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Show Project Economics Chapter 4 In comparison with many other river basins, the Federal water control and development program in the Connecticut River Basin has been small. All Federal engineering projects directly tied to water development have been constructed by the Corps of Engineers for flood control or navigation purposes. The watershed management program of the De- partment of Agriculture is the only other program of importance, being directed toward reducing ero- sion and sedimentation, and retarding runoff. benefit-cost ratio would be 1.2 to 1, somewhat lower than for the earlier projects. This is to be ex- pected because the more favorable sites would be used first. The low benefit-cost ratio on these proj- ects suggests the consideration of flood plain zoning as a possible alternative to additional flood preven- tion works. It also suggests the importance of deter- mining the extent to which adding multiple-purpose features would provide the desired flood protection, with higher benefit-cost ratios. Flood Control The Connecticut experiences severe floods and the flood plain is densely settled. Flood losses therefore have been large. The benefits from flood prevention also have been large. The Corps of Engineers reports a benefit-cost ratio on all com- pleted flood control projects of 2 to 1. Estimated costs for completed flood control projects is 39.7 million dollars, of which 34.4 million is Federal and 5.3 million non-Federal. Total estimated annual charges for these projects are 1.88 million dollars, of which 1.48 million is Federal and $397,100 non- Federal. Total estimated annual benefits are 3.7 million dollars. Thus Federal funds have borne about seven-eighths of the construction costs and approximately four-fifths of the annual charges. Channel work on the Mad River costing $213,000 is to be completed in 1951. The estimated costs of authorized flood control projects is 89.2 million dollars; these are all Federal costs. The estimated annual charges on these projects are 3.8 million dollars. Over-all benefit- cost ratio on these projects is 1.4 to 1. Additional recommended flood control projects would cost nearly 25 million dollars and the total Navigation Recent navigation improvements on the lower river have cost about $927,000 for construction. The total cost of navigation works has been about 2.4 million dollars, with 1.6 million as the total maintenance cost to 1950. Annual benefits are valued at 1.5 million dollars. The proposed navigation projects include a 16- foot channel to Hartford and a 12-foot channel to Holyoke. The total construction costs on this pro- gram including power facilities are estimated to be 32.6 million dollars. Annual carrying charges would be 1.8 million dollars. The annual benefits are estimated at 3.3 million dollars, two-thirds of which would be from power revenues and one-third from navigation benefits. Power Rates and Costs Power rates and costs in New England are one important aspect of the economics of water devel- opment. Roughly a fourth of New England's power is furnished from hydroelectric sources; the balance is thermal-generated power. The five southern 485 |
