307 



capacity were Installed, consisting of three plants each having six 

 60 megawatt turbines and one 140 megawatt steam plant, plus one plant having 

 four 60 megawatt turbines and one 140 megawatt steam plant (Table A-2, line 4, 

 column C). 



The completed plant cost In 1987 dollars was based on the escalated 

 construction costs for Beaver, a regional combined cycle combustion turbine. 

 This cost was then compared to the current estimates of a similar General 

 Electric project. As no significant cost variation existed between the two 

 estimates, the escalated Beaver costs were appropriate for valuing the least 

 cost alternative to the DSI restriction rights. The total cost associated 

 with adding 1880 megawatts to the system through constructing combined cycle 

 combustion turbines was $770 million. The annual investment cost was 

 determined based on a 14 percent interest rate (consistent with the Interest 

 rate associated with new BPA Investment in the August 1982 Repayment Study) 

 and a 25-year life. The annual investment cost associated with the value of 

 reserves was $112,035 minion (Table A-2. line 6, column B). In the value of 

 reserves analysis, a nominal carrying charge is used and thus the annual 

 investment cost of the alternative to the DSI restriction rights simulates 

 BPA's repayment obligations associated with a particular project. The annual 

 Investment cost In the test year is Identical to that in FY 1982. 



Operation and maintenance cost associated with the plant for the 

 test year Is $17,653 million (see Table A-2, line 7, column B). These costs 

 are Incurred even If the unit Is not running, and are added to the annual 



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