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

3. The Branch Chief position at the Elephant Butte
powerplant, which had been vacant for an extended period,
was filled at approximately $40,000 per year.

4. Beginning in FY 1986, the General Services
Administration changed their pOlicy on vehicle rental and
Reclamation is now making prOjections for purchases of
vehicles. Purchase of all moveable equipment is amortized
over a 5-year period and charged to OM4 (20 percent per
year). This amounted to approximately $50,000 in FY 1986.

5. FY 1985 O&M costs for the Caballo Oam were lower than
expected by about $52,000 because this money was diverted
to emergency work. This work was again projected to be
done in FY 1986 along with the hiring of an engineering
technician. Power has responsibility to pay 40.45 percent
of the Caballo O&M, or $21,000.

E. Energy and Capacity Purchases. From FY 1965 through. FY
1979, energy and capaclty tor tlrmlng RGP power were purchased from
CRSP. However, since April 1979, no capacity firming charges have
been incurred, and no capacity firming is projected through FY 1989.
Energy fi rming was requi red in FY 1982, FY 1984, and FY 1985, but not
in FY 1980, 1981, and 1983. Based on the current reservoir level and
information from Reclamation operating personnel, no energy firming is
projected for FY 1986 through FY 1989. For FY 1986 and thereafter no
annual purchases of energy are projected for future years.

F. Annual Replacement Costs. Prior to FY 1963, RGP used a
replacement reserve accountlng method. From FY 1963 through FY 1965,
depreciation was computed using a straight-line method; and from FY
1966 through FY 1972, depreciation was computed using a
compound-interest method. Beginning in FY 1973, future replacement
costs were capitalized and added to the replacement account as shown
in columns 15 through 17 of the PRS (Table 2). The replacement cost
is added to the "allowable unpaid balance" of this account in the year
the replacement goes into service and then subtracted out at the end
of its estimated service life. The interest rate applied to
replacements is the current interest rate determined in accordance
with DOE Order RA-6120.2 and preceding Reclamation directives.
Estimated replacement costs for FY 1986 through FY 1989 are based on
the most current program budget documents. Estimated replacement
costs thereafter are based on projections that assume service lives of
faci lities established in the August 1981 publication issued by
Reclamation and Western entitled Replacements: Units, Service Lives,
Factors and on investment costs in the various plant accounts indexed
to the Janua ry 1985 pri ce 1 eve 1 ,

The accumulated cost of replacements in the FY 1985 Final
Revised PRS at the end of FY 1994 (the rate setting year) is

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