WSP07981

• File Number: 8446
• Description: Cache La Poudre Platte Project
• State: CO
• Basin: South Platte
• Water Division: 1
• Date: 11/1/1982
• Title: Economic Evaluation Procedures Phase II Cache la Poudre Project Study
• Water Supply Pro - Doc Type: Report/Study

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ECONOMIC EVALUATION PROCEDURES
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CACHE LA POUDRE PROJECT STUDY
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Introduction

The economic evaluations to be performed in phase II shall
be accomplished in accordance with the procedures specified
herein. Methodologies and assumptions different from those
specified in these procedures may be employed only if approved in
advance in writing by the Colorado Water Conservation Board,

Evaluation Criteria

Three evaluation criteria will be employed for the
incremental analyses to be performed:

1, Benefit-cost ratio for conservation storage
purposes--the ratio of the present value of the total
monetary benefits of conservation storage purposes
(i.e., M&I uses, improved management, and supplemental
irrigation) less associated costs, to the present value
of the total separable monetary costs of the
conservation purposes.

This criterion provides a measure of the economic
attractiveness of the specified project purposes as
public investment options, without regard for the size
of the investment required, the availability of other
options, or possible budget constraints.

2. Break-even value of peaking power--the minimum peaking
power value (expressed as a composite of energy and
capacity values) which would be required to make peaking
power benefits just equal to the separable costs of
peaking power for alternatives 2 and 7. The results
will be expressed in mills per kilowatt hour and dollars
per kilowatt year.

3. Benefit-cost ratio for run-of-river hydropower- the
ratio of the present value of the monetary benefits of
run-of-river power to the present value of the separable
monetary costs of run-of-river power.

Evaluation Procedures

Alternatives 1, 2, 7 and 8, as formulated in Phase I, each
served four purposes: (1) hydropower production (peaking and
run-of-river power), (2) new storage space for municipal water
use, (3) development of new water supplies for supplemental

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