Welcome To The Boulder Canyon Project April 11, 2007

Welcome To The Boulder Canyon Project April 11, 2007 Public Information Forum Presentation On The Proposed FY2008 Base Charge & Rates 3 – Year Comparison Proposed Base Charge & Rates FY 2006 Approved Total Expenses Prior Yr End C/O $ 72,811,139 $ 3,437,121 FY2006 Actual $ 66,879,721 $ 2,615,228 FY 2007 Approved $ 81,321,044 $ 1,902,909 FY 2007 Current Estimates $ 80,646,106 $ 4,912,787 FY2008 Proposed $ 84,645,695 $ 4,286,817 Less Water Sales Revenues Less Other Revenues Subtotal +Adj. for Change in Undelivered Orders/Accounts Receivable Base Charge Yr End C/O $ 530,000 $ 653,269 $ 530,000 $ 530,000 $ 530,000 $ 11,379,000 $ 57,465,018 $ 12,241,662 $ 51,369,562 $ 11,379,000 $ 67,509,135 $ 11,981,000 $ 63,222,319 $12,318,000 $ 67,510,878 $ $ 0 0 $ 1,235,933 $ (53,264) $ $ 0 0 $ $ 0 0 $ $ 0 0 $57,465,018 $ 52,552,231 $ 4,912,787 $ 67,509,135 $ 63,222,319 $ 4,286,817 $ 67,510,878 Why the Increase in the FY 2008 Base Charge & Rates • Annual Expenses from FY2007 to FY2008: – – – – – O&M expenses Other Expense – Visitor Center Uprating Principal Payments Replacements Debt Service Principal Payments Why the Increase in the Base Charge & Rates (Continued) FY 2007 (Approved) Bureau’s O&M Program * Western’s O&M Program * Total O&M Increase Other Expenses/ Visitor Center * Includes Post Civil Service Retirement Costs FY 2008 (Proposed) $ Increases 36,759,000 37,109,000 350,000 3,965,761 3,981,090 15,329 40,724,761 41,090,090 365,329 8,410,000 8,435,000 25,000 Why the Increases in the Base Charge & Rates (Continued) FY 2007 (Approved) Replacements 7,178,000 FY 2008 (Proposed) 7,442,000 $ Increases 264,000 Uprating Program Principal Payments Debt Service – Principal Payments Total Annual Expenses Increases 5,135,616 8,234,782 3,099,166 1,646,818 1,779,859 133,041 3,886,536 Offset by decreases Net Increase in Annual Expenses (561,885) 3,324,651 Overall Changes to the Base Charge FY 2007 Approved FY 2008 Proposed Increases Total Annual Expenses Less Projected FY End Carryover 3,324,651 1,902,909 4,286,817 2,383,908 Less Other Revenues Proposed Base Charge Increase 11,379,000 12,318,000 939,000 1,743 Overall Changes to the Energy & Capacity Sales FY 2007 Approved Energy Sales (MWh) Capacity Sales (kW) 3,965,355 1,721,000 FY 2008 Proposed 3,916,418 1,679,000 Decreases (48,937) (42,000) Comparison Proposed Base Charge & Rates FY 2007 Approved FY 2008 Proposed Increase % Base Charge ($) Forecasted Energy Rate Mills/kWh Forecasted Capacity Rate $/KW/Month Composite Rate (Mills/kWh) 67,509,136 67,510,878 $ 1,743 0.003 8.51 8.62 .11 1.28 1.63 1.68 $ .05 2.78 17.02 17.24 .21 1.25 Formal Rate Process Schedule • • • • Feb 14, 2007 - Publication of FR Notice April 11, 2007 - Public Information Forum May 9, 2007 - Public Comment Forum May 15, 2007 - End of Comment & Consultation Period • October 1, 2007 - Effective Date of Base Charge & Rates

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