Hydropower - Compliance and Administrtion
Headwater Benefits Costs
The annual interest, depreciation and maintenance costs of the headwater
project facilities that provide downstream power benefits constitute
Section 10(f) costs. The headwater project owner, such as the Army
Corps of Engineers (or Bureau of Reclamation in the case of federal
projects) generally provides these costs and allocations. The Commission
uses the 10(f) costs in conjunction with the energy gains received
at downstream hydropower projects to determine the Section 10(f)
assessment, which is apportioned among all downstream hydropower
beneficiaries. The figure below shows the typical distribution of
headwater project costs. Only those costs identified as attributable
to joint-use power facilities are included in the allocation formula.
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