View
1
Download
0
Category
Preview:
Citation preview
Reclamation District No. 108
Rate Structure Alternatives
TO DO’S Develop initial rate structure w/landowners
2015 field measurement troubleshooting
2015 irr. season share data/sample invoices
Refine rate structure based on 2015 experience
Produce rate memo
Hold majority protest election
Adopt rate by 2016 Irrigation Season
August 2014Rate Structure Alternatives
2
REVIEW OF SBX7-7Targeted major agricultural water suppliers (>
25,000 ac)
Agricultural water supplier shall:
Measure the volume of water delivered to each
customers
Adopt a pricing structure based at least in part on
volume of water delivered
Implement other Efficient Water Management
Practices (EWMPs) subject to local cost-effectiveness
and technical feasibility
August 2014Measurement Program Update
3
MEASUREMENT PROGRAM IMPLEMENTATION UPDATE
424 Weir Boxes installed for
gravity deliveries
51 Meters installed for pump
deliveries
During 2014 irrigation season,
deliveries south of County Line
Road were measured.
Remaining infrastructure
improvements will be installed
before the 2015 irrigation
season.
August 2014Measurement Program Update
4
RATE STRUCTURE ANALYSIS
Current Rate Structure Review
Historical Crop Rate Analysis ($/Acre)
Possible Rate Structures to Comply with
SBX7-7
Projected Crop Rate Analysis ($/Acre)
August 2014Measurement Program Update
5
CURRENT RATE STRUCTURE REVIEW
Rice $68 per acre
All Other $16.80 / acre for 1st Irrigation
$ 9.65 / acre for Each Subsequent
Irrigation
Per Acre-Foot $15.15 / acre-foot Measured by
Approved Meter
Note: Discounts are given for lands served by landowner’s re-lift pumping plants
August 2014Measurement Program Update
6
HISTORICAL CROP RATE ANALYSIS
August 2014Measurement Program Update
7
Compiled Statistics of Irrigations to Each Crop Using
Historical Irrigation Records from 2010 through 2013
Applied the Current Rates to Determine the Total Cost
for Water Service ($/Acre) for Each Crop
Average Cost per Crop
5th Percentile – 5% of Water Users pay this amount
or less
95th Percentile – 95% of Water Users pay this
amount or less
8
HISTORICAL ANALYSIS
August 2014Measurement Program Update
Possible Rate Components:
Irrigations – Bill on Number of Irrigations
Acres – Bill on Acres in Field
Fixed Crop Volume – Bill on Acre-Feet using Unit
Duties (AF/Acre) for each Crop
Volume of Water Delivered – Bill on Volume of Water
Measured by a Meter
others?
Note: Pricing Structure Must be Based “at Least in Part” on Volume of Water Delivered
August 2014Measurement Program Update
9
SAMPLE RATE STRUCTURES TO COMPLY WITH SBX7-7
Example #1 – 100% Measured
Bill fully on the Volume of Water Delivered
using the Volume Measured by a District
Flow Meter ($12)
Same as Per Acre-Foot Option of Current Water
Rate Structure
August 2014Measurement Program Update
10
SAMPLE RATE STRUCTURES TO COMPLY WITH SBX7-7
Example #2 – 33% Measured & 67% Crop Unit Duty
Bill 33% of costs on the Volume of Water Delivered using the Volume Measured by the District Flow Meter ($4/AF)
33% of RD 108’s Budget (Power and USBR costs) Varies Depending on the amount of Water Diverted, the Remaining is Fixed
Bill 67% of costs on a Assumed Crop Applied Water Unit Duty Basis ($8/AF)
Assumption includes the Crop Applied Water Unit Duties (AF/Acre) as used in the 2014 Water Allocation Policy and the Acreage of the Field
August 2014Measurement Program Update
11
CROP APPLIED WATER UNIT DUTIES
August 2014Measurement Program Update
12
Crop Acre-Feet/Acre
ALFALFA 4.50
BARLEY 2.00
BEANS 2.50
BUCKWHEAT 2.00
CANOLA 2.20
CARROTS 2.50
CLOVER 4.50
CONSERVATION 2.50
COTTON 3.30
CORN 6.00
GARLIC 1.50
MARKET VEG 2.50
MELONS 1.60
MILO 2.00
OATS 2.00
ONIONS 1.50
ORCHARDS 4.40
PASTURE 4.90
PUMPKINS 1.60
RICE - MEDIUM1 5.50
RICE - SHORT1 5.50
RICE - SWEET1 5.50
RICE - WILD1 5.00
SAFFLOWER 2.20
SOYBEANS 2.50
SUDAN GRASS 4.90
SUGAR BEETS 3.50
SUNFLOWERS 2.20
TOMATOES 2.30
VETCH 2.50
VINE SEEDS 1.60
WHEAT 2.00
Exhibit A - Applied Water Unit Duties
Reclamation District No. 108
PROJECTED ANALYSISThe Current and 2 Example Rate Structures were Analyzed for:
Rice – Comprises approximately 2/3 of District Lands
Alfalfa – Represents High Water Consumption Crops
Sunflower – Represents Low Water Consumption Crops
Assumptions in Analysis:
The Analysis Assumes the Average amount of Delivered Water to each crop equal to the Crop Applied Water Unit Duties (AF/Acre) as used in the 2014 Water Allocation Policy
The Analysis Assumes the 5th and 95th Percentiles are Equal to Plus or Minus 50% of the Crop Applied Water Unit Duty
August 2014Measurement Program Update
13
ANALYSIS FOR RICE
Current Rate
Fixed Rate for all Users $68/Acre
Alternative #1 – 100% Measured:
5th Percentile User 2.75 AF/Acre x $12 / AF = $33/Acre
Average User 5.5 AF/Acre x $12 / AF = $66/Acre
95th Percentile User 8.25 AF/Acre x $12 / AF = $99/Acre
August 2014Measurement Program Update
14
PROJECTED ANALYSIS FOR RICEAlternative #2 – 33% Measured & 67% Crop Unit Duty:
Measured Portion of Rate
5th Percentile User 2.75 AF/Acre x $4 / AF = $11/Acre
Average User 5.5 AF/Acre x $4 / AF = $22/Acre
95th Percentile User 8.25 AF/Acre x $4 / AF = $33/Acre
Crop Unit Duty Portion of Rate
All Users 5.5 AF/Acre x $8 / AF = $44/Acre
Total Cost for Water Service
5th Percentile User $11/Acre +$44/Acre = $55/Acre
Average User $22/Acre +$44/Acre = $66/Acre
95th Percentile User $33/Acre +$44/Acre = $77/Acre
August 2014Measurement Program Update
15
PROJECTED ANALYSIS FOR RICE
August 2014Measurement Program Update
16
PROJECTED ANALYSIS FOR ALFALFA
August 2014Measurement Program Update
17
PROJECTED ANALYSIS FOR SAFFLOWER
August 2014Measurement Program Update
18
CURRENT RATES
Advantages
Simulates approx. 80% volumetric rate without measurement for
non-rice crops
Lower cost to implement
Dis-advantages
Lacks relationship between water delivered and cost for rice
High charges for small volume/frequent irrigations
August 2014Measurement Program Update
19
ALTERNATIVE 1 – 100% MEASUREMENT
Advantages
Equity among water users, user pays more directly for service
received
Incentivizes reduced water use
Dis-advantages
District income would be more variable than the actual costs
which many are fixed
New meter program inaccuracy would have larger cost impacts
August 2014Measurement Program Update
20
ALTERNATIVE #2 – 33% MEASURED & 67% CROP UNIT DUTY
Advantages
District income tracks expenses with varying deliveries
Meter accuracy is less significant for rates
Dis-advantages
Less incentive to drive conservation
August 2014Measurement Program Update
21
2015 IRRIGATION BUDGET
INCOME $2,629,000
EXPENSE $3,479,000
CONTRACT CHARGE $ 869,000
PG&E $1,000,000
SYSTEM RENTAL $1,566,000
CONSERVATION $ 44,000
EXPENSES EXCEED INCOME BY $850,000
December 2014Measurement Program Update
22
QUESTIONS/DISCUSSION
August 2014Measurement Program Update
23
Recommended