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Last modified
1/26/2010 2:47:27 PM
Creation date
10/12/2006 2:50:36 AM
Metadata
Fields
Template:
Water Supply Protection
File Number
8147
Description
Arkansas River Basin - Gunnison-Arkansas Project
State
CO
Basin
Arkansas
Water Division
2
Date
1/1/1954
Author
Unknown
Title
Gunnison-Arkansas Project - Reply to Questionnaire from John P Saylor to Secretary of the Interior - RE HR 236
Water Supply Pro - Doc Type
Report/Study
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<br />0017~2 <br /> <br />Table 9 presents a similar study to table 8 and assumes an interest <br />rate of 2-1/2 percent on the po'~r investment and a 50-year amortization <br />period folloning a 9-ycar development period. This study sh01'IS that the <br />specified repayment conditions could be met by selling firm pov~r at <br />5.2 mills por kilo.mtthour and secondary energy at 3.5 mills per kilo- <br />watthour. <br /> <br />7.(0.) -Questien - In vie,", of the proposal submitted by private <br />pOYler companies to finance and build the necessary transmission fa- <br />cilities in connection .'Iith the proposed hydroelectric pOllcr dovelopl1l6nt <br />of the project, "hat would be the effect on the financial feasibility <br />and financial program of the proposed project if the pav'~r transmission <br />facilities were eliminated from the proposed project. <br /> <br />Ans,var - In the event that private prn"ur interests would construct <br />the transmission facilities necessary for the dis;)osal of project pOIler <br />the total project construction cost would be reduced to :::,171,53?,OOO <br />based on October 1953 prices. The power investmont would be 037,289,000 <br />includinfO interost during construction 2.nd could be repaid in 40 years <br />following a 9-yeo:r development period. Parler would be delivered at the <br />high voltage side of the powurplant switchyards and sold at tho rate <br />of 4.6 mills per kilo,'latthour for firm energy and 3.0 mills per kilo- <br />watthour for secondary energy. 'i!hile these rates would result in <br />revenues sufficient to amortize the pm.er investment in four years loss <br />time than as ShOl'ffi in Financial Study No.1, all additional four years <br />of a~~lieation of full net po"er revenues to the irrigation invGstmont <br />would be required in order to :cctire all reimbl.'rsable project costs in <br />a period of 70 yeo.rs. Municipal water and irrigo.tion investments <br />Hould remain uncho.nged J.nd would be repaid in t:lC same periods as shm'l!1 <br />in table 5, Financial Study No.1. <br /> <br />7.(b) Question - Asslning elimination of p~1er transmission fa- <br />cilities from the project,furnish detailed information on costs and <br />financial aspects of the project so modified, in parallel to the infor- <br />mation requested in questions 1, 2 o.nd 3. <br /> <br />Ansvmr - The project construction costs .rithout the pov~r trans- <br />mission facilities are segregated into the major project purposes in <br />table 10. This t::.ble also ShOl'lS the alloccltion of construction costs; <br />opcr<ltion, maintc.'YJance <lnd roplacemc-nt costs; and inter(cst during con- <br />struction to the varieus project purposes. <br /> <br />A detailed analysis of the project repayment is presented in <br />table 11, Financial Study Ho. 3. This t able also shows the source <br />and ameunt of annual irrigation and municipal ,vater revenues. <br /> <br />- 7 - <br />
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