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WSP08076
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Last modified
1/26/2010 2:30:04 PM
Creation date
10/12/2006 2:45:34 AM
Metadata
Fields
Template:
Water Supply Protection
File Number
8220.100.50
Description
CRSP - Power Rates
Basin
Colorado Mainstem
Date
11/25/1980
Author
USDOE/WAPA
Title
Environmental Assessment - Finding of No Significant Impact - Proposed CRSP Power Rate Adjustment
Water Supply Pro - Doc Type
Publication
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<br /> <br />\ <br /> <br />.. <br /> <br />. <br /> <br />. <br /> <br />As displayed in this tabulation, the CRSP supplies a minor part of <br />the total requirements in the market area. Economically, and hence <br />environmentally, the proposed rate increase would have little effect <br />in the above market area. <br /> <br />Table I illustrates the relationship which CRSP energy has to <br />the total energy consumed for some typical CRSP customers (these <br />customers consume about 80% of the total CRSP energy). The table <br />itemizes by customer, for fiscal or calendar year 1978, the total <br />kWh required, revenue from sales, the CRSP energy purchases, <br />and the effect of a pass-through of the proposed CRSP rate increase <br />(1.69 mills - an increase from 6.55 to 8.24 mills). <br /> <br />c. The relative prices between CRSP supplied power and power from <br />other sources <br /> <br />Comparison of the proposed increased rate for CRSP power with whole- <br />sale rates presently offered by utilities in the CRSP market area <br />indicates that the rates currently offered by the utilities are <br />considerably higher than the proposed CRSP rate. <br /> <br />At 58.2 percent load factor, the rates offered by utilities range <br />from about 18 to 24 mills per kWh, or about 118 to 191 percent <br />higher than the proposed CRSP rate. Thus, the rate change provides <br />no econo~ic inducement for the CRSP customers to seek alternative <br />power resources. <br /> <br />d. Switching by customers to other sources <br /> <br />An analysis of the possibility of the CRSP rate increase inducing <br />utilities to switch to other sources such as fossil or nuclear fuels <br />has been made. This analysis indicates the proposed CRSP rate is so <br />far below the cost of self-generated energy (for example, Provo City <br />has indicated its self-generation costs to be 24 mills per kWh) <br />and/or energy supplied from other sources that it is highly unlikely <br />customers would switch to other energy sources in lieu of CRSP <br />energy. <br /> <br />e. Impact on ultimate consumers <br /> <br />Table 1 shows that the impact on the ultimate consumer due to a pass- <br />through of the proposed rate increase will be modest in most cases, <br />averaging 1.3 percent, with a range between 0.2 percent for Salt <br />River Project customers and 10.7 percent for Dixie-Escalante <br />customers. The impact on other ultimate consumers not represented <br />on Table 1 would be in this range, except for those consumers who <br />receive their power directly from CRSP and not through resale from <br />others. Those in this category are the Ak-chin Indian Community, <br />the Federal Installations, and the water conservancy districts on <br />Federal Projects. In these cases, the percentage increase for power <br />would be the full 25.8 percent CRSP rate increase if the customer <br />buys all his energy from the CRSP. If the customer buys less than <br />100% of his energy from the CRSP. the percentage increase would be <br />less than 25.8 percent. While the percentage increase for these <br />entities iS,significant, it should be noted that the rate is still <br /> <br />9 <br />
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