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Show We calculated costs as if all development occurred "tomorrow" and therefore did not discount the costs of infrastructure over time. If we instead assume that the development occurs in equal increments over a 60-year period (1990-2050), and discount the stream of payments at 3%, the savings in present value (2000 dollar) terms would be $743 million. Based on our analysis of land use under the two development alternatives, the total capital cost of infrastructure for the Historical Trend Alternative is $15.24 billion, and the total capital cost of infrastructure and public services for the Land-Conserving Alternative is $14.23 billion. The Land-Conserving Alternative saves approximately $1.01 billion in capital costs over the Historical Trend Alternative. In present value (2000 dollars) terms, the savings of the Land-Conserving Alternative would be $472 million if development occurred in equal increments each year. We estimate that annual O&M costs at full buildout are $406 million for the Historical Trend Alternative, and $379 million for the Land-Conserving Alternative. Over the 60-year period 1990-2050, assuming 1/60 of capital development occurs each year, O&M costs will total $12.17 billion for the Historical Trend Alternative, and $11.37 billion for the Land-Conserving Alternative. The Land-Conserving Alternative saves approximately $806 million in O&M costs over the Historical Trend Alternative. In present value terms, the total savings of the Land-Conserving Alternative is $271 million. Page 22 December 2000 ECONorthwest DRAFT Summary Report |
