Financial forecasts—power supply borrowers.

CFR · 2024-01-01 · US · Title 7

(a) The requirements of this section apply only to financial forecasts submitted by power supply borrowers in support of a loan from RUS. The financial forecast prepared by power supply borrowers shall demonstrate the effects that the addition of generation, transmission and any distribution facilities will have on the power supply borrower's sales, costs, and revenues, and on the cost of power to the member distribution systems. (b) The financial forecast shall cover a period of 10 years. RUS may request projections for a longer period of time if RUS deems necessary. (c) Financial forecasts prepared in support of loan applications to finance additional generation capacity shall include a power cost study as set forth in § 1710.303. (d) In addition to the requirements set forth in § 1710.300, financial forecasts prepared by power supply borrowers shall: (1) Identify all plans for generation and transmission capital additions and system operating expenses on a year-by-year basis, beginning with the present and running for 10 years, unless a longer period of time has been requested by RUS. (2) Integrate projections of operation and maintenance expenses associated with existing plant with those of new proposed facilities to determine total costs of system operation as well as the costs of new generation and generation-related facilities; (3) Provide an in-depth analysis of the regional markets for power if loan feasibility depends to any degree on a borrower's ability to sell su

official document · source cfr-2024 · id 7:§ 1710.302