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

irrigation the cost of a reservoir slightly smaller than Elephant
Butte plus the existing cost of all irrigation features, exclusive of
storage. Under the priority-of-use method, the total cost of Elephant
Butte Reservoir was charged to irrigation since power is incidental
and secondary in priority to the use of water for irrigation. The
average of the two methods resulted in an allocation of joint costs of
20.8 percent to power and 79.2 percent to irrigation.

Beginning in FY 1984 the allocation of joint costs was changed
because the water users completed the repayment of their construction
costs contract. Power still has the responsibility to repay 20.8
percent of the costs of the Elephant Butte Dam and Reservoir, 100
percent of the Elephant Butte Powerplant and related facilities, but
only 40.45 percent of the Caballo Dam and Reservoir.

2. Interest Rates. The interest rate applied to power
investments, replacements, and to deficits incurred through FY 1970
was 3 percent. For project investments, replacements, and deficits
after FY 1970, the interest rates used were the current rates as
required by DOE Order RA-6120.2 and previous Interior Department
guidelines as follows:

FY Interest Rate (percent)
1971 5.375
1972 5.875
1973 5.5
1974 5.625
1975 6.125
1976 6.625
1977 7.0
1978 7.0
1979 7.5
1980 8.0
1981 8.5
1982 9.0
1983 9.5
1984 10.75
1985 12.375
1986 and thereafter 11.375

3. Power Investments. The RGP investment reached a high
of $10,631,727 before the sale of the transmission lines and
substations. The power investment in service as of the end of FY 1985
was $5,819,141 as shown in column 18 of the PRS (Table 2), and is
expected to increase to $7,205.091 by FY 1990. Of this amount, the
original investment of $2,827,468 has to be repaid by FY 1990.

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