Cost of electricity (millsAWh) = Capital recovery + O&M + DDT&E DDT&E costs.- The DDT&E cost was based on development cost estimates for the major program elements. The estimates utilized are given in table XI-1. The estimates shown are the cumulative funding requirements from the start of technology advancement through system development (1995). The amortization of these costs over the initial 30 years of SPS operation per scenario B was accomplished using the equation shown at the bottom of figure XI-1. The numerator of the equation (total funding outlay) may include interest on capital expended during the 20-year development program. If a 9-percent interest charge is used, the effect is to increase the actual cost by a factor of about 1.4. However, as will be shown later, the DDT&E amortization cost is a small fraction of the cost of electricity.
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