Bureau of Reclamation, Mid-Pacific Region 

Business Practice Guidelines for 

Developing Rates and Applying Revenue for 

Central Valley Project (CVP) Water Transfers 

1.0 Purpose 

The purpose of these guidelines is to identify the process for determining rates and charges 

and applying revenue for CVP water transfers. 

2.0 Scope

These guidelines apply to CVP contractors (see Appendix) under water service, repayment, 

water right settlement, the exchange contracts and also provide guidance to the area offices, 

Resource Management Division and the Financial Management Division. The guidelines 

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

2008. The guidelines were first issued May 15, 2008. 

3.0 Authorities and References

a. Central Valley Project Improvement Act (CVPIA), Public Law 102-575, Title XXXIV, 

1992 

b. Central Valley Project Water Rates, 

http://www.usbr.gov/mp/cvpwaterrates/ratebooks/index.html

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

CVP Contractor, Letter Dated April 28, 2005 

d. Interim Guidelines for Implementation of the Water Transfer Provisions of the Central 

Valley Project Improvement Act, Rev. February 19, 1993 

e. Irrigation Ratesetting Document, 1988 

f. New Process for Trinity Public Utilities District Assessment, 

Letter dated March 12, 2007 

g. Omnibus Public Lands Management Act of 2009, Water Settlements, 

Public Law 111-11, Title X, March 30, 2009 

h. Proposed Interim Ratesetting Policy, Municipal and Industrial Water, December 1993 

i. Reclamation Reform Act of 1982, October 12, 1982 

j. Trinity Public Utilities District Assessment, Public Law 106-377, Appendix B, 

Section 203, October 22, 2000 

k. Voluntary Transfers of Project Water, Reclamation Manual, Policy, WTR P02, 

January 10, 2001 

4.0 Expiration 

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

Reclamation-wide policies, directives, and standards. These 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formally revised or rescinded. 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, 916-978-5352 

Ratesetting Services Manager, 916-978-5391 

Water Contracts and Policy, 916-978-5250 

2800 Cottage Way, Sacramento, CA 95825 

Original: May 2008; Revised November 2012 

 
 

6.0 Definitions 

a. Ability-to-Pay Relief: Irrigators may be relieved from construction costs repayment, as 

authorized by the Reclamation Project Act of August 4, 1939, amended and 

supplemented by other statutes, and, section 3407 (d)(2)(A) of the CVPIA, for the 

payment of mitigation and Restoration charges for irrigation water. 

b. Advance Payment: Contractors’ advance payment to the United States for applicable 

water rates, charges, and the tiered pricing component in accordance with the terms of 

the Contract and in accordance with: i. the Secretaries Ratesetting Policies; and, 

ii. Applicable Reclamation Laws, Regulations or Policies. 

c. Banked Water: Central Valley Project water approved to be placed in a groundwater 

bank for use at a later date.

d. Conveyance Pumping Component: This component includes the construction costs of 

the main Project pumping facilities used to move irrigation and M&I water through the 

Project, including Corning, Dos Amigos, Jones Pumping Plants, and O’Neill PumpingGenerating Plant. 

e. Cost of Service Water Rates: Payment for Project Water determined annually by the 

Contracting Officer in accordance with the applicable water ratesetting policies for the 

Project. 

f. Direct Pumping Component: The direct pumping O&M and capital cost components 

applicable when direct pumping facilities are used for delivery of water. 

g. Exchange Contracts: For purposes of these transfer guidelines, exchange contracts are 

for contractors south of the Delta that receive their CVP water at zero cost of service 

via exchange, substitution, settlement, or replacement (i.e., San Joaquin River 

Exchange Contractors and Mendota Pool Settlement Contractors). 

h. Full Cost Lands: Criteria identified in the RRA where full cost rates are required for 

land receiving irrigation water above specific acreage limits. 

i. Full Cost Rate: An annual rate as determined by the Secretary that shall amortize the 

expenditures for construction properly allocable to irrigation facilities in service, 

including all operation and maintenance deficits funded, less payments, over such 

periods as may be required under Federal Reclamation law or applicable contract 

provisions, with interest on both accruing from the date of enactment of the RRA on 

costs outstanding at that date, or from the date incurred in the case of costs arising 

subsequent to the date of enactment of the RRA. 

j. Friant Division Repayment Contracts: The contracts executed by Friant Division 

contractors under the provisions of the San Joaquin River Restoration Settlement Act. 

k. Renewal Contractor: Water service, Sacramento River Settlement, or exchange 

contractors1

 whose contract has been renewed after passage of the CVPIA. For 

purposes of setting transfer rates, “renewal contractors” include interim renewal 

Contracts. 

l. Tiered Pricing Component: The amount to be paid for each acre-foot of water 

delivered as described in transferor’s contract and in accordance with section 3405(d) 

of the CVPIA. 

 

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

Exchange Contractors, dated June 3, 2006, the transferee pays on behalf of the San Joaquin 

River Exchange and Mendota Pool Settlement Contractors (See Section A-1, Example 2 for 

rate development).

Original: May 2008; Revised November 2012 2 
 

7.0 Roles and Responsibilities 

a. Resources Management Division. The Resources Management Division is responsible 

for the following activities: 

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

2. Notifying area offices and Financial Management Division of approved transfers 

and providing documentation.

3. Performing quality assurance reviews of area office transfer approvals. 

b. Area Offices. These offices are responsible for the following activities: 

1. Compiling the 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. 

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

applicable to the transfer. 

5. Promptly informing the Resources Management Division and Financial 

Management Division of transfers and providing related documents. 

c. Financial Management Division: The Financial Management Division is responsible 

for the following activites: 

1. Developing water transfer rates for additional services where the rates are not 

 available in the irrigation and M&I water ratebooks. 

2. Accounting for and applying water transfer revenues. 

3. Performing quality assurance reviews of water transfer rates. 

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

5. Recording payments to the appropriate account and crediting revenue pursuant to 

 this guideline. 

d. Water Contractors. The water contractors are responsible for the following activities: 

1. Requesting approval or acknowledgment as appropriate for transferring water 

 according to contract terms and conditions. 

 2. Complying with terms and conditions in the approval letter. 

8.0 Principles 

These guidelines are intended to provide the area offices, Resource Management Division 

and the Financial Management Division with the guidance necessary to consistently, 

promptly, and accurately account for CVP water transfers under water service, repayment, 

Settlement, and exchange contracts.

9.0 Process for Determining Rates and Charges and Responsibility for Payment 

Water rates, charges, and assessments 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. 

Payments of all water rates, charges, and assessments associated with transferred water are 

the responsibility of the transferor.2

 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 operating non-Federal entity. 

 

2

 Transferee is to pay for any additional interest after water is delivered to full cost lands. 

Original: May 2008; Revised November 2012 3 
 

9.1 Determining Water Rates and Charges for Renewal Contractors

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

include the cost of additional services provided and/or reduced for direct pumping O&M 

services not used3. 

a. Determining additional services and certain additional capital component costs. 

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 and capital component costs for the 

following services:

1. Storage 

2. Direct pumping 

3. Conveyance (Folsom-South Canal only), and Conveyance pumping (South of Delta 

transfers related to Dos Amigos pumping for Cross Valley Canal contractors and 

potentially Jones pumping) 

4. Conveyance pumping

Capital component costs do not include San Luis Drain capital component.4 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 costs only5. 

c. Other factors to consider for water rates and charges for renewal contractors are: 

1. The applicability of the contractors ability-to-pay limitation or relief 

2. The applicability to a Friant 9(d) contract conversion (see section 9.3) 

3. The applicability of tiered pricing (per the CVPIA Section 3405(d)1, 2 and 3) 

4. The applicability of water being transferred to lands subject to the full cost rate 

5. The applicability of Friant surcharge (per the CVPIA Section 3406(c)(1) 

6. The applicability of Mitigation and Restoration charge 

7. The applicability of an M&I surcharge 

8. The applicability of a Water Transfer Charge 

9. The applicability of Trinity PUD assessment 

9.2 Determining Transfer Rates, Charges, and Assessments 

Since several factors are considered in determining transfer rates, charges, and assessments, 

flow charts and examples are presented in Sections A through C of these guidelines to 

illustrate this process. Each flowchart is followed by technical instructions for computing the 

transfer rate (Examples are included with the applicable sections). A summary of each 

section and transfer type is provided in the following paragraph. See Section 9.3 for transfers 

by Friant Division CVP contractors that have executed repayment contracts. 

 

3

 For Rescheduled water transferred, all water rates (including applicable additional services and full cost water 

rates) are based on the rates for the water year that the water was rescheduled. 

4

 This is a revision from the April 28, 2005 policy on water rates for water transfers. 5

 The non-Federal operating entity is responsible for conveyance pumping O&M costs. 

Original: May 2008; Revised November 2012 4 
 

Transferor is a CVP renewal contractor / Transferee is a CVP contractor 

Section Transferor Transferee 

A-1 Irrigation Irrigation 

A-2 Irrigation M&I 

A-3 M&I M&I 

A-4 M&I Irrigation 

Transferor is not a CVP renewal contractor / Transferee is a CVP contractor 

Section Transferor Transferee 

B-1 Irrigation or M&I Irrigation 

B-2 Irrigation or M&I M&I 

Transferor is a CVP contractor / Transferee is not a CVP contractor 

Section Transferor Transferee 

C-1 Irrigation or M&I Irrigation or M&I 

Section D contains the water transfer forms.

9.3 Friant Division Contractors Converted to 9(d) Contracts 

Friant Division contractors who have entered into repayment contracts under section 9(d) 

of the 1939 Act and transfer water have special requirements for full cost pricing. If the 

transfer requires calculation of full cost pricing for Reclamation Reform Act, tiered pricing, 

or delivering water to water users that have not entered into CVP contracts, the following 

cost recovery requirements apply: 

a. Interest applies to any capital (construction cost) that has not been paid. 

1. For irrigation refer to the water ratesetting full cost schedules for 9(d) rates of the 

transferor. 

2. For M&I, consult with the Water Ratesetting Branch to determine the applicable 

water rates. 

b. Interest for additional services is computed on contractors unpaid construction 

obligation based on applicable Treasury rates. 

9.4 CVPIA Charges and Assessments 

Charges under the CVPIA: 

a. Friant Surcharges - This charge is the same for all applicable M&I and Irrigation 

 users.

b. M&I Surcharges – This charge is applicable to water sold or transferred between a CVP 

 contractor and a non-CVP contractor when water is ultimately used for M&I purposes. 

 Surcharge is updated annually for applicable October through September deliveries.

c. Mitigation and Restoration charges – This charge is applicable to CVP irrigation and 

M&I water charge is updated annually for applicable October through September 

deliveries.

d. Water Transfer Charges – This charge is applicable to transfers between a CVP 

 contractor and a non-CVP contractor. 

1. Water used for irrigation purposes – The charge is the difference between the full cost 

rate per RRA 202(3) and the rate determined in Section C-1, through step 3. 

2. Water used for M&I purposes - The charge is the difference between the M&I rate 

and the rate determined in Section C-1, through step 3. 

Original: May 2008; Revised November 2012 5 
 

Trinity Public Utility District Assessment: 

Pursuant to Public Law 106-377, the Bureau of Reclamation assesses and collects $162,000 

annually, indexed for inflation, from CVP water contractors for remittance to Trinity PUD. 

The assessment is applicable to water delivered in Fiscal Year (FY) 2001 and thereafter. The 

assessment is updated annually for applicable deliveries from March through February. 

(This charge is the same for all CVP water delivered for irrigation and M&I use). It does not 

apply to exchange contractor water transferred. The applicable rate can be found in the long 

term Irrigation and M&I Water Rate Books, Schedule A-1. 

10.0 Revenue Application 

1. Transfers from a Renewal Contractor:

 a. The transferor’s cost of service rate (COS) will apply to the long term contract water 

 account for which the water is being transferred (irrigation or M&I). 

 1. Revenue should reflect any reductions to the cost of service rate such as direct 

 pumping O&M and applicable ATP capital relief. 

b. Interest Revenue 

 1. Interest Revenue associated with the transferor is determined and applied in the 

 following order: 

 i. If the transfer water includes additional interest associated with delivering 

 irrigation water to an M&I purpose the additional payments identified for M&I 

 interest are applied to the United States Treasury Fund (Treasury)6

 without 

 credit to project repayment or to the Restoration Fund. (Refer to section A-2 of 

 the Transfer guide). This interest revenue is determined by subtracting the 

 transferor’s irrigation COS rate less direct pumping O&M from its M&I COS 

 rate (or the special M&I rate). 

 ii. If the transfer revenue is priced at the tiered rates per the guideline, the 

 interest portion of the revenue associated with tiered pricing revenue is 

 applied to CVP Restoration Fund. 

c. Additional Component Service Rates 

 1. Additional CVP component service rate revenue necessary to deliver water to the 

 transferee are applied to the transfer purpose (irrigation or M&I) and the service 

 component used. 

d. Full Cost Revenue Application

 1. Full cost interest revenue associated with delivering water to full cost lands is 

applied directly to the Treasury without credit to the project. 

 2. Revenue from full cost incremental payments that exceed the full cost interest rate 

 component of the transferee is applied to the transferee’s capital obligation. 

 i. Full cost interest for exchange contractor water delivered to full cost lands under 

 a transfer is based solely on the difference of the full cost rate and the effective 

 rate for the transfer. This interest goes to the Treasury without credit to the 

 project. 

 ii. Full cost interest for transfers to non-CVP contractors are applied to the 

 Treasury to the extent that the interest under the RRA 205(a)(3) rate provides 

 

6

 Interest revenue to the Treasury refers that this revenue is not applied to the Project, available as Central 

Valley Project Improvement Act Activity Funding nor San Joaquin River Restoration funding. 

Original: May 2008; Revised November 2012 6 
 

 revenue in excess of the transfer charge (205(a)(3). 

 This interest is calculated as follows: 

 205(a)(3) rate less effective rate less transfers charges. 

e. CVP Restoration Fund charges are paid by the transferor after the water is delivered to 

 the transferee. This charge goes to the CVP Restoration Fund. If transferor has 

 ATP relief, Restoration charge is not due. 

f. Friant Surcharges are deposited to the San Joaquin River Restoration Fund beginning FY 

 2010. 

g. Transfer Charges for delivering water to a non-CVP water contractor are applied to the 

 Restoration Fund. 

h. M&I Surcharges are deposited to the Restoration Fund. 

i. Trinity PUD assessement collections are remitted to Trinity PUD in accordance 

 with Public Law 106-377. 

2. Transfers from a contractor who is not a renewal contractor 

 a. Revenue associated with the higher of the two contract rates is applied to the 

 transferor to the extent of their cost of service water rate. 

 b. Any additional revenue beyond that applied in full cost interest, associated 

 with the higher of the two rates, is applied to transferee as revenue and credited in 

 accordance with the Irrigation Ratesetting Document, 1988. 

 c Full Cost Revenue Application: 

 1. Additional interest revenue associated with delivering water to full cost 

 lands goes to the Treasury without application to project repayment. 

 2. Additional revenue identifiable to capital repayment is creditable to the 

 capital obligation of the transferee. 

 d. CVP Restoration Fund charges are paid by the transferor after the water is 

 delivered to the transferee. This charge is deposited to the CVP Restoration Fund. 

 e. Friant Surcharges are applied to the San Joaquin River Restoration Fund beginning 

 FY 2010. 

 f. M&I Surcharges are deposited to the Restoration Fund. 

 g. Trinity PUD assessment collections are remitted to Trinity PUD in accordance with 

 Public Law 106-377. 

Original: May 2008; Revised November 2012 7 
 

Illustration: Revenue Application for Transfer from a Renewal Contractor for an M&I Use 

(See Business Practice Guideline Table A-3 Example) 

 

Revenue Application (per A/F)

 

Transferor General Cost Offset

 

 

Cost of Service Rate of Transferor $19.11 

Conveyance Pumping Capital 

Dos Amigos PP $1.38

 

O’Neill PGP $0.84

 

Direct Pumping Capital $5.76 

Direct Pumping O&M 

 Westlands WD – SLC $2.31 

Effective Transfer Rate $19.11 $10.29

 

 Total A/F Delivered 500 A/F 500 A/F

 

 Revenue $9,555 $5,145 

General cost offset indicates revenue will offset total reimbursable costs for that component. 

 

Samples are for illustration purposes only. The actual pricing or application of 

revenue may vary based on individual circumstances. 

Original: May 2008; Revised November 2012 8 
 

Illustration: Revenue Application for Transfer from a Renewal Contractor for an M&I Use 

(See Business Practice Guideline Table A-4 Example) 

 

Revenue Application (per A/F)

Transferor General Cost Offset

 

 Cost of Service Rate of Transferor $19.11 

 Conveyance Pumping Capital 

 Dos Amigos PP $0.65 

 O’Neill PGP $0.40 

 

 Direct Pumping Capital 

 Westlands WD-SLC $1.43 

 Direct Pumping O&M 

 Westlands WD – SLC $2.54 

 Effective Transfer Rate $19.11 $5.02 

 Total A/F Delivered 1,000 A/F 1,000 A/F

 

 Revenue $19,110 $5,020 

General cost offset indicates revenue will offset total reimbursable costs for that component. 

Samples are for illustration purposes only. The actual pricing or application of 

revenue may vary based on individual circumstances. 

Original: May 2008; Revised November 2012 9 
 

Illustration: Revenue Application for Transfer from a Renewal Contractor for an M&I Use 

(Business Practice Guideline Section B-1 Example) 

Transferor has an M&I contract water rate of $23.47 which is their cost of service 

water rate. The water is transferred to an Irrigation contractor that has a contract rate 

of $21.56. The associated revenue would be applied as follows: 

 Since the cost of service water rate of the transferor is used, the transferor 

 would receive a credit for the full amount. 

 Revenue Application (per A/F)

 Transferor Transferee* 

Transfer Cost per A/F ` $23.47 $0.00 

 

 Total A/F Delivered 500 A/F 500 A/F

 

 Revenue $11,735 $0.00

 

*This difference in revenue will be applied consistent with Ratesetting Policy, first to 

O&M for the transferee’s function (in this example, Irrigation). 

Samples are for illustration purposes only. The actual pricing or application of 

revenue may vary based on individual circumstances. 

Original: May 2008; Revised November 2012 10 
 

Section A 

Transferor is a CVP renewal contractor / Transferee is a CVP contractor

Original: May 2008; Revised November 2012 11 
 

Section A 

Transferor is a CVP renewal contractor / Transferee is a CVP contractor 

Transferor: Irrigation, Renewal Contractor 

Transfer Purpose: Irrigation, CVP Contractor 

WORKSHEET DEVELOPMENT: 

Compile the transfer rate using the transferor’s cost of service rate. If the transferor is a 

Friant Division contractor who has entered into a Friant 9(d) contract, refer to Section 9.3 for 

further clarification of the rate development. 

Note: Ability to Pay relief does not apply when water is being applied to Full Cost 

lands. 

Original: May 2008; Revised November 2012 12 

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

 a. No, go to step 2 through 8. 

b. Yes. Determine the following and then go to step 2 through 8 (See Section A-1: 

Example 1) and consider recapture of O&M. 

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

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

 Restoration charge relief, the transferor’s allocable capital cost per acre-foot 

and the Mitigation and Restoration 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 Mitigation and Restoration 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 Mitigation and Restoration charge. The 

 amount relieved is applied to the Mitigation and Restoration charge; then, if 

 any remains, to the allocable capital cost per acre-foot of the transferor. 

2. Does the transfer require use of additional CVP services? 

a. No. Additional costs are not added. 

b. Yes. Identify the additional services to be used and the cost per acre-foot for each 

 service. Use irrigation rates from Irrigation Water Rates book schedule A-2Bb 

 (capital) and A-2A (O&M). 

i. Do not include allocable costs per acre-foot components for the San Luis Drain 

capital cost and Kesterson clean-up costs. 

ii. Include direct pumping capital as an additional component. 

3. Does the transfer require fewer CVP services? 

a. No. 

i. Do not deduct any components from the transferor’s rate. 

ii. Do not deduct San Luis Drain Kesterson cleanup costs. 

iii. No adjustments are made for capital services as these are fixed costs.

Are Both Contractors ATP?

Additional Services

Fewer Services
 

Section A 

Transferor is a CVP renewal contractor / Transferee is a CVP contractor 

b. 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. 

i. Deduct direct pumping O&M allocable costs per acre-foot component of 

 the transferor as identified on schedule A-2A of the Irrigation Water Rates book. 

Original: May 2008; Revised November 2012 13 

4. Does tiered pricing apply to transferor’s water? Tiered water rates are not applicable 

 for Sacramento River Settlement contractors. 

 a. No. Do not add tiered charges. 

b. Yes. Add the appropriate tiered irrigation charges, 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 charge will be included in the approval letter and accounted for when water 

 is transferred). 

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

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

b. 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 1 through 4, above.7

 

 These costs apply and are to be paid by the transferee the month after delivery. 

6. Apply current irrigation Mitigation and Restoration charge. To the extent of partial or 

 full ATP for the transferor and/or transferee, refer to Section 1.B.i. (a) and (b) for 

 determination of the Mitigation and Restoration charge.8

 

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

 Reservoir? 

 a. No. Friant surcharge does not apply. 

b. Yes. Friant surcharge applies. 

8. Apply the Trinity Public Utility District assessment on delivered water as 

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

 

7

 For Exchange Contractor Water delivered to the transferee’s Full Cost lands, the interest amount shall be 

determined based on the additional services necessary to effectuate the transfer (See Section A-1: Example 2). 

Please consult with the Financial Management Division to determine the interest amount per acre-foot. 

8

 Restoration Rate is not applicable when transferring San Joaquin River Exchange and Mendota Pool Settlement 

Contractors Water. 

Tiered Water Rates

Water On Full Cost Lands

Restoration

Friant Surcharge

Trinity PUD
 

Original: May 2008; Revised November 2012 14 
 

Original: May 2008; Revised November 2012 15 
 

Section A-2 

Transferor is a CVP renewal contractor / Transferee is a CVP contractor 

Transferor: Irrigation, Renewal Contractor 

Transfer Purpose: M&I, CVP Contractor 

WORKSHEET DEVELOPMENT: 

Compile the transfer rate using the transferor’s cost of service rate. If the transferor is a Friant 

Division contractor who has entered into a Friant 9(d) contract, refer to Section 9.3 for further 

clarification of the rate development. 

Original: May 2008; Revised November 2012 16 

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

a. Yes. Start with the higher of the transferor’s M&I or irrigation cost of service 

 water rate from M&I and Irrigation Schedules A-1 and do steps 2 through 7 

 below. 

b. No. Determine a temporary M&I water rate using the Special Water Rates book 

 that includes the same components as the transferor’s irrigation water. Use the 

 higher of this determined rate and the transferor’s irrigation cost of service water rate 

from Irrigation Schedule A-1 and do steps 2 through 7 below 

(See Section A-2 Example). 

2. Does the transfer require use of additional CVP services? 

a. No. Additional costs are not added. 

b. Yes. Identify the additional services to be used and the costs per acre-foot for each 

 service. Refer to the Special Water Rates book, Schedule TR-1 (capital) and 

 M&I Water Rates book, Schedule A-2A (O&M). 

i. Do not include allocable costs per acre-foot components for the San Luis 

 Drain capital cost or Kesterson clean-up costs.

ii. Include direct pumping capital as an additional component.

3. Does the transfer require fewer CVP services? 

a. No. 

i. Do not deduct any components from the transferor’s rate. 

ii. Do not deduct San Luis Drain Kesterson cleanup costs. 

iii. No adjustments are made for capital services as these are fixed costs. 

b. 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. 

i. Deduct direct pumping O&M component per acre-foot of the transferor’s 

 rate as identified on Schedule A-2A of the M&I Water Rates book.

M&I Cost of Service

Additional Services

Fewer Services
 

Original: May 2008; Revised November 2012 17 

4. Does tiered pricing apply to transferor’s water? Tiered Water Rates are not applicable for 

Sacramento River Settlement Contractors. 

 a. No. Do not add tiered charges. 

 b. Yes. Add the appropriate M&I tiered charges, 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 charge will 

 be included in approval letter and accounted for when water is transferred). 

5. Apply current M&I Mitigation and Restoration charge 

 

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

 Reservoir? 

 a. No. Friant surcharge does not apply. 

 b. Yes. The Friant surcharge applies. 

7. Apply the Trinity Public Utility District assessment on delivered water as 

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

Tiered Water Rates

Restoration

Friant Surcharge

Trinity PUD
 

Original: May 2008; Revised November 2012 18 
 

Section A-3 

Transferor is a CVP renewal contractor / Transferee is a CVP contractor 

Transferor: M&I, Renewal Contractor 

Transfer Purpose: M&I, CVP Contractor 

WORKSHEET DEVELOPMENT: 

Calculate the transfer rate using the transferor’s cost of service rate. If the transferor is a Friant 

Division contractor who has entered into a Friant 9(d) contract, refer to Section 9.3 for further 

clarification of the rate development. 

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

(see Section A-3 Example). 

a. Compile the transfer rate using the transferor’s M&I cost of service rate. 

2. Does the transfer require use of additional CVP services? 

a. No. Additional costs are not added. 

b. Yes. Identify the additional services to be used and the cost per acre-foot for each 

service. Use the Special Water Rates book, Schedule TR-1 (Capital) and M&I Water 

Rates book Schedule A-2A (O&M). 

i. Do not include allocable costs per acre-foot components for the San Luis 

 Drain capital cost and Kesterson clean-up costs. 

ii. Include direct pumping capital as an additional component. 

3. Does the transfer require fewer CVP services? 

a. No. Do not deduct any components from the transferor’s rate and no adjustments are 

made for capital services as these are fixed costs. 

b. 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. 

i. 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 Rates book. 

4. Does tiered pricing apply to transferor’s water? 

a. No. Do not add tiered charges. 

b. Yes. Add the appropriate M&I tiered charges, dependent upon the applicable 

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

 uncertain whether tiered charges apply, the tiered charges will be included in the 

 approval letter and accounted for when water is transferred. 

5. Apply current M&I Mitigation and Restoration charge. 

Original: May 2008; Revised November 2012 19 

M&I Cost of Service

Additional Services

Fewer Services

Tiered Water Rates

Restoration
 

Original: May 2008; Revised November 2012 20 

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

 Reservoir? 

a. No. Friant surcharge does not apply. 

b. Yes. Friant surcharge applies. 

7. Apply the Trinity Public Utility District assessment on delivered water as identified in

the policy letter sent to CVP water users dated March 12, 2007 

Friant Surcharge

Trinity PUD
 

Original: May 2008; Revised November 2012 21 
 

Section A-4 

Transferor is a CVP renewal contractor / Transferee is a CVP contractor 

Transferor: M&I, Renewal Contractor 

Transfer Purpose: Irrigation, CVP Contractor 

WORKSHEET DEVELOPMENT: 

Compile the transfer rate using the transferor’s cost of service rate. If the transferor is a Friant 

Division contractor who has entered into a Friant 9(d) contract, refer to Section 9.3 for further 

clarification of the rate development. 

1. Begin with the transferor’s M&I cost of service water rate (see Section A-4

Example).

a. Compile the transfer rate using the transferor’s M&I cost of service rate. 

2. Does the transfer require use of additional CVP services? 

a. No. Additional costs are not added. 

 b. Yes. Identify the additional services to be used and the costs per acre-foot for 

each service. Use irrigation rate from Irrigation Water Rates book schedule A-2Bb 

(capital) and A-2A (O&M). 

i. Do not include allocable costs per acre-foot components for the San Luis 

 Drain capital cost or Kesterson clean-up costs. 

ii. Include Direct Pumping capital as an additional component. 

3. Does the transfer require fewer CVP services? 

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

b. Yes 

i. Deduct appropriate O&M services. 

ii. Deduct direct pumping O&M cost component per a/f of the transferor as identified 

in the M&I Water Rates book. Supporting documentation is needed to 

document actual financial savings realized by the United States as a result of the 

transfer. 

4. Does tiered pricing apply to transferor’s water? 

a. No. Do not add tiered charge. 

b. Yes. Add the appropriate M&I tiered charge, dependent upon the applicable tier 

 (Consult the long-term contract, Exhibit B, for the applicable rate.). If uncertain 

 whether tiered charges apply, the tiered charge will be included in approval 

 letter and accounted for when water is transferred. 

Original: May 2008; Revised November 2012 22 

M&I Cost of Service

Additional Services

Fewer Services

Tiered Water Rates
 

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

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

b. 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 1 through 4, above. These costs apply to and 

are to be paid by the transferee the month after delivery.

6. Apply current Irrigation Mitigation and Restoration charge. 

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

 Reservoir? 

a. No. Friant surcharge does not apply. 

b. Yes. Friant surcharge applies. 

8. Apply the Trinity Public Utility District Assessment on delivered water as identified in 

 the policy lettersent to CVP water users dated March 12, 2007. 

Original: May 2008; Revised November 2012 23 

Water On Full Cost Lands

Restoration

Friant Surcharge

Trinity PUD
 

Original: May 2008; Revised November 2012 24 
 

Section B 

Transferor is not a CVP renewal contractor / Transferee is a CVP contractor

Original: May 2008; Revised November 2012 25 
 

Section B-1 

Transferor is not a CVP renewal contractor/Transferee is a CVP contractor 

Transferor: Irrigation or M&I - Not a Renewal Contractor 

 (For Exchange Contractors, Use Section A) 

Transfer Purpose: Irrigation, CVP Contractor 

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

below. If an M&I contractor, go to the section below where the transferor is an M&I contractor. 

Transferor is an Irrigation Contractor 

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

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

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

b. Yes. Transferee is subject to transferee’s full cost rate. The transferee must pay the 

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

full cost water rate is less than the water rate in step 1, there is no incremental charge. 

These costs apply to and are to be paid by the transferee the month after delivery. 

3. Apply current irrigation Mitigation and Restoration charge. 

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

 Reservoir? 

a. No. Friant surcharge does not apply. 

b. Yes. Friant surcharge applies. 

5. Apply the Trinity Public Utility District assessment on delivered water as identified in the 

policy letter sent to CVP water users dated March 12, 2007. 

Transferor is an M&I contractor (see Section B-1 Example) 

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

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

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

b. Yes. Transferee is subject to transferee’s full cost rate. The transferee must pay the 

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

full cost water rate is less than the water rate in step 1, there is no incremental charge. 

These costs apply to and are to be paid by the transferee the month after delivery. 

Original: May 2008; Revised November 2012 26 

Water On Full Cost Lands

Restoration

Friant Surcharge

Trinity PUD

Water On Full Cost Lands
 

3. Apply current irrigation Mitigation and Restoration charge. 

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

Reservoir? 

a. No. Friant surcharge does not apply. 

b. Yes. Friant surcharge applies. 

5. Apply the Trinity Public Utility District assessment on delivered water as identified in the 

 policy letter sent to CVP water users dated March 12, 2007. 

Original: May 2008; Revised November 2012 27 

Restoration

Friant Surcharge

Trinity PUD
 

Original: May 2008; Revised November 2012 28 
 

Section B-2 

Transferor is not a CVP renewal contractor / Transferee is a CVP contractor 

Transferor: Irrigation or M&I - Not a Renewal Contractor 

 (For Exchange Contractors, Use Section A) 

Transfer Purpose: M&I, CVP Contractor 

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

below. If an M&I contractor, go to the section below where the Transferor is an M&I Contractor 

(below). 

Transferor is an Irrigation Contractor 

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

a. 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. 

b. 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. 

2. Apply current M&I Mitigation and Restoration charge. 

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

Reservoir? 

a. No. Friant surcharge does not apply. 

b. Yes. Friant surcharge applies. 

4. Apply the Trinity Public Utility District assessment on delivered water as identified in 

 the policy letter sent to CVP water users dated March 12, 2007. 

Transferor is an M&I Contractor 

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

a. Yes. Use the higher of the transferor’s or transferee’s M&I rates. 

b. No. Choose the higher of the transferor’s M&I or temporary M&I contract rates 

(Special Water Rates book, schedule T-1). 

2. Apply current M&I Mitigation and Restoration charge. 

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

Reservoir? 

a. No. Friant surcharge does not apply. 

b. Yes. Friant surcharge applies. 

Original: May 2008; Revised November 2012 29 

Restoration

Friant Surcharge

Restoration

Trinity PUD

Friant Surcharge
 

4. Apply the Trinity Public Utility District assessment on delivered water as identified in the 

policy letter sent to CVP water users dated March 12, 2007. 

Original: May 2008; Revised November 2012 30 

Trinity PUD 
 

Section C 

Transferor is a CVP contractor / Transferee is not a CVP contractor 

Original: May 2008; Revised November 2012 31 
 

Section C-1 

Transferor is a CVP contractor / Transferee is not a CVP contractor 

Transferor: Irrigation or M&I, CVP Contractor 

Transfer Purpose: Irrigation or M&I, Not a CVP Contractor 

WORKSHEET DEVELOPMENT: 

Compile the transfer rate using the transferor’s irrigation cost of service rate if irrigation water is 

being transferred for an irrigation purpose. If Irrigation water is transferred for an M&I purpose, 

use the higher of the irrigation or M&I rate. Otherwise, the transferors’ M&I rate is used (see 

Section C-1 Example). If the transferor does not have an M&I rate, a temporary M&I rate would 

be used using the special water rates. If the transferor is a Friant Division Contractor who has 

entered into a Friant 9(d) contract, refer to Section 9.3 for further clarification of the rate 

development. 

1. Does the transfer require use of additional CVP services? 

a. No. Additional costs are not added. 

b. Yes. 

i. Identify the additional capital services to be used and the cost per acre-foot for 

each capital service. 

(a) For M&I, use the Special Water Rates book, Schedule TR-1 

(b) For Irrigation, use the Irrigation Water Rates book schedule A-2Bb. 

ii. Identify the additional O&M services to be used and the cost per acre-foot for each 

O&M service from the temporary water rates.9

2. Does the transfer require fewer CVP services? 

a. No. 

i. Do not deduct any components from the transferor’s rate. 

ii. Do not deduct San Luis Drain Kesterson cleanup costs. 

iii. No adjustments are made for capital services as these are fixed costs. 

b. 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. 

i. Deduct direct pumping O&M allocable costs per acre-foot component of the 

 transferor as identified on schedule A-2A of the applicable irrigation or M&I Water 

 Rates book. 

Note: Apply the water transfer charge.10

 

Original: May 2008; Revised November 2012 32 

9

 Energy use costs are to be in compliance with contracts set by the contracting officer. 10 This charge is applicable to transfers between a CVP contractor and a non-CVP contractor as required by CVPIA. 

These charges paid are deposited into the CVP Restoration Fund. 

A. Water used for irrigation purposes – The charge is the difference between the full cost rate per RRA 202(3) and 

the rate determined through step 3. 

B. Water used for M&I purposes – The charge is the difference between the M&I rate and the rate determined 

through step 3. 

Additional Services

Fewer Services
 

3. Do tiered water rates apply to transferor’s water? Tiered water rates are not applicable 

 for Sacramento River Settlement contractors or contractors who are not under renewal 

 contracts. 

a. No. Do not add tiered water rates. 

b. Yes. The full cost rate above, inclusive of the transfer charge, meets or exceeds 

the pricing requirements for tier pricing. As such, no additional incremental rate is to 

be determined for tier pricing. 

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

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

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

additional interest on all capital associated with delivering water required to be paid 

at the 205(a)(3) rate. These costs apply and are to be paid by the transferee the month 

Original: May 2008; Revised November 2012 33 

after delivery. 

i. The calculation of RRA 205(a)(3) rates follow a similar process for determining 

the full cost rates above under the 202(3) rates. If the rate is higher than 

determined under 202(3), the difference between the two rates applies as 

additional interest cost. 

5. Apply current irrigation or M&I Mitigation and Restoration charge based on the transfer 

 purpose. 

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

 Reservoir? 

a. No. Friant surcharge does not apply. 

b. Yes. Friant surcharge applies. 

7. Apply the Trinity Public Utility District assessment on delivered water as 

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

Tiered Water Rates

Water On Full Cost Lands

Restoration

Friant Surcharge

Trinity PUD
 

Original: May 2008; Revised November 2012 34 
 

Original: May 2008; Revised November 2012 35 
 

Original: May 2008; Revised November 2012 36 
 

Original: May 2008; Revised November 2012 37 
 

Original: May 2008; Revised November 2012 38 
 

Original: May 2008; Revised November 2012 39 
 

Original: May 2008; Revised November 2012 40 
 

Original: May 2008; Revised November 2012 41