WSP07461

• File Number: 8143.600.30
• Description: John Martin Reservoir - Other Studies
• State: CO
• Basin: Arkansas
• Water Division: 2
• Date: 9/1/1982
• Author: Dept of Army
• Title: John Martin Dam and Reservoir - Small Hydropower Addition Reconnaissance Report
• Water Supply Pro - Doc Type: Report/Study

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FEDER. ENERGY REGULATORY COMKeIOIi
REGIONAL OFFICE .
819 Taylor Street
Fort Worth, Texas 76102

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August 6, 1982

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In reply refer to:
OEPR-FW

Mr. Jasper H. Coombes
Chief, Engineering & Planning ~ivision
,l,lbuquerque District, Corps of Engineers
Department of the Army
P. O. Box 1580
Albuquerque, New Mexico 87103

.Your Reference: S~AED-PH

Dear Mr. Coombes:

Your letter dated July 20, 1982, requested generalized power values
for your hydropower studies on the John [',artin Dam and. Reservoir-Arkansas
Ri ver.

We are enclosing generalized alternative power values based on a
market area encompassing Power Supply Area 32 together with the assumptions
applicable to these power value calculations. These are at-market values.
The real fuel escalation factors which are used to develop life cycle fuel
costs were obtained from DOE data published in the Federal Register on
November 18, 1981. These power value calculations are based on a project-
on-line date of 1990. Plant investment costs were computed using a Federal
interest r.ate.of.? 7jf3 [!erce_n.t.an_d.a non-J.ederal r.ate of 13.0 percent.

These pOl'ier values reflect a credit (an advantage factor) for the in-
creased availability of the hydro capacity as compared to its alternative.
Also, when the alternative is a nuclear or coal-fired steam electric unit
the advantage factor includes a five percent credit for increased flexi-
bility. (In case of a specific hydro facility where operating restrictions
prevent such flexibility then there will be no five percent credit and the
capacity values should be reduced accordingly.) Thus, these capacity values
equal the unit annual cost of the alternative capacity plus the advantage
factor for increased availability and a credit for increased flexibility.
The values are applicable to dependable capacity as defined in Chapter 6
of the Water Resources Council's Report - "Implementing Procedures for
Evaluating Hydro POWf~ Benefits" dated December 1981.

The values based on a coal-fired alternative are applicable for the
15.1 percent to lOO-percent range of hydro capacity factors. The values
based on a nuclear alternative can also be used for evaluation of hydro
projects with capacity factors of 60 percent or greater.