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~ , . . Department of Energy Finding of No Significant Impact Proposed Power Rate Adjustment Colorado River Storage Project The Western Area Power Administration, Department of Energy (DOE), has prepared an environmental assessment (EA) on the proposed power rate adjustment on the Colorado River Storage Project (CRSP). Based on the findings ot the EA, DOE has determined that the proposed action does not constitute a major Federal action significantly affecting the quality of the human environment within the meaning of the National Environmental Policy Act of 1969, 42 U.S.C. 4321. ~~. Therefore, no environmental impact statement is required. The proposed rate adjustment will increase the rates charged for electricity generated by facilities of the CRSP. Public Law (P.L.) 84-485, CRSP, authorizes the comprehensive development of the water resources of the upper Colorado River Basin for the purposes including regulating the flow of the river, water storage, flood control, and generation of hydroelectric power. Repayment studies were made by Western in February 1980 to determine the power revenues needed to accomplish timely repayment of the investment costs assigned to the power function. The studies indicated that a rate increase of 25.8 percent will be needed. A comparison of the existing rates under Rate Schedules UC-F2 and UC-FP2 effective June I, 1977, and the proposed rates and Rate Schedules SP-F1 and SP-FP1 is as follows: Firm Capacity and Energy Existing Proposed Demand charge $1.34 per kW month $1.76 per kW month Energy charge $0.0034 per kWh $0.0041 per kWh Composite rate @58.2% load factor $0.00655 per kWh $0.00824 per kWh Peaking capacity $1.76 per kW month ~~~~~ $1.34 per kW month At 58.2 percent load factor, the proposed rate is 8.24 mills per kWh, an increase of 1.69 mills per kWh or 25.8 percent over the existing rate. For contract violations involving unauthorized overruns, the rate will be 10 times the above rates. Comparison of the proposed increased rate for CRSP power with wholesale rates presently offered by utilities in the CRSP market area )ndicates that the rates currently offered by the utilities are considerably higher than the proposed CRSP rate. At 58.2 percent load factor, the rates offered by utilities range from about 18 to 24 mills per kWh, or about 118 to 191 percent higher than the proposed CRSP rate. Thus, the rate change provides no economic inducement for the CRSP customers to seek alternative power resources.