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<br />.... <br />(.- <br />r.. <br />- <br /> <br />r THE COST OF ELECTRICITY AND THE FINANCING OF JUNIPER DAM-- <br />'. <br />.THE ONE DAM ALTERNATIVE <br /> <br />Daniel F. Luecke <br />Environmental Defense Fund <br />November 25, 1983 <br /> <br />Introduction <br /> <br />Several times during 1983 the Colorado River Water Conserva- <br /> <br />tion Distict has reported that it is planning to eliminate the <br />Cross Mountain dam from its Juniper-Cross Mountain project.ll <br /> <br />The single dam at the Juniper site would clearly be a very dif- <br />ferent project than that originally proposed by CRWCD.~I Like <br /> <br />its predecessor, the financial feasibilitY,of the new configura- <br /> <br />tion is problematic. If the CRWCD were to depend on revenues <br />from the power sales as it had intended with Juniper-Cross Moun- <br /> <br />tain, it will be priced out of the market. If, on the other <br />hand, it were to get what it could for power [assuming, for <br /> <br />example, that the Colorado-Ute Electric Association (Colorado- <br />Ute) would purchase power at 3.5 to 4 cents a kWhll], then it <br /> <br />would face a considerable challenge in its efforts to retire the <br /> <br />debt incurred by building the project. The implications of these <br /> <br />two options are outlined below. <br /> <br />Financing the Project with Power Revenues Exclusively <br /> <br />To estimate the costs for the one darn option I have assumed <br /> <br />that the capital costs developed by International Engineering <br /> <br />1 <br />