News Release Archive

Reclamation finalizes M&I Water Rate-setting Policy

Media Contact: Mary Lee Knecht, 916-978-5100,

For Release: January 06, 2021

SACRAMENTO, Calif. – Today, the Bureau of Reclamation announces the finalization of the Municipal and Industrial Water Rate-setting Policy for Central Valley Project water contractors. This accomplishment provides agreement between CVP contractors, Reclamation, and the Department of the Interior regarding the recovery of the CVP cost for M&I water users.

“This is a great milestone that has been outstanding for many years,” said Regional Director Ernest Conant. “The finalization of this policy will provide our M&I water contractors with greater certainty, so they can better plan into the future. Thank you to the Reclamation team and CVP partners who worked so diligently to see this achievement through.”

The rate-setting policy reflects the recovery of the federal investment for construction, operation and maintenance of the CVP for M&I water users. It provides the methodology for cost to be recovered through annual water rates and distributed between the M&I contractors for services that Reclamation offers. This policy has been reviewed extensively by Reclamation and by CVP water contractors and their representatives.

Consistency in the application to the Irrigation Water Rate-setting Policy is a policy premise. A significant change to the final policy from the interim policy is that M&I annual operation and maintenance deficit accumulated are recovered through 2035, where before they were recoverable through 2030. Another change was to eliminate the minimum water rate, which was previously set at $15 per acre-foot. The policy, as approved, will be applicable for the 2021 water rates and associated 2021 water contractor accounting year.

The policy is available here Contact Reclamation Finance Manager, Ann Lubas-Williams for more information regarding the policy at or (916) 978-5024 (TTY 800-877-8339).

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The Bureau of Reclamation is a federal agency under the U.S. Department of the Interior and is the nation's largest wholesale water supplier and second largest producer of hydroelectric power. Our facilities also provide substantial flood control, recreation opportunities, and environmental benefits. Visit our website at and follow us on Twitter @USBR; Facebook @bureau.of.reclamation; LinkedIn @Bureau of Reclamation; Instagram @bureau_of_reclamation; and YouTube @reclamation.

Relevant Link:

CVP Laws, Regulations, and References