Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

1

Bureau of Reclamation, Mid-Pacific Region Business Practice Guidelines 

for 

Accounting for Central Valley Project (CVP) 

Water Transfers 

1.0 Purpose 

The purpose of these guidelines is to define a step-by-step process for accounting for CVP 

Project water transfers between CVP water contractors. 

2.0 Scope

These guidelines apply to CVP contractors under water service, water right settlement contracts 

or exchange contracts. These guidelines are effective as of May 15, 2008. These guidelines 

were implemented and used in draft form during the period March 1, 2007 through May 14, 

2008. 

3.0 Authorities and References 

a. Central Valley Project Improvement Act (CVPIA) 

b. Irrigation Water Ratesetting Policy, 1988 

c. Municipal & Industrial (M&I) (Interim) Water Ratesetting Policy, 1993 

d. Policy on Water Rates for Water Transfers from One CVP Contractor to Another CVP 

Contractor, April 28, 2005 

e. Interim Water Transfers Procedure Guide 

f. Revenue Application Policy for Water Transfers (in progress by MP 3400) 

g. Reclamation Reform Act (Full Cost Water Rates) 

h. Reclamation Wide Transfer Policy (Reclamation Manual/Policy WTR P02) 

4.0 Expiration 

These guidelines supplement but do not replace related U.S. Department of the Interior and 

Reclamation-wide policies, directives, and standards. The guidelines supersede all previous 

regional administrative guidance on this subject and will remain in effect until formally revised 

or rescinded.

5.0 Contacts 

 

Financial Manager, 916-978-5550, kburks@mp.usbr.gov

Ratesetting Services Manager, 916-978-5367, ywesson@mp.usbr.gov 

Resources Manager, 916-978-5201, rwoodley@mp.usbr.gov

 All located at 2800 Cottage Way, Sacramento CA 95825 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

2

6.0 Definitions 

a. Ability-to-Pay: Provision of Reclamation Law (authorized by the Act of June 17, 1902, as 

that statute has been amended and supplemented by among other statues, the Reclamation 

Project Act of August 4, 1939, as it relates to the repayment of the project construction 

costs allocated to irrigation and section 3407 (d)(2)(A) of the Central Valley Project 

Improvement Act (CVPIA), Title XXXIV of the Projects and Authorization Adjustment 

Act of October 30, 1992, as it relates to the payment of Restoration Fund (RF) charges) that 

permits irrigation contractors to apply for relief from their capital repayment obligations 

and restoration fund charges based upon an economic analysis of their ability to meet that 

obligation. The analysis determines the portion of the net farm income attributable to the 

off farm water supply (supplies) after allowances have been made for returns to farm 

investment, farm family labor, and management. 

b. Conveyance Pumping Component: The conveyance pumping capital cost components 

include the costs of the main Project pumping facilities used to move irrigation and M&I 

water through the Project: Corning Pumping Plant, Dos Amigos Pumping Plant, O’Neill 

Pumping-Generating Plant, and the Tracy Pumping Plant. Separate allocable capital costs 

per acre-foot are computed for each of the pumping plants and those costs per acre-foot are 

assigned to contractors whose water is pumped through these pumping plants. As of 2006, 

there were no allocable costs per acre-foot for O&M (including project use energy) as these 

costs are recovered by separate agreements with water authorities. 

c. Cost of Service Water Rates: The term “cost of service water rates” means the annual 

rate for irrigation and M&I water established pursuant to the then applicable water 

ratesetting policies which will recover all costs assigned to the irrigation and M&I water 

supply functions, respectively, within the established repayment period. This includes 

recovery from each contractor, within the authorized repayment period, of applicable: (1) 

annual O&M costs; (2) interest costs; (3) capital investment costs; and (4) O&M deficit 

balances. 

d. Direct Pumping Component: In most instances, the direct pumping O&M and capital 

cost components are based on the costs associated with re-lift pumping plants (the 

exception being Gianelli PGP). These plants pump water exclusively for specific 

contractors. These facilities were constructed by Reclamation and are now operated and 

maintained by the local water districts whose water they pump. Project use energy is a 

component of both direct pumping allocable O&M and capital costs per acre-foot. 

e. Exchange Contractors: After completion of the Friant Dam, the United States has been 

and is storing and diverting said reserved waters of the San Joaquin River for use within 

and without the watershed of said river by others than Central California Irrigation District, 

Columbia Canal Company, San Luis Canal Company, Firebaugh Canal Company 

(Exchange Contractors), and has been and is supplying the Exchange Contractors in lieu of 

such waters with substitute water from the Sacramento River, the Sacramento-San Joaquin 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

3

Delta , and other sources through the Delta-Mendota Canal of said Project and by other 

means. 

f. Full Cost Lands: Eligible nonexempt land directly or indirectly owned or leased that 

exceeds the non full-cost entitlement and may receive Reclamation irrigation water only at 

the full cost rate. Nonexempt land means either irrigation land or irrigable land that is 

subject to the acreage limitation provisions of the Reclamation Reform Act. 

g. Recapture of O&M: In certain instances where a settlement contractor has been granted 

ability-to-pay relief, transferring project water in excess of that used can result in a change 

in the contractor’s ability-to-pay (transferor’s rate). This has been identified as recapture of 

O&M in the applicable contractor’s “Results of the Ability-to-pay Analysis” letter. Any 

increase in ability to pay will be collected at the time of the transfer. Consult the 

Agricultural Economist in the Ratesetting Branch or read the contractor’s letters to 

determine which contractors would be impacted. The transferor’s rate will be calculated by 

the Agricultural Economist in the Ratesetting Branch when appropriate. 

h. Renewed Contracts: Water service or Sacramento River Settlement contracts which have 

been renewed after passage of the CVPIA or which have been replaced by an Interim 

Renewal Contract which provides that the rate for transferred water shall be the transferor’s 

cost of service rate plus incremental costs are referred to as “renewed contracts”. Renewed 

contracts, for purposes of these guidelines, also include the four San Joaquin River 

settlement contracts and the Mendota Pool settlement contracts1. 

7.0 Roles and Responsibilities 

a. Resources Management. The Resources Management Office is responsible for: 

1. Providing overall CVP policy on rates for water transfers. 

2. Promptly informing area and field offices, the Ratesetting Office, and Accounting 

Office of long-term transfer agreements. 

b. Area and Field Offices. These offices are responsible for: 

1. Calculating the appropriate water transfer rates and charges using these guidelines. 

2. Developing and retaining appropriate documentation supporting each transfer. 

3. Recording water transfers in the Bureau of Reclamation’s Water Operations and 

Recordkeeping System (BOR-WORKS) in the month after the transfer occurred. 

 

1 Under the Interim Water Acquisition Program agreement between the United States (U.S.) and 

the Exchange Contractors, dated June 3, 2006, the transferor pays on behalf of the Exchange 

Contractors. Since the Exchange Contractors do not have a payment responsibility for their 

substitute water, the Exchange Contractor 5-year transfer activity agreement participants and 

Madera Irrigation District shall pay directly to Reclamation the applicable water rate(s) for any 

additional facility services required to effectuate the transfer.
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

4

4. Using the regional CVP transfer form, Exhibit D, to identify rates and charges 

associated with the transfer. Copies must be provided to regional Resource 

Manager, Accounting Officer, and Ratesetting Manager within 5 business days of 

transfer approval. 

5. Ensuring that Resources Manager and Financial Management Division are informed 

of short-term transfer agreements. 

c. Ratesetting Services is responsible for: 

1. Developing allocable rates per acre-foot and ability-to-pay relief rates.

2. Accounting for and applying water transfer revenues.

3. Performing quality assurance reviews of water transfer rates to ensure they are 

accurate. 

4. Ensuring guidance for accounting for water transfers is complete and up-to-date. 

d. Accounting Services is responsible for: 

1. Accounting for payments for the water transfers. 

e. Contractors are responsible for: 

1. Requesting approval for and transferring water according to contract terms and 

 conditions, and with terms and conditions delineated in the approval letter. 

 

8.0 Principles 

These guidelines are intended to provide the area offices, field offices, and the Financial 

Management Division with the guidance necessary to consistently and accurately account for 

water transfers between CVP contractors water under water service, repayment, Settlement, and 

Exchange contracts. Concerns not addressed in these guidelines should be brought to the 

attention of the Financial Manager. 

9.0 Process for Determining Rates and Charges and Responsibility for their Payment 

Water rates and charges are determined through these guidelines. These instructions supplement 

the Final Policy on Water Rates for Water Transfers from One CVP Contractor to Another CVP 

Contractor, dated April 28, 2005. 

Responsibility for Payments of all Reclamation rates and charges, except for full-cost interest as 

previously noted, associated with transferred water are the responsibility of the transferor. 

Payment of all conveyance O&M (including project use power) rates and charges are the 

responsibility of the transferor or transferee consistent with the policies and procedures of the 

responsible non-federal operating entity(ies). 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

5

9.1 Determining Water Rates and Charges for Renewal Contractors

Generally, the water transfer rate is the transferor’s cost of service rate adjusted to reflect the 

additional services provided and reduced for direct pumping O&M services not used. 

a. Determining additional services: Additional services are costs incurred for use of 

Reclamation facilities and services that would not otherwise occur absent the transfer. 

They may include, but are not limited to, additional operations and maintenance costs for: 

• Storage

• Direct pumping

• Conveyance (Folsom-South Canal only), and

• Conveyance pumping (South of Delta transfers related to Dos Amigos pumping 

for Cross Valley Canal contractors and potentially Tracy pumping if the water is 

moved via Article 55)

certain additional capital costs for: 

• Storage

• Conveyance

• Conveyance pumping, and

• Direct pumping.

Capital costs do not include San Luis Drain capital.2

 Reclamation reserves the right to 

assess appropriate fees (based on CVP reimbursable costs not included in the rate 

calculations) when there are special services that are not captured in standard transfer 

allocable costs per acre-foot components.

b. Identifying reduced services. Reduced services are direct pumping operations and 

maintenance costs3

. A reduction in the use of a capital facility will not constitute a 

reduction in service for the purposes of determining a water transfer rate as they are fixed 

costs to be recovered regardless of the transfer action. 

c. Other factors. Other factors that must be considered include whether or not: 

(1) the contractor has an ability-to-pay limitation; 

(2) tiered pricing applies; 

(3) the water to be transferred is being applied to lands subject to payment at the full cost 

 rate; 

(4) a Friant surcharge is applicable; and 

(5) a Restoration Fund payment is applicable. 

 

2

 This is a revision from the April 28, 2005 policy on water rates for water transfers. 

3

 Water authorities incur conveyance pumping O&M costs. 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

6

9.2 Determining Transfer Rate 

Two decision trees have been created for use in determining the appropriate transfer rate. 

Exhibit A is the decision tree applicable to transferors who have entered into a renewal contract. 

Exhibit B is the decision tree applicable to transferors who have not executed a renewal contract. 

Each exhibit is followed by a series of tables within which are the technical instructions for 

determining the appropriate transfer rate. Listed below is a summary of the tables. 

Exhibit A – Transferor is a renewal contractor 

 Table Transferor Transferee

 A-1 Irrigation Irrigation 

 A-2 Irrigation M&I 

 A-3 M&I M&I 

 A-4 M&I Irrigation 

Exhibit B – Transferor is not a renewal contractor 

 Table Transferor Transferee

 B-1 Irrigation or M&I Irrigation 

 B-2 Irrigation or M&I M&I 

Exhibit C provides examples for calculating water transfer rates. 

Exhibit D is the water transfer form.
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

 

 Exhibit A 

Transferor is a Renewed Contractor*

***Start with the COS Rate of the Transferor***

Water Use Irrigation Water Use M&I

Transferor Transferor

is Irrigation A-2 A-4 is M&I

 A-1 A-3 

Transferee Transferee

is Irrigation is M&I

Both NOT Both Ability-To-Pay ATP does NOT

ATP Contractors (ATP) Contractors apply to M&I water

Adjust Transferor

Determine COS COS for ATP

Exclude Transferor

Consider Exclusions Direct Pumping

O&M rate

Include Additional

Consider Inclusions Service Costs per

Acre-Foot of Transferee

Include if appropriate:

Other Consideration Tiered Pricing

Full Cost

Friant Surcharge

Restoration Fund

Include Restoration Charge Charge (Adjust

for ATP)

Final Irrigation Final M&I

Transfer Rate Transfer Rate

* This flow chart is a general description of the process.

See referenced write up for process detail.
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-1 Page 2 of 13 

Transferor: Irrigation, Renewed Contract 

Transfer Purpose: Irrigation 

 

WORKSHEET DEVELOPMENT: Develop a worksheet for the proposed transfer and 

identify the transferor’s cost of service rate. 

Do both the transferor and transferee have ability to pay relief? 

Note: Ability to Pay relief does not apply to Full Cost lands. 

1. Yes. Do steps a through g below (See Exhibit C, Examples 1 and 2) and consider 

 Recapture of O&M (see definition). If No, go to number 2. 

 

 a. Develop a worksheet and identify the transferors cost of service rate. 

 i. Determine capital relief of the transferor’s rate as follows: 

(a) If both the transferor and transferee have full capital and 

 restoration fund relief, the transferor’s allocable capital cost per acre-

 foot and the restoration fund charge is relieved in full; 

(b) If one or both have partial relief, the greater of the sum of the 

 capital cost per acre-foot and restoration fund charge paid by either 

 contractor will be applied to the transfer water to the extent of the 

 allocable capital cost per acre-foot of the transferor plus restoration 

 fund charge. If there is any remaining to be relieved, the amount 

 relieved is to the restoration fund charge then, if any remains, to the 

 allocable capital cost per acre-foot of the transferor. 

b. Does the transfer require additional CVP services? 

i. No. Do not include allocable costs per acre-foot components for 

additional services. 

ii. Yes. Identify allocable costs per acre-foot components for additional 

services used, and include an additional allocable cost per acre-foot 

component for each identified additional facility used through Irrigation 

water ratebook schedule A-2Bb (Capital) and A-2A (Operation and 

Maintenance). Additional allocable costs per acre-foot components 

should reflect costs per acre-foot components of the transferee. 

(a) Do not include allocable costs per acre-foot components for the San 

Luis Drain capital cost and Kesterson clean-up costs as additional 

services.

Are Both 

Contractors 

ATP? 

Additional 

Services? 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-1 Page 3 of 13 

(b) Include direct pumping capital as an additional component (This 

component could also be reflected in the transferor’s cost of service 

rate as it is a fixed cost to be recovered regardless of the transfer 

action).

c. Does the transfer require fewer CVP O&M services? 

i. No. 

(a) Do not deduct any components from the transferor’s rate. 

(b) Do not deduct San Luis Drain Kesterson cleanup costs. 

ii. Yes. Deduct appropriate O&M services. Supporting documentation is 

needed to document actual financial savings realized by the United States 

as a result of the transfer. 

(a) Deduct direct pumping O&M allocable costs per acre-foot 

component of the transferor as identified on schedule A-2A of the 

Irrigation water ratebook. 

d. Does the transfer require fewer CVP capital services? 

i. No. No adjustments are made as these are fixed costs. 

ii. Yes. No adjustments are made as these are fixed costs. 

e. Do tiered water rates apply to transferor’s water? (tiered water rates are not 

applicable for Sacramento River Settlement Contractors). 

i. No. Do not add tiered water rates. 

ii. Yes. Add the appropriate tiered irrigation water rates, dependent upon the 

applicable tier (Consult the long-term contract, Exhibit B, for the 

applicable rate. This exhibit is updated annually. If uncertain whether 

tiered charges apply, the tiered rate will be included in approval letter and 

accounted for when water is transferred). 

f. Is the transferred water being delivered to full cost lands? 

i. No. Full cost interest rates do not apply. 

ii. Yes. In addition to the costs determined above, the transferee is required 

to pay interest on all capital. That interest amount shall equal the 

transferee’s full cost rate less the payment requirements determined in 

steps a through e, above. These costs apply and are to be paid by the 

transferee the month after delivery. 

g. Apply current Irrigation Restoration Fund Charge to the extent of partial or 

full ATP for the transferee. Refer to Section 1.a.(i)(a) and (b) for 

determination of the Restoration Fund charge. 

Fewer O&M 

Services? 

Fewer Capital 

Services? 

Tiered Water 

Rates? 

Water on Full 

Cost Lands? 

Restoration? 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-1 Page 4 of 13 

h. Is the water being diverted from the Friant-Kern Canal, Madera Canal or 

Millerton Reservoir? 

i. No. Friant surcharge does not apply. 

ii. Yes. Friant surcharge applies. (There is no relief from the 

Friant surcharge based on legislative authority.). 

i. Apply the Trinity Public Utility District Assessment on delivered water as 

 identified in the letter to CVP water users dated March 12, 2007. 

Do both the transferor and transferee have ability to pay relief? 

2. No. Do steps a through h below (See Exhibit C, Examples 3 through 5) and 

consider Recapture of O&M (see definition). 

a. Develop a worksheet for the proposed transfer and identify the transferor’s 

cost of service rate. 

b. Does the transfer require additional CVP services? 

i. No. Do not include allocable costs per acre-foot components for 

additional services. 

ii. Yes. Identify allocable costs per acre-foot components for additional 

services used, and include an additional allocable cost per acre-foot 

component for each identified additional facility used through Irrigation 

water ratebook schedule A-2Bb (Capital) and A-2A (Operation and 

Maintenance). Additional allocable costs per acre-foot components 

should reflect costs per acre-foot components of the transferee. 

(a) Do not include allocable costs per acre-foot components for the San 

Luis Drain capital cost and Kesterson clean-up costs as additional 

services. 

(b) Include direct pumping capital as an additional component (This 

component could also be reflected in the transferor’s cost of service 

rate as it is a fixed cost to be recovered regardless of the transfer 

action.)

c. Does the transfer require fewer CVP O&M services? 

i. No. 

(a) Do not deduct any components from the transferor’s rate. 

(b) Do not deduct San Luis Drain Kesterson cleanup costs. 

ii. Yes. Deduct appropriate O&M services. Supporting documentation is 

needed to document actual financial savings realized by the United States 

as a result of the transfer.

Friant 

Surcharge? 

Trinity PUD 

Assessment 

Are Both 

Contractors 

ATP? 

Additional 

Services? 

Fewer O&M 

Services? 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-1 Page 5 of 13 

(a) Deduct direct pumping O&M allocable costs per acre-foot 

component of the transferor as identified on schedule A-2A of the 

Irrigation water ratebook. 

d. Does the transfer require fewer CVP capital services? 

 i. No. No adjustments are made as these are fixed costs. 

ii. Yes. No adjustments are made as these are fixed costs. 

e. Do tiered water rates apply to transferor’s water? (tiered water rates are not 

applicable for Sacramento River Settlement Contractors) 

i. No. Do not add tiered water rates. 

ii. Yes. Add the appropriate tiered irrigation water rates, dependent upon the 

applicable tier (Consult the long-term contract, Exhibit B, for the 

applicable rate. This exhibit is updated annually. If uncertain whether 

tiered charges apply, the tiered rate will be included in approval letter and 

accounted for when water is transferred). 

f. Is the transferred water being delivered to full cost lands? 

i. No. Full cost interest rates do not apply. 

ii. Yes. In addition to the costs determined above, the transferee is required 

to pay interest on all capital. That interest amount shall equal the 

transferee’s full cost rate less the payment requirements determined in 

steps a through e, above. These costs apply and are to be paid by the 

transferee the month after delivery. 

g. Apply current irrigation Restoration Fund charge. 

h. Is the water being diverted from the Friant-Kern Canal, Madera Canal, or 

Millerton Reservoir? 

i. No. Friant surcharge does not apply. 

ii. Yes. Friant surcharge applies. 

i. Apply the Trinity Public Utility District Assessment on delivered water as 

identified in the letter to CVP water users dated March 12, 2007.

Fewer Capital 

Services? 

Tiered Water 

Rates? 

Water on 

Full Cost Lands? 

Restoration? 

Friant 

Surcharge? 

Trinity PUD 

Assessment 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-2 Page 6 of 13 

Transferor: Irrigation, Renewed Contract 

Transfer Purpose: M&I 

Does the transferor have an M&I cost of service water rate? 

1. Yes. Start with the Transferor’s M&I Cost of Service Water Rate from M&I 

 Sch A-1 and do steps a through g below (See Exhibit C, Example 6). If No, go to 

number 2. 

a. Develop a worksheet for the proposed transfer and identify the transferor’s 

M&I cost of service rate. 

b. Does the transfer require additional CVP services? 

i. No. Do not include rate components for additional services. 

ii. Yes. Identify allocable costs per acre-foot components for additional 

services used, and include an additional allocable cost per acre-foot 

component for each identified additional facility used through the Special 

water ratebook, Schedule TR-1 (Capital) and M&I water ratebook, 

Schedule A-2A (Operation and Maintenance). Additional allocable costs 

per acre-foot components should reflect cost per acre-foot components of 

the transferee. 

(a) Do not include allocable costs per acre-foot components for the San 

Luis Drain capital cost or Kesterson clean-up costs as additional 

services.

(b) Include direct pumping capital as an additional component (This 

component will also be reflected in the transferor’s rate as it is a 

fixed cost to be recovered regardless of the transfer action).

c. Does the transfer require fewer CVP O&M services? 

i. No. 

(a) Do not deduct any components from the transferor’s rate. 

(b) Do not deduct San Luis Drain Kesterson cleanup costs. 

ii. Yes. Deduct appropriate O&M services. Supporting documentation is 

needed to document actual financial savings realized by the United States 

as a result of the transfer. 

(a) Deduct direct pumping O&M component of the transferor as 

identified on Schedule A-2A of the Irrigation water ratebook. 

d. Does the transfer require fewer CVP capital services? 

i. No. No adjustments are made as these are fixed costs. 

ii. Yes. No adjustments are made as these are fixed costs.

M&I Cost 

of Service 

Water Rate 

Additional 

Services? 

Fewer O&M 

Services? 

Fewer Capital 

Services? 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-2 Page 7 of 13 

e. Do tiered water rates apply to transferor’s water? (Tiered Water Rates are not 

applicable for Sacramento River Settlement Contractors) 

i. No. Do not add tiered water rates. 

ii. Yes. Add the appropriate M&I tiered water rate, dependent upon the 

applicable tier. (Consult the long-term contract, Exhibit B, for the 

applicable rate. This exhibit is updated annually.). If uncertain whether 

tiered charges apply, the tiered rate will be included in approval letter and 

accounted for when water is transferred. 

f. Apply current M&I Restoration Fund Charge. 

g. Is the water being diverted from the Friant-Kern Canal, Madera Canal, or 

Millerton Reservoir? 

i. No. Friant surcharge does not apply. 

ii. Yes. The Friant surcharge applies. 

h. Apply the Trinity Public Utility District Assessment on delivered water as 

identified in the letter to CVP water users dated March 12, 2007.

Tiered Water 

Rates? 

Restoration? 

Friant 

Surcharge? 

Trinity PUD 

Assessment 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-2 Page 8 of 13 

Does the transferor have an M&I cost of service water rate? 

2. No. Determine a temporary M&I water rate using the Special Water Ratebook 

that includes the same components as the transferor’s irrigation water. Do steps a 

through g below (See Exhibit C, Example 7). 

a. Develop a worksheet for the proposed transfer and identify the transferor’s 

M&I cost of service rate. 

b. Does the transfer require additional CVP services? 

i. No. Do not include allocable costs per acre-foot components for 

additional services. 

ii. Yes. Identify the allocable costs per acre-foot components for additional 

services used, and include allocable costs per acre-foot components for 

each identified additional facility used through the Special water ratebook, 

Schedule TR-1 (Capital) and M&I water ratebook, Schedule A-2A 

(Operation and Maintenance). Additional allocable costs per acre-foot 

components should reflect allocable costs per acre-foot components of the 

transferee. 

(a) Do not include allocable costs per acre-foot components for the San 

Luis Drain capital cost and Kesterson clean-up costs as additional 

services.

(b) Include direct pumping capital as an additional component (Direct 

pumping capital will also be reflected in the transferor’s rate, as they 

are fixed costs to be recovered regardless of the transfer action).

c. Does the transfer require fewer CVP O&M services? 

i. No. 

(a) Do not deduct any components from the transferor’s rate. 

(b) Do not deduct San Luis Drain Kesterson cleanup costs 

ii. Yes. Deduct appropriate O&M services. Supporting documentation is 

needed to document actual financial savings realized by the United States 

as a result of the transfer. 

(a) Deduct direct pumping O&M allocable costs per acre-foot 

component of the transferor as identified on Schedule A-2A of the 

Irrigation water ratebook. 

d. Does the transfer require fewer CVP capital services? 

i. No. No adjustments are made as these are fixed costs. 

ii. Yes. No adjustments are made as these are fixed costs. 

e. Do tiered water rates apply to transferor’s water? (Tiered water rates are not 

applicable for Sacramento River Settlement Contractors) 

i. No. Do not add tiered water rates.

Temporary 

Water Rate 

Additional 

Services? 

Fewer O&M 

Services? 

Fewer Capital 

Services? 

Tiered Water 

Rates? 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-2 Page 9 of 13 

ii. Yes. Add the appropriate tiered M&I water rate, dependent upon the 

applicable tier. (Refer to the Special water rates, Schedule TR-2 for the 

applicable rate. This Schedule is updated annually.) If uncertain whether 

tiered charges apply, the tiered rate will be included in approval letter and 

accounted for when water is transferred.

f. Apply current M&I Restoration Fund Charge. 

g. Is the water being diverted from the Friant-Kern Canal, Madera Canal, or 

Millerton Reservoir? 

i. No. Friant surcharge does not apply. 

ii. Yes. Friant surcharge applies. 

h. Apply the Trinity Public Utility District Assessment on delivered water as 

identified in the letter to CVP water users dated March 12, 2007.

Restoration? 

Friant 

Surcharge? 

Trinity PUD 

Assessment 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-3 Page 10 of 13 

Transferor: M&I, Renewed Contract 

Transfer Purpose: M&I 

Start with the transferor’s M&I cost of service water rate. 

a. Develop a worksheet for the proposed transfer and identify the transferor’s 

M&I cost of service rate (See Exhibit C, Example 8). 

b. Does the transfer require additional CVP services? 

i. No. Do not include allocable costs per acre-foot components for 

additional services. 

ii. Yes. Identify the allocable costs per acre-foot components for additional 

services used, and include allocable costs per acre-foot components for 

each identified additional facility used through the Special water ratebook, 

Schedule TR-1 (Capital) and M&I water ratebook Schedule A-2A 

(Operation and Maintenance). Additional costs per acre-foot components 

should reflect allocable costs per acre-foot components of the transferee. 

(a) Do not include allocable costs per acre-foot components for the San 

Luis Drain capital cost or Kesterson clean-up costs as incremental 

charges. 

(b) Include Direct Pumping capital as an additional component (Direct 

pumping capital will also be reflected in the transferor’s rate as they 

are fixed costs to be recovered regardless of the transfer action.). 

c. Does the transferor require fewer CVP O&M services? 

i. No. Do not deduct any components from the transferor’s rate. 

ii. Yes. Deduct appropriate O&M services. Supporting documentation is 

needed to document actual financial savings realized by the United States 

as a result of the transfer. 

 (a) Deduct direct pumping O&M allocable costs per acre-foot 

component of the transferor as identified on Schedule A-2A of the 

M&I water ratebook. 

d. Does the transfer require fewer CVP capital services? 

i. No. No adjustments are made as these are fixed costs. 

ii. Yes. No adjustments are made as these are fixed costs. 

e. Do tiered water rates apply to transferor’s water? 

i. No. Do not add tiered water rates. 

ii. Yes. Add the appropriate tiered M&I water rate, dependent upon the 

applicable tier (Consult the long term contract, Exhibit B, for the 

applicable rate. This exhibit is updated annually.). If uncertain whether 

M&I Cost 

of Service 

Water Rate 

Additional 

Services? 

Fewer O&M 

Services? 

Fewer Capital 

Services? 

Tiered Water 

Rates? 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-3 Page 11 of 13 

tiered charges apply, the tiered rate will be included in approval letter and 

accounted for when water is transferred. 

f. Apply current M&I Restoration Fund Charge. 

g. Is the water being diverted from the Friant-Kern Canal, Madera Canal, or 

Millerton Reservoir? 

i. No. Friant surcharge does not apply. 

ii. Yes. Friant surcharge applies. 

h. Apply the Trinity Public Utility District Assessment on delivered water as 

identified in the letter to CVP water users dated March 12, 2007.

Restoration? 

Friant 

Surcharge? 

Trinity PUD 

Assessment 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-4 Page 12 of 13 

Transferor: M&I, Renewed Contract 

Transfer Purpose: Irrigation Contractor

Start with the transferor’s M&I cost of service water rate. 

a. Develop a worksheet for the proposed transfer and identify the transferor’s 

M&I cost of service rate (See Exhibit C, Example 9). 

b. Does the transfer require additional CVP services? 

i. No. Do not include allocable costs per acre-foot components for 

additional services. 

ii. Yes. Identify allocable costs per acre-foot components for additional 

services used, and include an additional allocable costs per acre-foot 

component for each identified additional facility used through Irrigation 

water ratebook schedule A-2Bb (Capital) and A-2A (Operation and 

Maintenance). Additional allocable costs per acre-foot components 

should reflect allocable costs per acre-foot components of the transferee. 

(a) Do not include allocable costs per acre-foot components for the San 

Luis Drain capital cost or Kesterson clean-up costs as additional 

services. 

(b) Include Direct Pumping capital as an additional component (This 

components will also be reflected in the transferor’s rate, as they are 

fixed costs to be recovered regardless of the transfer action). 

c. Does the transfer require fewer CVP O&M services? 

i. No. Do not deduct any components from the transferor’s rate. 

(a) Do not deduct San Luis Drain Kesterson cleanup costs. 

ii. Yes. Deduct appropriate O&M services. Supporting documentation is 

needed to document actual financial savings realized by the United States 

as a result of the transfer. 

(a) Deduct direct pumping O&M allocable cost per acre-foot component 

of the transferor as identified on Schedule A-2A of the M&I water 

ratebook. 

d. Does the transfer require fewer CVP capital services? 

i. No. No adjustments are made as these are fixed costs. 

ii. Yes. No adjustments are made as these are fixed costs.

M&I Cost of 

Service Water Rate 

Additional 

Services? 

Fewer O&M 

Services? 

Fewer Capital 

Services? 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

A-4 Page 13 of 13 

e. Do tiered water rates apply to transferor’s water? 

i. No. Do not add tiered water rates. 

ii. Yes. Add the appropriate tiered M&I rate, dependent upon the applicable 

tier (Consult the long term contract, Exhibit B, for the applicable M&I 

rate. This exhibit is updated annually.). If uncertain whether tiered 

charges apply, the tiered rate will be included in approval letter and 

accounted for when water is transferred. 

f. Is the transferred water being delivered to Full Cost lands? 

i. No. Full Cost interest rates do not apply. 

ii. Yes. In addition to the costs determined above, the transferee is required 

to pay interest on all capital. That interest amount shall equal the 

transferee’s full cost rate less the payment requirements determined in 

steps a through e, above. These costs apply to and are to be paid by the 

transferee the month after delivery. 

g. Apply current Irrigation Restoration Fund Charge. 

h. Is the water being diverted from the Friant-Kern Canal, Madera Canal, or 

Millerton Reservoir? 

i. No. Friant surcharge does not apply. 

ii. Yes. Friant surcharge applies. 

i. Apply the Trinity Public Utility District Assessment on delivered water as 

identified in the letter to CVP water users dated March 12, 2007.

Tiered Water 

Rates? 

Water on 

Full Cost Lands? 

Restoration? 

Friant 

Surcharge? 

Trinity PUD 

Assessment 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

 

 Exhibit B 

Transferor is Not a Renewed Contractor*

(Includes Interim Renewal Contractors)

Water Use Irrigation Water Use M&I

Transferor Transferor

is Irrigation B-2 ** B-1 is M&I

 B-1 B-2 

Transferee Transferee

is Irrigation is M&I

Use the higer of

the transferor's or

Determine Water Rate transferee's

Contract Rate

Include if appropriate:

Other Consideration Full Cost

Friant Surcharge

Include Restoration Charge Restoration Fund

Charge

Final Irrigation Final M&I

Transfer Rate Transfer Rate

* This flow chart is a general description of the process.

See referenced write up for process detail.

** Use the higher of the transfeor's Irrigation or M&I (if available) contract rates.

If the transferor does not have an M&I rate, then substitute the M&I temporary

rate with the same components as transferor's irrigation water.
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

B-1 Page 2 of 5 

Transferor: Irrigation or M&I - Not a Long Term Contractor 

 (For Exchange Contractors, Use Exhibit A) 

Transfer Purpose: Irrigation 

Is the Transferor an irrigation or M&I Contractor? If irrigation, proceed to the following 

steps below (See Exhibit C, Example 10). If M&I, go to number 2. 

1. Transferor is an Irrigation contractor. 

a. Use the higher of the two irrigation contract rates. 

b. Is the transferee putting the water on Full Cost Lands? 

i. No. Full cost interest rates do not apply. 

ii. Yes. Transferee is subject to transferee’s full cost rate. (Irrigation 

Schedule A-3A). The transferee must pay the increment between 

transferee’s full cost rate and the rate identified in step 1.a. above. If the 

Full Cost Water rate is less than the water rate in step 1.a., there is no 

incremental charge. These costs apply to and are to be paid by the 

transferee the month after delivery. 

c. Apply current Irrigation Restoration Fund Charge. 

d. Is the water being diverted from the Friant-Kern Canal, Madera Canal, or 

Millerton Reservoir? 

i. No. Friant surcharge does not apply. 

ii. Yes. Friant surcharge applies. 

e. Apply the Trinity Public Utility District Assessment on delivered water as 

identified in the letter to CVP water users dated March 12, 2007. 

2. Transferor is an M&I contractor (See Exhibit C, Example 11). 

a. Use the higher of the transferor’s M&I rate or the transferee’s irrigation rate. 

b. Is the transferee putting the water on Full Cost Lands? 

i. No. Full cost interest rates do not apply. 

ii. Yes. Transferee is subject to transferee’s full cost rate. (Irrigation 

Schedule A-3A). The transferee must pay the increment between 

transferee’s full cost rate and the rate identified in step 2a. above. If the 

Full Cost Water rate is less than the water rate in step 2a., there is no 

incremental charge. These costs apply to and are to be paid by the 

transferee the month after delivery. 

Water on 

Full Cost Lands? 

Restoration? 

Friant 

Surcharge? 

Trinity PUD 

Assessment 

Water on 

Full Cost Lands? 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

B-1 Page 3 of 5 

c. Apply current Irrigation Restoration Fund Charge. 

d. Is the water being diverted from the Friant-Kern Canal, Madera Canal, or 

Millerton Reservoir? 

i. No. Friant surcharge does not apply. 

ii. Yes. Friant surcharge applies. 

h. Apply the Trinity Public Utility District Assessment on delivered water as 

identified in the letter to CVP water users dated March 12, 2007. 

 

Restoration? 

Friant 

Surcharge? 

Trinity PUD 

Assessment 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

B-2 Page 4 of 5 

Transferor: Irrigation or M&I - Not a Long Term Contractor 

 (For Exchange Contractors, Use Exhibit A) 

Transfer Purpose: M&I 

Is the Transferor an irrigation or M&I Contractor? If irrigation, proceed to the following 

steps below (See Exhibit C, Example 12). If M&I, go to number 2. 

1. Transferor is an irrigation contractor. 

a. Does the transferor have an M&I Rate? 

i. Yes. Choose the higher of the transferor’s irrigation or M&I contract 

rates. Compare this rate to the transferee’s M&I contract rate and use the 

higher rate.

ii. No. Choose the higher of the transferor’s irrigation contract rate or 

temporary M&I rate (Temporary water ratebook, schedule T-1). Compare 

this rate to the transferee’s M&I contract rate and use the higher rate.

b. Apply current M&I Restoration Fund charge. 

c. Is the water being diverted from the Friant-Kern Canal, Madera Canal, or 

Millerton Reservoir? 

i. No. Friant surcharge does not apply. 

ii. Yes. Friant surcharge applies. 

d. Apply the Trinity Public Utility District Assessment on delivered water as 

identified in the letter to CVP water users dated March 12, 2007. 

2. Transferor is an M&I contractor (See Exhibit C, Example 13). 

a. Does the transferee have a calculated M&I Rate? 

i. Yes. Use the higher of the transferor’s and transferee’s M&I rates.

ii. No. Choose the higher of the transferor’s M&I or temporary M&I 

contract rates, if the contractor does not have a calculated M&I rate. 

Compare this rate to the transferee’s M&I or temporary M&I contract rate 

and use the higher rate. (Temporary water ratebook, schedule T-1). 

b. Apply current M&I Restoration Fund Charge.

Restoration? 

Friant 

Surcharge? 

Trinity PUD 

Assessment

Restoration? 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

B-2 Page 5 of 5 

c. Is the water being diverted from the Friant-Kern Canal, Madera Canal, or 

Millerton Reservoir? 

i. No. Friant surcharge does not apply. 

ii. Yes. Friant surcharge applies 

d. Apply the Trinity Public Utility District Assessment on delivered water as 

identified in the letter to CVP water users dated March 12, 2007. 

Friant 

Surcharge? 

Trinity PUD 

Assessment 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 1 of 15 

EXHIBIT C * 

EXAMPLES 1 THROUGH 9 

TRANSFEROR HAS A RENEWED CONTRACT 

Example 1: Transferor is an Irrigation CVP Contractor with a Renewed Contract, transferring 

 water to an Irrigation CVP Contractor. Both the Transferor and Transferee have 

 Ability-to-Pay Relief Status. 

Example 2: Transferor is an Irrigation CVP Settlement Contractor with a Renewed Contract, 

 transferring water to an Irrigation CVP Settlement Contractor. Both the 

 Transferor and Transferee are in Ability-to-Pay Relief Status. 

Examples 3: Transferor is an Irrigation CVP Contractor with a Renewed Contract, transferring 

 water to an Irrigation CVP Contractor. One or Both the Transferor and 

 Transferee do not have Ability-to-Pay Relief Status. 

Examples 4: Same CVP water users as in example 3; however, the transferee is the transferor 

 in this example. 

Examples 5: Transferor is an Irrigation CVP Settlement Contractor with a Renewed 

 Contract, transferring water to an Irrigation CVP Contractor. One or Both 

 the Transferor and Transferee do not have Ability-to-Pay Relief Status. 

Example 6: Transferor is an Irrigation CVP Contractor with a Renewed Contract, 

 transferring water to an M&I CVP Contractor. Transferor has an M&I Water 

 Rate. 

Example 7: Transferor is an Irrigation CVP Contractor with a Renewed Contract, 

 transferring water to an M&I CVP Contractor. Transferor does not have 

 an M&I Water Rate. 

Example 8: Transferor is an M&I CVP Contractor with a Renewed Contract, transferring 

 water to an M&I CVP Contractor. 

Example 9: Transferor is an M&I CVP Contractor with a Renewed Contract, transferring 

 water to an Irrigation CVP Contractor. 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 2 of 15 

EXAMPLES 10 THROUGH 13 

TRANSFEROR DOES NOT HAVE A RENEWED CONTRACT 

Example 10: Transferor is an Irrigation CVP Contractor without a Renewed Contract, 

 transferring water to an Irrigation CVP Contractor. 

Example 11: Transferor is an M&I CVP Contractor without a Renewed Contract, transferring 

 water to an Irrigation CVP Contractor. 

Example 12: Transferor is an Irrigation CVP Contractor without a Renewed Contract, 

 transferring water to an M&I CVP Contractor. 

Example 13: Transferor is an M&I CVP Contractor without a Renewed Contract, transferring 

 water to an M&I CVP Contractor. 

* Examples are based on the 2006 CVP water rates. 
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 3 of 15 

Example 1: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit A, Section 1

Transferor: Irrigation, Renewed Contract Water Contractor: Colusa County WD - TCC

Transfer Purpose: Irrigation Water Contractor: 4-M WD - TCC

Rates

Identify the Transferor's Cost of Service Rate 40.89

Do both the transferor and transferee have ability to pay (ATPR) relief?

Yes. Do steps a through h of A-1(1).

Steps a through d

Reduce Rate for Transferor's Direct Pumping O&M?

-4.12

Add Additional Services to Transferee that Apply:

Storage Capital

San Felipe Unit?

All Others?

Conveyance Pumping Capital?

Corning PP

Dos Amigos PP

O'Neill PGP

Tracy PP

 FK/Madera Exchange

 All Other Contractors

Conveyance Capital?

Direct Ppg Capital?

Ability to Pay Capital Relief (Cost to Power) (22.23)

Storage O&M

Direct Pumping O&M?

Effective Transfer Rate 14.54

Steps e through h

e. Identify Transferor's Tiered Water Rates (Begin with the Transferor's Full Cost 202(3) Rate)

Full Cost==> 55.81 *

Tier 2: Applicable to > 81 <= 90% of transferor's entitlement 18.58 

Tier 3: Applicable to > 90% of transferor's entitlement 37.15 

f. Identify Applicable Full Cost (FC) Interest Water Rate for Transferee.

Full Cost Additional Interest from

Water Rate Eff. Rate Tier 2 Tier 3

202(3) Interest Rate? Total FC Rate==> 35.06 <==Total FC Rate 1.95 20.52 - 

205(a)(3) Interest Rate? Total FC Rate==> 42.25 <==Total FC Rate 9.13 27.71 - 

g. Irrigation Restoration Fund Charge 8.24

Ability to Pay Restoration Fund Charge Relief (Cost to Power) Determination in Progress (8.24)

Applicable Restoration Fund Charge for Transfer Water -

h. Is the Water being diverted from the Friant-Kern Canal or Millerton Reservoir?

If Yes, Friant Surcharge Applies.

i. Identify Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook

* Excludes Distribution System Interest Identified on Irrigation water ratebook, Schedule A-3A
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 4 of 15 

Example 2: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit A, Section 1

Transferor: Irrigation, Renewed Contract Water Contractor: Richter, H Jr/et al

Transfer Purpose: Irrigation Water Contractor: MCM Properties

Rates

Identify the Transferor's Cost of Service Rate 18.83

Do both the transferor and transferee have ability to pay (ATPR) relief?

Yes. Do steps a through h of A-1(1).

Steps a through d

Reduce Rate for Transferor's Direct Pumping O&M?

Add Additional Services to Transferee that Apply:

Storage Capital

San Felipe Unit?

All Others?

Conveyance Pumping Capital?

Corning PP

Dos Amigos PP

O'Neill PGP

Tracy PP

 FK/Madera Exchange

 All Other Contractors

Conveyance Capital?

Direct Ppg Capital?

Ability to Pay (ATP) Capital Relief (Cost to Power) 1/ -

Storage O&M

Direct Pumping O&M?

Effective Transfer Rate 18.83

Steps e through h

e. Identify Transferor's Tiered Water Rates (Begin with the Transferor's Full Cost 202(3) Rate)

Full Cost==> N/A <==Full Cost

Tier 2: Applicable to > 81 <= 90% of transferor's entitlement N/A

Tier 3: Applicable to > 90% of transferor's entitlement N/A

f. Identify Applicable Full Cost (FC) Interest Water Rate for Transferee.

Full Cost Additional Interest from

Water Rate Eff. Rate Tier 2 Tier 3

202(3) Interest Rate? Total FC Rate==> 29.17 <==Total FC Rate N/A N/A 10.34

205(a)(3) Interest Rate? Total FC Rate==> 31.72 <==Total FC Rate N/A N/A 12.89

g. Irrigation Restoration Fund Charge 8.24

Ability to Pay Restoration Fund Charge Relief (Cost to Power) 1/ (3.24)

Applicable Restoration Fund Charge for Transfer Water 5.00

h. Is the Water being diverted from the Friant-Kern Canal or Millerton Reservoir?

If Yes, Friant Surcharge Applies.

i. Identify Trinity PUD Assessment 0.11

1/ ATP Relief Determination (For this example, used the 2007 Water Rates, Schedule A-1,

Footnotes 7 and 8 to represent ATP):

Richter, H Jr/et al MCM Properties

ATP Capital per Acre-foot 4.63 4.34 

ATP Restoration Charge 5.00 - 

 4.34 9.63 

ATP Capital Relief per acre-foot is $0.00 ($9.63 is sufficient to cover the allocable capital cost per acre-foot) 

ATP Restoration Charge Relief is $3.24 (($9.63 (ATP) -$4.63 (Capital ATP) - $8.24 (Restoration Charge))

Check Box after Verification of Above Rates in Ratebook
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 5 of 15 

Example 3: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit A, Section 1

Transferor: Irrigation, Renewed Contract Water Contractor: Del Puerto WD - DMC

Transfer Purpose: Irrigation Water Contractor: Westlands WD - SLC

Rates

Identify the Transferor's Cost of Service Rate 24.64

Do both the transferor and transferee have ability to pay (ATPR) relief?

No. Do steps a through h of A-1(2).

Steps a through d

Reduce Rate for Transferor's Direct Pumping O&M?

Add Additional Services to Transferee that Apply:

Storage Capital

San Felipe Unit?

All Others?

Conveyance Pumping Capital?

Corning PP

Dos Amigos PP 0.65

O'Neill PGP 0.40

Tracy PP

 FK/Madera Exchange

 All Other Contractors

Conveyance Capital?

Direct Ppg Capital? 1.43

Storage O&M

Direct Pumping O&M? 2.54

Effective Transfer Rate 29.65

Steps e through h

e. Identify Transferor's Tiered Water Rates (Begin with the Transferor's Full Cost 202(3) Rate)

Full Cost==> 34.94 <==Full Cost

Tier 2: Applicable to > 81 <= 90% of transferor's entitlement 5.15 

Tier 3: Applicable to > 90% of transferor's entitlement 10.30 

f. Identify Applicable Full Cost (FC) Interest Water Rate for Transferee.

Full Cost Additional Interest from

Water Rate Eff. Rate Tier 2 Tier 3

202(3) Interest Rate? Total FC Rate==> 56.24 <==Total FC Rate 21.44 26.59 16.29 

205(a)(3) Interest Rate? Total FC Rate==> 71.24 <==Total FC Rate 36.43 41.59 31.28 

g. Irrigation Restoration Fund Charge 8.24

h. Is the Water being diverted from the Friant-Kern Canal or Millerton Reservoir?

If Yes, Friant Surcharge Applies.

i. Identify Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 6 of 15 

Example 4: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit A, Section 1

Transferor: Irrigation, Renewed Contract Water Contractor: Colusa County WD - TCC

Transfer Purpose: Irrigation Water Contractor: Del Puerto WD - DMC

Rates

Identify the Transferor's Cost of Service Rate 40.89

Do both the transferor and transferee have ability to pay (ATPR) relief?

No. Do steps a through h of A-1(2).

Steps a through d

Reduce Rate for Transferor's Direct Pumping O&M? (4.12) 

Add Additional Services to Transferee that Apply:

Storage Capital

San Felipe Unit?

All Others?

Conveyance Pumping Capital?

Corning PP

Dos Amigos PP

O'Neill PGP

Tracy PP

 FK/Madera Exchange

 All Other Contractors 0.84 

Conveyance Capital?

Direct Ppg Capital?

Storage O&M

Direct Pumping O&M?

Effective Transfer Rate 37.61

Steps e through h

e. Identify Transferor's Tiered Water Rates (Begin with the Transferor's Full Cost 202(3) Rate)

Full Cost==> 55.81 <==Full Cost

Tier 2: Applicable to > 81 <= 90% of transferor's entitlement 7.46 

Tier 3: Applicable to > 90% of transferor's entitlement 14.92 

f. Identify Applicable Full Cost (FC) Interest Water Rate for Transferee.

Full Cost Additional Interest from

Water Rate Eff. Rate Tier 2 Tier 3

202(3) Interest Rate? Total FC Rate==> 34.94 <==Total FC Rate - - - 

205(a)(3) Interest Rate? Total FC Rate==> 42.00 <==Total FC Rate - 4.39 - 

g. Irrigation Restoration Fund Charge 8.24

h. Is the Water being diverted from the Friant-Kern Canal or Millerton Reservoir?

If Yes, Friant Surcharge Applies.

i. Identify Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 7 of 15 

Example 5: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit A, Section 1

Transferor: Irrigation, Renewed Contract Water Contractor: Glenn Colusa ID - Sac River

Transfer Purpose: Irrigation Water Contractor: Colusa County WD - TCC

Rates

Identify the Transferor's Cost of Service Rate 18.80

Do both the transferor and transferee have ability to pay (ATPR) relief?

No. Do steps a through h of A-1(2).

Steps a through d

Reduce Rate for Transferor's Direct Pumping O&M?

Add Additional Services to Transferee that Apply:

Storage Capital

San Felipe Unit?

All Others?

Conveyance Pumping Capital?

Corning PP

Dos Amigos PP

O'Neill PGP

Tracy PP

 FK/Madera Exchange

 All Other Contractors

Conveyance Capital? 2.95

Direct Ppg Capital? 6.27

Storage O&M

Direct Pumping O&M? 4.12

Effective Transfer Rate 32.14

Steps e through h

e. Identify Transferor's Tiered Water Rates (Begin with the Transferor's Full Cost 202(3) Rate)

Full Cost==> N/A <==Full Cost

Tier 2: Applicable to > 81 <= 90% of transferor's entitlement N/A

Tier 3: Applicable to > 90% of transferor's entitlement N/A

f. Identify Applicable Full Cost (FC) Interest Water Rate for Transferee.

Full Cost Additional Interest from

Water Rate Eff. Rate Tier 2 Tier 3

202(3) Interest Rate? Total FC Rate==> 76.84 <==Total FC Rate 44.70 N/A N/A

205(a)(3) Interest Rate? Total FC Rate==> 102.13 <==Total FC Rate 69.99 N/A N/A

g. Irrigation Restoration Fund Charge 8.24

h. Is the Water being diverted from the Friant-Kern Canal or Millerton Reservoir?

If Yes, Friant Surcharge Applies.

i. Identify Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 8 of 15 

Example 6: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit A, Section 2

Transferor: Irrigation, Renewed Contract Water Contractor: Del Puerto WD

Transfer Purpose: M&I Water Contractor: Westlands WD

Rates

Transferor has an M&I Cost of Service Rate so start with this rate 19.11 

Do Steps a through g of A-2(1).

Steps a through d

What additional Services does the transfer require?

O'Neill PGP Capital (from Schedule TR-1) 0.84 

Dos Amigos PP Capital (from Schedule TR-1) 1.38 

Direct Pumping Capital (from Schedule TR-1) 5.76 

Direct Pumping O&M (M&I Schedule A-2a) 2.31 

Effective Transfer Rate 29.40

Steps e through g

e. Tiered Pricing Interest (M&I Schedule FC-1)

Full Cost 24.11

Tier 2: Applicable to > 81 <= 90% of transferor's entitlement 2.50

Tier 3: Applicable to > 90% of transferor's entitlement 5.00

f. M&I Restoration Fund Charge 16.49

g. Is the Water being diverted from the Friant-Kern Canal or Millerton Reservoir?

If Yes, Friant Surcharge Applies.

h. Identify Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 9 of 15 

Example 7: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit A, Section 2

Transferor: Irrigation, Renewed Contract Water Contractor: Patterson WD

Transfer Purpose: M&I Water Contractor: Westlands WD

Rates

Transferor does not have an M&I Cost of Service Rate, Use a Temporary Water Rate 25.44 

Do Steps a through g of A-2(2).

Steps a through d

What additional Services does the transfer require?

O'Neill PGP Capital (from Schedule TR-1) 0.84 

Dos Amigos PP Capital (from Schedule TR-1) 1.38 

Direct Pumping Capital (from Schedule TR-1) 5.76 

Direct Pumping O&M (M&I Schedule A-2a) 2.31 

Effective Transfer Rate 35.73

Steps e through g

e. Tiered Pricing Interest * Full Cost 35.03

Tier 2: Applicable to > 81 <= 90% of transferor's entitlement 4.80

Tier 3: Applicable to > 90% of transferor's entitlement 9.59

f. M&I Restoration Fund Charge 16.49

g. Is the Water being diverted from the Friant-Kern Canal or Millerton Reservoir?

If Yes, Friant Surcharge Applies.

h. Identify Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook

* Used Irrigation Full Cost Rate as the M&I Full Cost Rates were not available for this example.
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 10 of 15 

Example 8: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit A, Section 3

Transferor: M&I, Renewed Contract Water Contractor: Del Puerto WD

Transfer Purpose: M&I Water Contractor: Westlands WD

Rates

Use the Transferor's M&I Cost of Service Water Rate 19.11 

Do Steps a through g of A-3.

Steps a through d

What additional Services does the transfer require?

O'Neill PGP Capital (from Schedule TR-1) 0.84 

Dos Amigos PP Capital (from Schedule TR-1) 1.38 

Direct Pumping Capital (from Schedule TR-1) 5.76 

Direct Pumping O&M (M&I Schedule A-2a) 2.31 

Effective Transfer Rate 29.40

Steps e through g

e. Tiered Pricing Interest (M&I, Schedule FC-1) Full Cost 24.11

Tier 2: Applicable to > 81 <= 90% of transferor's entitlement 2.50

Tier 3: Applicable to > 90% of transferor's entitlement 5.00

f. M&I Restoration Fund Charge 16.49

g. Is the Water being diverted from the Friant-Kern Canal or Millerton Reservoir?

If Yes, Friant Surcharge Applies.

h. Identify Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 11 of 15 

Example 9: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit A, Section 4

Transferor: M&I, Renewed Contract Water Contractor: Del Puerto WD

Transfer Purpose: Irrigation Water Contractor: Westlands WD - SLC

Rates

Use the Transferor's M&I Cost of Service Water Rate 19.11 

Do Steps a through h of A-4.

Steps a through d

What additional Services does the transfer require?

O'Neill PGP Capital (from Schedule TR-1) 0.40 

Dos Amigos PP Capital (from Schedule TR-1) 0.65 

Direct Pumping Capital (from Schedule TR-1) 1.43 

Direct Pumping O&M (M&I Schedule A-2a) 2.54 

Effective Transfer Rate 24.13

Steps e through h

e. Tiered Pricing Interest (M&I, Schedule FC-1) Full Cost 34.94

Tier 2: Applicable to > 81 <= 90% of transferor's entitlement 7.92

Tier 3: Applicable to > 90% of transferor's entitlement 15.83

f. Identify Applicable Full Cost (FC) Interest Water Rate for Transferee.

Full Cost Additional Interest from

Water Rate Eff. Rate Tier 2 Tier 3

202(3) Interest Rate? Total FC Rate==> 56.24 <==Total FC Rate 24.19 32.11 16.28 

205(a)(3) Interest Rate? Total FC Rate==> 71.24 <==Total FC Rate 39.19 47.11 31.28 

g. Irrigation Restoration Fund Charge 8.24

h. Is the Water being diverted from the Friant-Kern Canal or Millerton Reservoir?

If Yes, Friant Surcharge Applies.

i. Identify Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 12 of 15 

Example 10: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit B, Section 1

Transferor: Irrigation, Not a Renewed Contract Water Contractor: San Luis WD- SLC

Transfer Purpose: Irrigation Water Contractor: 4-M WD - TCC

Rates

Contract Rates: San Luis WD - SLC 8.00 

4-M WD - TCC 29.49

Use the higher of the Contract Rates 29.49

If the Water is put on Full Cost Lands, Transferee is subject to transferee's full cost incremental rate

Transferee's Full Cost

Water Rate

35.06

Incremental Full Cost Rate 5.57

Restoration Fund Charge 8.24

Friant Surcharge N/A

Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 13 of 15 

Example 11: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit B, Section 1

Transferor: M&I, Not a Renewed Contract Water Contractor: San Luis WD - SLC

Transferee: Irrigation Water Contractor: Wells, J

Rates

Contract Rates: San Luis WD - SLC 23.47 

Wells, J 21.56 

Use the higher of the Contract Rates 23.47

If the Water is put on Full Cost Lands, Transferee is subject to transferee's full cost incremental rate

Transferee's Full Cost

Water Rate

28.64

Incremental Full Cost Rate 5.17

Restoration Fund Charge 8.24

Friant Surcharge N/A

Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 14 of 15 

Example 12: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibit B, Section 2

Transferor: Irrigation, Not a Renewed Contract Water Contractor: San Luis WD - SLC

Transfer Purpose: M&I Water Contractor: Shasta CSD

Rates

Contract Rates San Luis WD - SLC M&I 23.47 Irrigation 8.00 

Shasta CSD 16.73 

Use the higher of the Contract Rates 23.47

Restoration Fund Charge 16.49

Friant Surcharge N/A

Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 15 of 15 

Example 13: Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Ehibit B, Section 2

Transferor: M&I, Not a Renewed Contract Water Contractor: San Luis WD - SLC

Transfer Purpose: M&I Water Contractor: Shasta CSD

Rates

Contract Rates: San Luis WD - SLC 23.47 

Shasta CSD 16.73 

Use the higher of the Contract Rates 23.47

Restoration Fund Charge 16.49

Friant Surcharge N/A

Trinity PUD Assessment 0.11

Check Box after Verification of Above Rates in Ratebook
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 1 of 15 

Central Valley Project

Transfer Form

Transferor, Renewed Contract

Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibits A and C.

Transferor: Water Contractor:

Transfer Purpose: Water Contractor:

Rates

Identify the Transferor's Cost of Service Rate

Reduce Rate for Transferor's Direct Pumping O&M

Add Additional Services to Transferee that Apply

Storage Capital

San Felipe Unit

All Others

Conveyance Pumping Capital

Corning PP

Dos Amigos PP

O'Neill PGP

Tracy PP

 FK/Madera Exchange

 All Other Contractors

Conveyance Capital

Direct Ppg Capital

Ability to Pay Capital Relief (Cost to Power)

Storage O&M

Direct Pumping O&M

Effective Transfer Rate

Identify Transferor's Tiered Water Rates (Begin with the Transferor's Full Cost 202(3) Rate)

Full Cost==> *

Tier 2: Applicable to > 81 <= 90% of transferor's entitlement

Tier 3: Applicable to > 90% of transferor's entitlement

Identify Applicable Full Cost (FC) Interest Water Rate for Transferee.

Full Cost Additional Interest from

Water Rate Eff. Rate Tier 2 Tier 3

202(3) Interest Rate? Total FC Rate==> <==Total FC Rate

205(a)(3) Interest Rate? Total FC Rate==> <==Total FC Rate

Irrigation Restoration Fund Charge

Restoration Fund Charge

Ability to Pay Restoration Fund Charge Relief (Cost to Power)

Applicable Restoration Fund Charge for Transfer Water

Friant Surcharge: Water being diverted from the Friant-Kern Canal or Millerton Reservoir

Trinity PUD Assessment

Check Box after Verification of Above Rates in Ratebook

* If Applicable, Distribution System interest identified on Irrigation water ratebook, Schedule A-3A is excluded.
Susan Hoffman MP-BPG-05 

Acting Financial Manager May 15, 2008 

Exhibit C Page 2 of 15 

Central Valley Project

Transfer Form

Transferor, Not a Renewed Contract

Use the Business Practice Guidelines for Accounting for CVP Water Transfers, Exhibits B and C.

Transferor: Water Contractor:

Transfer Purpose: Water Contractor:

Rates

Irrigation M&I

Contract Rates: Transferor

Transferee

Use the higher of the Contract Rates

If the Water is put on Full Cost Lands, Transferee is subject to transferee's full cost incremental rate

Transferee's Full Cost

Water Rate

Incremental Full Cost Rate

Restoration Fund Charge

Friant Surcharge

Trinity PUD Assessment

Check Box after Verification of Above Rates in Ratebook