Table 2.5. 11 -3 — Time Distribution of NED Electric Power Benefits for Structural Measures of Alternative 



1 



[Applicable discount rate: ] 



Time period 



P> 



Px 



AAE 



Plant data; 



Installed capacity, MW 



Dependable capacity, MW 



Intermittent capacity, MW 



Average annual energy, gWti 



Average annual capacity factor (percent) 



Benefits: 



Unit capacity value ($/kW-yr) 



Dependable capacity benefits 



Intermittent capacity benefits 



Unit energy value (mills/kWh) 



Energy benefits 



Unit system energy adjustment (mills/kWhi) . 



System energy cost adjustment 



Real fuel cost escalation rate (percent) 



Period of real fuel cost adjustment (years) ... 



Real fuel cost adjustment 











( 

 ( 







Annualized benefits. 



( 



( 



(— 



-) 1 (- 



— ) 









(- 

 (- 



) 



' Note tfiat benefits from load-altering nonstructural measures are excluded. This table may be used for displaying the benefits of 

 nonstructural measures that do not alter the load (See Section 2.5.2(b)). 

 - Time periods selected depend on nature of project and power system. 

 ' Average annual equivalent. 



Section VI— NED Benefit Evaluation 

 Procedures: Transportation (Inland 

 Navigation) 



2.6.1 Introduction. 



This chapter presents the procedure for measur- 

 ing the beneficial contributions to national econom- 

 ic development (NED) associated with the inland 

 navigation features of water resource projects and 

 plans. 



2.6.2 Conceptual basis. 



The basic economic benefit of a navigation pro- 

 ject is the reduction in the value of resources re- 

 quired to transport commodities. Navigation bene- 

 fits can be categorized as follows: 



(a) Cost reduction benefit (same origin-destina- 

 tion; same mode). For traffic that uses a waterway 

 both with and without a project, the benefit is the 

 reduction in the economic cost of using the water- 

 way. This reduction represents an economic effi- 

 ciency or NED gain because resources will be re- 

 leased for productive use elsewhere in the econo- 

 my; for example: 



(1) Reductions in costs incurred from trip delays 

 (e.g., reduced congestion by expanding lock sizes 

 at congested facilities or by imposition of conges- 

 tion fees). 



(2) Reduction in costs because larger or longer 

 tows can use the watenway (e.g., by channel 

 straightening or widening). 



(3) Reduction in costs by permitting barges to be 

 more fully loaded (e.g., by channel deepening). 



(b) Shiift of mode benefit (same origin-destination; 

 different mode). For traffic that would use a water- 

 way with the project but uses a different mode, in- 

 cluding a different waterway, without the project, 

 the benefit is the difference between the costs of 

 using the alternative mode without the project and 

 the costs of using the waterway with the alterna- 

 tives under consideration. The economic benefit of 

 the watenway to the national economy is the sav- 

 ings in resources from not having to use a more 

 costly mode. 



(c) Sfiift of origin-destination benefit. If a project 

 would result in a shift in the origin of a commodity, 

 the benefit is the difference in total costs of getting 

 the commodity to its place of use with and without 

 the project. If a project would result in a shift in the 

 destination of a commodity, the benefit is the differ- 

 ence in net revenue to the producer with and with- 

 out the project. The shift of origin-destination bene- 



49 



