Summary Report - Central Arizona Project with Federal Prepayment Power Arrangements

Summary Report, Central Arizona Project with Federal Prepayment Power Arrangements, February 1967, page 32Repayment without Ad Valorem Tax This analysis proposes that irrigation water be sold at an average of $10 per acre-foot at canalside as in previous Central Arizona proposals. Municipal and industrial water would be sold at an average of $56 per acre-foot, an increase of $6 over the $50 rate in previous proposals. The increased revenues accruing from the M&I sales would provide sufficient repayment assistance to achieve total project repayment without an ad valorem tax. Pumping power rates would be 3 mills per kilowatt-hour for irrigation and 5 mills per kilowatt-hour for M&I. Surplus power would be sold commercially to yield an average return of 5 mills per kilowatt-hour. The power rates are the same in both repayment analyses presented herein. Repayment will be accomplished within 50 years after completion of facilities. Summary of Repayment Analysis without Ad Valorem Tax Purpose Reimbursable Costs Net Revenues Available for Repayment Surplus or Deficit Irrigation $322,301,000 $95,846,000 -$226,455,000 Municipal and industrial 208,813,000 363,906,000 155,093,000 Power, Total 94,439,000 166,776,000 72,337,000 Fish and wildlife 334,000 334,000 -- Recreation 1,742,000 1,742,000 -- Total $627,629,000 $628,604,000 $975,000 Combination of Repayment Approaches Under the basic estimates and assumptions of this report as to costs, interest rates, water supply, power marketing, and other factors, two approaches to the repayment of the project are presented. Insofar 33Epson Perfection 4870 Photo, 400 dpi, 8 bit, 1,050,387 byte