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Furthermore, the price of aluminum, which had jumped to about 

 $1.30 per pound in 1988, was on the decline. In January 1991, 

 when the Administrator formally extended the VI rate, the price 

 of aluminum was about 70 cents. (This information comes from 

 Bonneville and reflects U.S. transaction prices for those dates.) 



Table 1 below compares the revenues generated by the VI rate with 

 the estimated revenue from the standard industrial power (IP) 

 rate (what the smelters would normally have paid) . 



Information in the table was obtained from Bonneville's Division 

 of Contracts and Rates. It contains data for a seven-year period 

 ending June 30, 1993, when the VI rate would have expired had the 

 Administrator not renewed it. 



TABLE 1 



Revenues Generated by the VI Rate 



Aluminum Smelters Only 



(In millions) 



Year VI Rate Revenue Estimated Revenue Difference 



Actual* (Standard IP Rate) 



$ 62.8 $ -6.4 



422.0 -61.4 



542.4 129.5 

 555.6 140.0 

 568.2 -8.5 

 577.2 -11.2 



518.5 -126.3 

 322.0 -68.1 



$3,568.7 $-12.4 



* Includes energy and demand (capacity) charges. Only the 

 energy charge fluctuates; the demand charge is fixed. 



** Includes three quarters of FY 93, ending June 30,1993. 

 Because the price of aluminum has remained at the "floor," the 

 difference between the two rates has continued. 



14 



