demonstration tests, pilot plant, and prototype equipment. The DDT&E launch cost and orbital construction costs were projected on a 40/50 spreading function. This spreading function was selected to reflect a slower buildup to permit incorporation of test results into the prototype and operational systems. The production and construction fiscal year cost projections were based on a modified spreading function in that these costs reached a peak within a few years and leveled off for the 30-year program. As shown in Figure 5.2-2, the DDT&E costs peak at $8.OB in GFY 1987, 88 and 89. The production and construction fiscal year costs peak at just over $24.OB in GFY 1994. The dip in funding which occurs in GFY 1995 results from phasing down the earth launch vehicle production rate from 12 per year to 4 per year. Beginning in GFY 1986 the fiscal year cost levels off to $24.5B/year for the duration of the program. 5.2.4 Capital Investments and User Costs A fairly comprehensive summary of the general economic/financial picture for the SPS has been developed based on the SPS capital cost/life cycle cost estimates. The factors considered essential in establishing the ground rules for the assessment were: • Analysis based on 5-Gw photovoltaic SPS • 95^ load factor • 1985 technology base (assumed) • SPS life cycle cost/investment includes: RDT&E costs Launch Orbital assembly Ground rectenna - Operations Maintenance Taxes Insurance The specific items of annual expense, which provide a computational example for use in user cost projections are: • State and local taxes • Property insurance
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