 'season. FY 1986 is projected at
<br />the current rate of $6.545 per kW-month and FY 1987 and thereafter are
<br />projected at $7.931 per kW-month, the proposed new rate.
<br />
<br />2. Nonfirm El<cess Energy Sales. Since the ~lephant Butte
<br />Reservoir is full, it is anticipated that the project wi 11 have annual
<br />nonfirm el<cess energy sales as follows: Both FY 1986 and FY 1987 of
<br />58,800,000 kWh, FY 1988 of 38,800,000, and in FY 1989, 18,800,000 @ 15
<br />mills per kWh. The present interchange settlement poliCY with CRSP
<br />provides for CRSP to purchase the interchange energy from RGP at the
<br />nonfirm rate of 22 mills/kWh or the average purchase price (15 mills
<br />per kWh) paid by CRSP for the same period, whichever is less. Nonfirm
<br />energy sales, by current contract, consist of the RGP's winter
<br />generation, and any available excess energy in the summer season.
<br />After FY 1989, it is assumed that all generation wi 11 be marketerl as
<br />firm energy and no nonfirm el<cess energy sales are projected.
<br />
<br />3. Water Delivery. Historically, this income was derived
<br />from the sale of water to the irrigators and was used to partially
<br />offset irrigation O&M through FY 1983 when th~ water users'
<br />
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