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U.S. Department of the Interior CONTROLLED 

Bureau of Reclamation 

Interior Region 10 California Great Basin Intranet 

CVP Power Initiative 

Section (II).1.g. of the Implementation Plan 

Non-Permanent Contractor Water Revenue Treatment 

Scope 

Develop a Central Valley Project (CVP) Standing Operating Procedure (SOP) documenting the methodology for 

crediting non-permanent contractor water revenue for cost recovery. 

Summary 

I. Policy and Procedures: 

A. Reclamation has Irrigation and Municipal and Irrigation (M&I) Policies that identify the methods of 

determining water rates for water services. 

B. Non-permanent contractor water revenue is either tied to irrigation or the M&I function because the cost 

allocation takes into account the breakdown of all CVP water and CVP commercial power when the 

beneficial purposes are identified through cost allocation study. As such, the non-project water is to pay 

back for the cost identifiable to the water purpose, more specifically irrigation and M&I. 

C. The Ratesetting Schedule B-2 for irrigation and M&I includes non-permanent contractor water revenue that 

will offset Operation and Maintenance cost on an annual basis. 

D. Water Marketing will be the type of cost offset for non-permanent contractor water revenue for the type of 

water (i.e., if irrigation non-permanent contractor water revenue is received it will offset Water Marketing 

for irrigation). This service credits contractors project wide. 

II. Timing and Disclosure 

A. Reclamation sets temporary water rates that are identified in the special water rate books in January for the 

following water contract water year. These rates are established for “non-permanent contractor water 

revenue” which is for contractors that do not have a firm supply and Reclamation is to charge for cost of 

service water rates to deliver this non-permanent water. As an example of water that may fall under this 

classification are irrigation water contractors where the contract allows for M&I supplies which are minimal 

and not on a regular annual basis. Although the amounts are minimal, Reclamation accounts for the water 

through the water and charge recordkeeping system. 

B. On a fiscal year basis, Reclamation will prepare the delivery and charge report which will include the 

deliveries and charges for this water for both types of service, irrigation and M&I. 

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C. The amount identified will be recorded as a credit to Water Marketing in the Annual Accounting process for 

both irrigation and M&I. As such, amounts identified as charges for irrigation water would credit water 

marketing for irrigation. The same would hold true for M&I. 

D. These amounts would be available on the Ratesetting website on October 1st each year for the previous 

fiscal year on schedule B-2 for irrigation and M&I. 

E. WAPA, Water Contractors, and the Financial Affairs Committee can provide their comments to the water 

contractor accountings included on the Ratesetting website to the Ratesetting Manager through a comment 

document. Comments are requested between October and end of November each year and should be sent 

to the Ratesetting Manager by email. 

F. Any notable areas that need to be discussed based on comments can be worked through the Financial 

Affairs Committee, WAPA discussions, or internally through the Financial Manager. 

G. A timetable should be established to work through comments that are significant. 

Date of Implementation 

April 2, 2021 

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