for 50 percent of the expenditures attributable to the adverse effects of the hydro projects. We note in Chapter 17 that the Department has not made any recoveries to date. Debt servicing costs. In order to limit its exposure to unexpected increases in interest rates, the government increased the fixed-rate share of federal debt from 55 percent of gross debt in 1995 to 67 percent in 1998, where it remains today. In Chapter 8 we recommended that in light of its improved fiscal condition the government review its debt structure target to determine whether it is still appropriate. The chapter noted that based on the historical difference between long- and short-term rates, a five-percentage-point shift from fixed-rate to floating-rate debt could generate an annual saving of some $250 million.