Summary Report - Central Arizona Project with Federal Prepayment Power Arrangements

Report: "Summary Report Central Arizona Project With Federal Prepayments Power Arrangement", February 1967, page 23ECONOMIC AND FINANCIAL ANALYSIS The project is economically justified. The benefit-cost ratio is 2.5 to 1.0. The comparison of benefits and costs was made on the basis of average annual equivalent values at 3-1/8 percent interest over a 100-year period of analysis. Financial feasibility is established in the repayment analysis which shows that all reimbursable costs can be returned within 50 years after completion of facilities. Project Benefits Total benefits for the multiple-purpose project are estimated to be $89,327,000 annually. Irrigation--Total irrigation benefits are estimated to be $65,434,000 annually, of which $31,558,000 are direct benefits representing increased net farm income based on farm budget analyses, and $33,926,000 are indirect effects reflecting the movement of farm products through the channels of trade and industry. These benefits are associated with water delivered at canalside. Municipal and Industrial--Benefits for canalside delivery of M&I water to the metropolitan water users of Central Arizona are estimated to be $16,853,000 annually. These benefits are based on the estimated cost of obtaining a comparable supply of water from the most likely single-purpose alternative. Commercial Power--The generation of power is primarily for the purpose of providing energy for project pumping. The value of power 23Epson Perfection 4870 Photo, 400 dpi, 8 bit, 788,300 byte