Lower Colorado River Basin Project Economic and Financial Analysis

Attachment No. 3, Lower Colorado River Basin Project Economic and Financial Analysis, page 23. The Southern Nevada Water Supply Project is the subject of separate legislation. 4. The Moapa Valley Pumping Project has been deleted pending further investigations. 5. The Dixie Project was authorized by Act of September 2, 1964; however, it is proposed to be financially integrated into the Lower Colorado River Basin Project. 6. The Indian Irrigation Projects are already authorized under other legislation. 7. The recreation and fish and wildlife programs have been decreased by about $1,000,000 to accomodate the Supreme Court decree concerning allocation of main-stream water below Hoover Dam. 8. Pumping energy for the Central Arizona Unit is now scheduled to come primarily from Marble Canyon, with additional purchase during off-peak power generation periods. 9. The water supply of the Central Arizona Project is reduced significantly due to using a projected increase rate of depletion by the Upper Basin States and due to provisions of pending legislation that would accord to California a priority to 4.4 million acre-feet per year of main-stream water. Without water imports, these factors would reduce the average annual Colorado River diversions from 1,200,000 acre-feet per year over the payout period under the Pacific Southwest Water Plan to 900,000 acre-feet per year under the Lower Colorado River Basin Project. 10. The average rate for irrigation water remains at $10 per acre-foot; however, due to a higher interest rate, changed water supply and slight changes in the cost allocation, the average municipal and industrial water rate has increased from $45 to $50 per acre-foot. 11. The interest rate for financial payout of interest-bearing components is now 3.222 percent in accordance with current determinations versus 3.0 percent in the Pacific Southwest Water Plan. For benefit-cost analysis, the interest rate has increased from 3.0 to 3-1/8 percent. 12. The cost-sharing provisions of the Recreation and Fish and Wildlife Act have been included where appropriate, and area redevelopment has been removed from the cost allocation in accordance with current policy. 13. The costs of the water salvage and recovery programs have been treated tentatively as nonreimbursable to be consistent with treatment of the already authorized channelization programs and the Senator Wash Dam. Further consideration will be given to this item dependent upon future determination of the disposition of salvaged water. 2Epson Perfection 4870 Photo, 400 dpi, 8 bit, 1,317,036 byte