This same conclusion could have been reached by calculating the "present worth of all future revenue requirements" of the SPS and the terrestrial alternatives. The total per unit fixed cost of energy also plotted in Figures 3.4 and 3.5, indicate that the purchase of an SPS (capital cost = $7.6 billion in 1974) will require those utilities which have semi-automatic fuel adjustment clauses to request a better than 20% rate increase on their base rates; the base rate would have not have reached this level until at least five years later. If the capital cost of the SPS were higher, clearly, this increase would have been higher. The regulatory delay in answering such a request would probably be quite long. The curves in Figures 3.4 and 3.5 indicate that those utilities that do not have the fuel adjustment clause or which could include the cost of SPS energy in the fuel adjustment clause will find it much easier to pay the increased fixed system costs by transferring fuel cost savings as needed. Those rate increases that would have been required because of inflation would still be required despite the addition of the SPS.
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