Policy & Guidance: Worksheet R
Interim Economic Guidance for Water Quality Standards
Calculation of Total Annualized Project Costs
|Capital Costs to be financed (Supplied by applicant)||$________ (1)|
|Interest Rate for Financing (Expressed as a decimal)||________(i)|
|Time Period of Financing (Assume 10 years*)||10 years (n)|
|Annualization Factor** =||
|Annualized Capital Cost [Calculate: (1) x (2) ]||$________ (3)|
|Annual Cost of Operation and Maintenance
(including but not limited to monitoring, inspection, permitting fees, waste disposal charges, repair, administration and replacement)***
|Total Annual Cost of Pollution Control Project[ (3) + (4) ]||$________ (5)|
* While actual payback schedules may differ across projects and companies, assume equal annual payments over a 10-year period for consistency in comparing projects.
** Or see Appendix B for calculated annualization factors
*** For recurring costs that occur less frequently than once a year, pro rate the cost over the relevant number of years (e.g., for pumps replaced once every three years, include one-third of the cost in each year).