Financing the Central Arizona Project

Document: Financing the Central Arizona Project, May 1967? page 6a reasonable price. If it turns out that Arizona continues to get its full water entitlement throughout the 50-year payout, the additional revenues from the sale of irrigation and M&I water would more than offset the loss of anticipated revenues from the sale of commercial power. Surplus revenues from Hoover-Parker-Davis The above analysis demonstrates that the Central Arizona Project can be financed, and the Government repaid its investment, without the usual subsidy from surplus power revenues of a hydroelectric project. The key to the plan is that irrigation is subsidized by either M&I water charges, or local taxes, or possibly some combination of the two. There are, however, substantial surplus power revenues from existing lower Colorado River dams available to assist the repayment of irrigation costs. Surplus revenues from the existing Hoover-Parker-Davis dams which have not yet been allocated for financial assistance could total almost $500,000,000 over the 50-year payout period of the Central Arizona Project. Since Arizona uses and pays for 23% of the total power from these projects, it should be entitled to at least that percentage of this surplus or about $110,000,000. With this as a "cushion", in case it is needed, there should be no question about the financial soundness of Central Arizona Project as proposed by Senator Hayden and the Administration. 6Epson Perfection 4870 Photo, 400 dpi, 8 bit, 962,613 byte