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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 for reference 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

The interim solution to use a 3-year average of 165,000 a/f, or 55,000 a/f per year in 

consideration of the dry year provisions has been carried over to the 2010 water rates. The 

EBMUD 2010 projected deliveries will be 27,500 a/f (50% of the calculated contract 

entitlement).

Site Security Costs

Security/guards and patrol costs projected for FY 2010 are included in the water rates. The 

estimated costs for FY 2010 are $3,009,891 for Irrigation and $488,964 for M&I; these are gross 

costs as provided by our Denver office. The reimbursable amount included in the rates have been 

adjusted based on 2 years of history to $1,391,171.73 for Irrigation and $225,999.25 for M&I to 

more accurately reflect the reimbursable portion of these costs.

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.
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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 Trueup 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
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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, mailto:mawolfe@usbr.gov or by 

fax at 916-978-5392.