Foreword

Background: This foreword provides a summary of significant changes from 

prior years in amounts and/or procedures, including new legislative requirements 

and impacts; as well as, input received from water contractors, associated water 

authorities, and the Central Valley Project Water Association (CVPWA) on the 

2010 Central Valley Project (CVP) water rates and the fiscal year 2008 water 

contractor accountings. 

The fiscal year 2008 contractor accountings are provided in final form. The 2010 

CVP water rate schedules are posted on the Bureau of Reclamation’s website at 

www.usbr.gov/mp.cvpwaterrates/. If there are any problems accessing the site or 

viewing the schedules, please contact Ms. Kathryn Osborn at 916-978-5364. 

East Bay Municipal Utility District (EMUD)Projected Deliveries

In consideration of the dry year provisions of EBMUD’s contract, prior year’s rates 

computed the contractor’s projected deliveries of 55,000 a/f using a 3-year average 

of 165,000 a/f. In the rates for WY 2010, EBMUD’s projected deliveries of 

23,200 a/f are based on its capacity with the nearing completion of the Freeport 

Project. 

Site Security Costs

Security guards and patrol costs projected for FY 2010 are included in the water 

rates and have been updated for the final rates. The estimated costs for FY 2010 

are $2,996,663.81 for Irrigation and $486,959.02 for M&I; these are gross costs as 

provided by our Denver office. The estimated reimbursable amount included in the 

rates is $1,385,058.01 for Irrigation and $225,072.46 for M&I. These amounts are 

based on a 2-year history of actual costs to more accurately reflect the 

reimbursable portion. 

American River Pump Station Project

Storage capital has been adjusted in the final 2010 rates to reflect the American 

River Pump Station Project as non-reimbursable pursuant to Public Law 122 SEC. 

503 –May 8, 2008. 
American Recovery and Reinvestment Act (ARRA)

The ARRA legislation permits the reimbursable costs of O&M expenses funded 

with these funds to be repaid over an extended period of time. Reclamation will 

recover the reimbursable ARRA funded O&M costs over a 10-year period. The 

FY 2010 estimated reimbursable O&M costs are included in the final rates on a 

proportional basis. 

Red Bluff Pumping Plant

Conveyance O&M expense has been reduced in the final rates by $267,841 for 

Irrigation and $2,962 for M&I to exclude estimated expenses associated with the 

Red Bluff Pumping Plant. This project is authorized under the provisions of the 

Central Valley Project Improvement Act (CVPIA) and the expenses will be 

incorporated in the annual Expenditure, Credit and Offset report. 

Trinity Public Utilities (PUD) Assessment

In accordance with Public Law 106-377, Section 203, Reclamation will collect the 

PUD from water contractors of $162,000 (indexed) annually and remit the amount 

to the Trinity Public Utility District. For 2010, the assessment will again be 

handled outside of the water rate setting calculations. The 2010 assessment rate 

has been calculated to be $0.11* per acre foot. This assessment along with the 

restoration charges and Friant surcharges per acre foot will be shown in Schedule 

A-1 of the Irrigation and M&I water rate books under “Assessments and Charges”. 

* This rate is based on current water year allocations and will be re-evaluated when the 2010 water year 

allocations are issued. 
Projected Water Deliveries

For the 2009 rates, projected deliveries from schedule A-12 were used to calculate 

the current year projected deliveries for M&I schedules A-15, A-14, and A-13; as 

well as Irrigation schedules A-14 and A-13. For the 2010 rates, the projected 

deliveries are calculated using OCAP percentages multiplied by individual 

contractor entitlement (schedule A-14), or they are calculated using a cumulative 

average starting from 1995 (schedules A-15 and A-13). 

Water Marketing

The Irrigation and M&I estimated general expense is based on 18.5 percent of the 

budgeted costs. For 2010, the Irrigation and M&I estimated general expense is 

$756,000 ($4,089,000 x 18.5%).

Storage and Conveyance Pumping (O’Neill Pumping Plant)

For FY 2010, the estimated O&M expense includes projected reimbursable O&M 

expense for projects funded by the American Recovery and Reinvestment Act 

(ARRA). 

Rescheduled Water and Incremental Transfer Revenue

Rescheduled water revenues (Irrigation or M&I) have been applied to storage 

capital beginning in fiscal year 2004 (refer to schedule A-4) in accordance with a 

prior Reclamation management decision. For 2010, incremental transfer revenue 

has also been applied as a credit to applicable capital cost components. A list of 

incremental revenue is included with the Final Water Rates Schedules as a 

supplemental schedule titled “Incremental Revenue”.
Project Use Energy (PUE) Costs for FY 2008 Accountings

The PUE costs by component/facility included in the FY 2008 Accountings are 

based on the Schedule of Estimated PUE Costs (Schedule A-11) from the 2008 

Rate book. It includes a True-up of FY 2007 PUE costs; FY 2007 True-up for 

Bella Vista (McConnell Foundation water). The breakdown of the FY 2008 PUE 

expenses is shown below: 

• Estimated PUE Costs from 2008 Schedule A-11 $18,500,000 

• FY 2007 PUE True-up adjustment 1,291,550 

• FY 2007 PUE True-up adj. for Bella Vista (McConnell Adj.) 1,587 

o Total Irrigation and M&I PUE Expenses in FY 2008 $19,793,137 

Allocation of Project Use Energy (PUE) Costs for FY 2008 Accountings

In prior years, the allocation of PUE expense has been based on actual delivered 

acre feet during the fiscal year. Beginning in FY 2008, rescheduled water taken is 

now included with actual delivered acre feet in the allocation of PUE expense. 

If you have any questions regarding the CVP FY 2008 final accountings, or the 

CVP 2010 draft water rates, please contact Ms. Autumn Wolfe at 916-978-5391, 

awolfe@usbr.gov or by fax at 916-978-5392.