Ratesetting Process
Irrigation Ratesetting Document
Water Rate Calculations
Using the methods and procedures previously described, water rates for each component and CVP long-term contractor are calculated annually. Pending final approval, the Component with Individual Contractor Deficits Ratesetting Method has been used on an interim basis to calculate individual contractor CVP water rates for the 1984, 1985, 1986, 1987 and 1988 water years.
Upon final approval, the Component with Individual Contractor Deficits Ratesetting Method will be used to calculate all CVP irrigation cost-of-service and RRA full-cost water rates. These rate determinations include provisions for annual operation and maintenance expenses, amortized rates for the applicable construction costs and rates to recover any accumulated O&M deficits (including interest pursuant to Section 106 of Public Law 99-546) and adjustments for individual contractor repayments to date. The full-cost rate also includes an interest charge on unpaid capital costs in accordance with the RRA.