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 

2008 Central Valley Project (CVP) water rates and the fiscal year 2006 water 

contractor accountings. 

The fiscal year 2006 contractor accountings are provided in final form. Please note 

that Reclamation has a site on the Internet where the 2008 CVP water rate 

schedules are posted for reference. This site can be accessed at 

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

viewing the schedules, please contact Ms. Julie Morrow at 916-978-5361. 

East Bay Municipal Utility District (EMUD)Projected Deliveries

Reclamation, with considerations of the dry year provisions of the amendatory 

contract, interprets the contract maximum entitlement for EBMUD to be the 3-year 

average of 165,000 a/f, or 55,000 a/f per year. Please note that this is an interim 

solution that has been carried over to the 2008 water rates. Reclamation will be 

collaborating in the near future with EBMUD and other CVP contractors in 

developing a long-term solution. The EBMUD 2008 projected deliveries will be 

27,500 a/f (50% of the calculated contract entitlement). 

Tracy Pumping Plant Name Change

The Tracy Pumping Plant has been renamed the Bob Jones Pumping Plant. All 

applicable schedules have been updated with the new name. 

Rate Setting Schedule Terminology Changes

We have updated Rate Setting terminology on the schedules. The schedules 

now reflect O&M costs per acre-foot and Capital costs per acre-foot. 
Site Security Costs

Security/guards and patrol costs are included in the 2008 water rates. The 

estimated costs for FY 2008 are $2,836,705 for Irrigation and $446,934 for 

M&I. 

San Felipe Unit (Out-of-Basin) Contractor Deliveries

The San Felipe Unit (Out-of-Basin) contractor deliveries have been removed from 

the water rates, due to amendments to the contracts. Capital costs associated with 

Out-of-Basin facilities will now be repaid through a separate repayment contract. 

Mercy Springs WD Assignment to Westlands WD DD #2

The Mercy Springs WD partial project water assignment to Westlands WD DD #2 

is now shown separately from Westlands WD in the rate books. It is considered a 

separate legal entity and as such will have its own accounting and rates. 

Associated capital repayment amounts have been separated from Westlands WD 

and credited to Westlands WD DD #2. 

Broadview WD Assignment to Westlands WD

Broadview WD has assigned all of its project water to Westlands WD effective 

3/01/2007. As a result, Broadview WD has been combined with Westlands WD in 

the rate schedules. 

Trinity Public Utilities (PUD) Assessment

Public Law 106-377, Section 203 directs the Bureau to collect from water 

contractors the assessed amount of $162,000 (indexed) annually and remit the 

amount to the Trinity Public Utility District. For 2008, the assessment will again 

be handled outside of the water rate setting calculations. Rate setting has 

calculated an assessment rate of $0.07 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 book under “Assessments and 

Charges”. 
Projected Water Deliveries

There has been no change in the methodology for computing projected deliveries 

since FY 06. 

Water Marketing

As a result of an analysis performed by Reclamation, it was determined that the 

Irrigation and M&I estimated general expense would be based on 18.5 percent 

of the budgeted costs. For 2008, the Irrigation and M&I estimated general 

expense is $677,000 (18.5% times $3,657,000). 

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 2008, incremental transfer 

revenue has also been applied as a credit to applicable capital and O&M cost 

components. 

Project Use Energy (PUE) Costs for FY 2006 Accountings

The actual FY 2006 PUE costs by component/facility will be based on the 

Schedule of Estimated PUE Costs (Schedule A-11) from the 2006 Rate book. It 

will include an FY 2005 PUE True-up adjustment, an FY 2006 estimated PUE 

adjustment for Bella Vista (McConnell Foundation water), and an FY 2005 

PUE True-up Adjustment (McConnell Foundation water). These totals will 

then be reconciled back to the total PUE expenses reported on Schedule No. 16. 

Here is a breakdown of the actual FY 2006 PUE expenses: 

• Estimated PUE Costs from 2006 Schedule A-11 $17,775,000 

• FY 2005 PUE True-up adjustment 1,923,948 

• FY 2006 Estimated Bella Vista PUE (McConnell Adj) -24,205 

• FY 2005 Bella Vista PUE True-up (McConnell Adj) 2,841 

o Total Irrigation and M&I PUE Expenses in FY 2006 $19,677,584 
If you have any questions on the 2008 CVP water rates, please contact the applicable Ratesetting 

Service staff: 

Irrigation: Ms. Maureen Reynoso at 916-978-5374, mreynoso@mp.usbr.gov; or Ms. Ingrid 

Goettl-Goswell at 916-978-5370, igoettleboswell@mp.usbr.gov. 

M&I: Ms. Masako Altman at 916-978-5365, maltman@mp.usbr.gov; or Ms. Autumn Wolfe at 

916-978-5391, awolfe@mp.usbr.gov; or any of the above by fax at 916-978-5392.