ArkNavReport_TOC_Acronyms_ExecSummary.doc

42 to 10 portrayed in table e 2 the survey also asked

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was further discounted in rounding the aggregate effect on river traffic from 1.42 to 1.0 (portrayed in Table E-2). The survey also asked operators if they would modify their towboat horsepower under the 2, 3, and 4 components. No towboat operators reported an expectation of shifting to higher or lower horsepower boats in response to the three flow management components. Savings were calculated by multiplying the average transportation savings per ton that was estimated in the 2001 Flow Management Rate Study by the Tennessee Valley Authority (TVA) by the traffic forecasts. The average savings per ton for 2001 traffic was $0.49 although specific rates used varied by commodity. This savings per ton was multiplied by projected tonnage to compute the benefits of components 2, 3, and 4. A second method for measuring the cost reductions from changes in the operating plan for the MKARNS is to measure the average number of navigation days gained by a new operating plan. At the present time, the MKARNS is closed between 20 and 40 days per year due to excessively high flow rates that stop navigation. A reduction in cost method was employed to estimate the towboat operator savings based upon a daily operator cost for tying up (lay-up) of the vessel and tow. Some of the components considered provide for flows above 150,000 cfs in order to reduce the number of days when navigation could not occur (100,000 cfs). Benefits for these high flows were based on the following formula. Gained Days X (Daily Towboat + Barge Expense) X Number Boats = Annual Benefit To calculate the total economic impact to navigation from flow management, the cost reduction from efficiency gain was added to the cost reduction from a change in operating days. Component 1: No Action Component. The No Action component was considered in order to establish baseline conditions against which the other flow management components were evaluated and compared. Component 2: 175,000 cfs Component (FM 175). There would be annual net benefits approximating $7.9 million under this component compared to No Action. Annual net benefits are defined as the total annual benefits minus total annual costs of the component. Positive economic benefits would be associated with navigation and hydropower. Negative economic impacts would be associated with real estate, tourism and recreation, non- agricultural and agricultural properties as a result of flooding from raising the release from 150,000 cfs to 175,000 cfs. Annual navigation benefits would approximate $9.2 million under this component, with the remaining annual benefits associated with hydropower ($1.3 million). Tourism and recreation costs ($1.4 million) comprise over 50% the negative impacts under this component. Annual real estate costs would approximate an additional $0.7 million compared to No Action, while annual non-agricultural and agricultural property damages would approximate $0.5 million.
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