United States Department of the Interior 

BUREAU OF RECLAMATION 

Mid-Pacific Region 

2800 Cottage Way 

Sacramento, California 95825-1898 

IN REPLY REFER TO: 

MP-3400 

2.2.4.22 AUG 2 ! 2019 

To: Central Valley Project Water Contractors 

Subject: Fiscal Year (FY) 2018 Central Valley Project (CVP) Contractor Annual Accounting 

Analysis for Irrigation and Municipal and Industrial (M&l) Water 

Dear Water Contractor: 

The CVP FY 2018 (October 2017 through September 2018) Irrigation and M&I annual accounting is 

complete. Enclosed for your review is the annual accounting analysis (analysis) for your contract. 

Part One of the Analysis 

This section identifies: 

• Water charges for FY 2018 

• Contractor' s share of Project Use Energy O&M costs (Recovered on behalf of the Western Area 

Power Administration) 

• Contractor's share of CVP operation and maintenance (O&M) costs (includes extraordinary 

operation and maintenance costs) 

• Water charges applied to outstanding deficit and construction obligations (if any) 

• Contractor's surplus or deficit for FY 2018 

If your analysis shows a negative balance for part one, then your contract has a deficit for this period. 

Deficits for O&M may be paid pursuant to the voluntary payment policy which can be found on the 

Bureau of Reclamation' s website at http://www.usbr.gov/mp/cvp/laws.html. lfthe deficit is not paid 

within 30 days, interest will accrue on the balance and a deficit component will be included in future 

water rates to recover this obligation by the year 2030. 

If your analysis shows a positive balance for part one, then your contract has a surplus for this period, 

and you may be eligible for a refund. You are eligible to receive a refund to the extent: I. All water 

charges have been paid for the FY as part of part two; and 2. The surplus is greater than $1,000. In 

accordance with the water serv ice contract, if the amount is less than $1 ,000, the amount will be 

applied toward any of the contractor's outstanding obligations. If the contractor does not have any 

outstanding obligations, the surplus amount will be refunded at the contractor' s request. 
Part Two of the Analysis 

This section identifies: 

• Water charges for FY 2018, and payments received 

· • Applicable surcharges for FY 2018, and payments received 

• Calculation of over/under payment (if any) of water charges and surcharges 

Detailed payment information is shown in the enclosed payment analysis, including the check 

number, payment total, and how the payment was applied to charges. If your analysis shows an 

overpayment of charges, this indicates that water charges were paid as required by the provisions of 

your contract and the overpayment can be applied toward other outstanding obligations, future water 

charges, or refunded. Please notify the Bureau of Reclamation within 30 days of this letter regarding 

how you would like your overpayment applied. If no notification is received, overpayments will be 

applied based on ratesetting policy. Overpayments ofCVP Improvement Act (CVPIA) and Trinity 

Public Utility District (TPUD) charges cannot be applied to water charges nor refunded; however, the 

overpayment can be applied toward future CVP~A or TPUD charges. 

If your analysis shows an underpayment of charges, this indicates that your charges have not been 

fully paid as required by the provisions of your contract. Underpayment of charges identified in the 

enclosed analysis is due within 30 days of this letter. If not paid within 30 days, interest and penalties 

will be applied to the amount due. 

Payments for underpaid water charges and voluntary payments of a deficit balance, if applicable, 

should be sent with a copy of this analysis to: 

DOI - BOR- Region: Mid-Pacific 

P.O. Box 6200-24 

Portland, OR 97228-6200 

If you have any questions, please contact Ms. Cynthia Calvillo at (916) 978-5239, by e-mail at 

ccalvillo@usbr.gov or by fax at (916) 978-5392. 

Sincerely, 

Enclosures