IRRIGATIOU RATESETTING DOCUMENT

CENTRAL VALLEY PROJECT

CALIFORNIA

Description of the

Component With Individual Contractor Deficits

Ratesetting Method

1988

Bureau oiT Recl0.mationMid—Pacific Region

Sacramento, California

C.- •‘

CONTENTS

PURPOSEAND BACKGROUND I

Background. . 1

CVP Legislative History. . 1

History of CV? Water Ratesetting Policies. 3

1940 — 1969 3

1970 — 1980 3

1981 — 1983 5

1984 — Present 6

CVP COST ALLOCATION PROCEDURES 8

RATESETTING POLICY DESCRIPTION 9

Legal and PolicyConsiderations 9

Policy Provisions 9

COMPONENTWITH INDIVIDUAL CONTRACTORDEFICITSRATESETTING METHOD 12

Description of Ratesetting Method 12

WATER RATE CALCULATIONS 17

SCHEDULE 1 — CV? IRRIGATION FULL O&M, COST OF SERVICEAND FULL COST (INCLUDING FULL O&K) WATER RATES PERACRE—FOOTBY CONTRACTORFOR 1988 IS

ii

PURPOSEAND BACKGROUND

The purpose of this document is to present the procedures andmethodologies utilized in calculating water rates for the CentralValley Project CCV?) under the Component with Individual ContractorDeficits Ratesetting Method and to provide a brief history of the CV?and the different ratesetting methods that have been utilized sinceits beginning. Also included is a description of the cost allocationprocedures used in the CV?, a description of many of the premisesincluded in the ratesetting method and a detailed description of theprocedures utilized in computing water rates under the Component withIndividual Contractor Deficits Ratesetting Method.

Background

The CV? was first authorized by the California Legislature as a Stateproject. Approved by the Governor on August 5, 1933, the CV?immediately became the subject of a State referendum petition whichrequired that the CV? be approved by the electorate. The election washeld in December 1933, and the CV? was approved by the voters.

State officials then turned to the problem of financing the CV?. TheState Legislature had authorized the sale of public bonds as a meansof financing the construction of the CV?, but the public bonds werefound to be unmarketable. Requests for Federal grants and loans toaid in the financing of the CV? were submitted and turned down.Because of the financing difficulties, State officials then asked theFederal Government to undertake construction of the CV?.

CV? Legislative History

The U.S. Congress authorized construction of the initial CV?facilities in the River and Harbors Act of August 30, 1935 (49 Stat.1028, 1038). The Act authorized the U.S. Army Corps of Engineers toconstruct the following project facilities: the Shasta, Keswick andFriant Dams, the Tracy Pumping plant, the Delta—Mendota andFriant—Kern Canals, and the Contra Costa Canal and related facilities.On September 10, 1935, the President signed an Executive Order whichtransferred $20 million of Emergency Relief Act funds •to theDepartment of the Interior for construction of Friant Dam and theother features of the initial CV?. The finding of feasibility onwhich to base the reauthorization of the CV? under provisions of theReclamation Act of June 17, 1902 (32 Stat. 388), and all actsamendatory and supplementary thereto, was approved by the Secretary ofthe Interior and the President on October 26, 1935 and December 2,1935, respectively.

Congressional reauthorization of the initial CV? facilities underReclamation law was provided for in Section 2 of the River and HarborsAct of August 26, 1937 (50 Stat. 844) and in the River and Harbors Actof October 17, 1940 (54 Stat. 1198). Since then, the Congress hasauthorized the construction and operation of several additional CV?units, divisions and facilities.

In many cases, the legislation authorizing the construction andoperation of a new CV? unit, division or facility included languagereauthorizing the entire CV?. Regardless of whether or not the entireCV? was reauthorized, however, the authorizing legislationconsistently contained language requiring the new unit, division orfacility to be operated and repaid as an integral part of the CV?.

Additional units and facilities authorized as integral parts of theCV? include: the American River Division (Folsom, Nimbus, and Sly ParkDams and related facilities) (Act of October 14, 1949, 63 Stat. 852);the Sacramento Valley irrigation canals (Red Bluff Diversion Dam,Corning Canal, and Tehama—Colusa Canal) (Act of September 26, 1950, 64Stat. 1036); the Trinity River Division (Act of August 12, 1955, 69Stat. 719); the San Luis Unit (June 3, 1960, 74 Stat. 156); the NewMelones, Hidden and Buchanan Projects (October 23, 1962, 76 Stat. 1191and 1192); the Auburn—Folsom South Unit (Act of September 2, 1965, 79Stat. 615); the San Felipe Division (Act of August 27, 1967, 81 Stat.173); the Black Butte Project (Act of October 23, 1970, 84 Stat.1097); and the Allen Camp Unit (Act of September 28, 1976, 90 Stat.1328).

Water supplies produced by the CV? are marketed primarily pursuant tothe Reclamation Project Act of August 4, 1939 (53 Stat. 1187). ThisAct provides the basic concepts and provisions included in all CVPrepayment and water service contracts. In addition, the Acts of July2, 1956 (Public Law 84—643, 70 Stat. 483) and June 21, 1963 (PublicLaw 88—44, 77 Stat. 68) contain provisions applicable to the renewalof Federal Reclamation water service contracts.

The Reclamation Reform Act of 1982, (Public Law 97—293, 96 Stat. 1263)was signed by the President on October 12, 1982. While retaining thebasic principle of limiting the amount of owned land which may receiveirrigation water deliveries from Reclamation projects, the Actintroduced the concept of full—cost pricing (including interest on theunpaid plant investment) for certain irrigation water deliveries toleased lands.

The Act of October 17, 1986, (Public Law 99—546), was signed by thePresident on October 27, 1986. This Act codified certain existing CV?ratesetting practices (such as the automatic adjustment of water ratesin new and/or amended contracts to ensure payout of the existingFederal investment by the year 2030) and provided for some new CV?ratesetting provisions including the last sentence in Section 105 withrespect to the adjustment of individual contractor’s ability to paydeterminations every five years and Section 106 which requires that

2

each new or amended contract for the delivery of water from the CV?include provisions requiring each contractor to pay any annual deficitincurred by that contractor together with interest on any such deficitwhich arises on or after October 1, 1985.

History of CVP Water Ratesetting Policies

1940 — 1969

The first CV? water service contracts were negotiated and entered intoduring the late 1940’s. The initial CV? water rate structureconsisted of a graduated scale, ranging from $2.00 per acre—foot forirrigation water in the Sacramento Valley (near the source of supply)to $3.50 per acre—foot for irrigation water service in the San joaquinValley (south of the Delta formed by the Sacramento and San JoaquinRivers). The same water rates applied to all of the contractors ineach service area regardless of the contract date. While contractsdid not include provisions for rate changes, uniform contractexpiration dates were used in some service areas in order tofacilitate service area contract negotiations upon renewal.

The San Luis Unit was authorized in 1960 based on a feasibility reportwhich contained an irrigation water service rate of $7.50 per.acre—foot. This rate was included in the San Luis service areacontracts with the rate remaining constant throughout the 40—year termof the contracts.

By the mid—1960’s, the repayment status of the CV? indicated thatwater rates were too low and that fixed rate contracts for 40 yearswould not produce sufficient revenues to recover both increasingannual operating costs and the sunk capital investment costs. Stepswere taken to modify the ratesetting policy for new contracts in orderto provide for rate adjustments during the term of each new contractand ensure the recovery of the escalating cost of operations.

1970 — 1980

Major revisions to the CV? ratesetting policy were proposed in 1970.Under that proposal, irrigation water service rates would be based on75 percent of the irrigator’s available payment capacity, but the ratestructure would include separate segments for annual operating costsand capital investment costs. The annual operating cost segment wasto be adjustable at 5—year intervals in order to facilitate the fullrecovery of actual operation, maintenance and replacement expenses.The capital segment was to be adjusted in the 20th and 30th years ofthe 40—year water service contract, and the adjustment was to be basedon a reevaluation of the irrigator’s payment capacity in each of those2 years.

The 1970 ratesetting policy proposal was based on three majorcomponent charges for services provided by the CV?:

3

—— A Delta Service Charge for storage north of the Delta. Thiscomponent would be subject to change in 1996 and every 5 yearsthereafter, with a maximum change of 20 percent for each 5—yearadjustment. Further, financial assistance in the form ofmunicipal and industrial water supply revenues was specificallyincluded in the irrigation water rate calculations. The amountof aid was limited to 20 percent of the total revenue creditedfor repayment of the Delta service costs. The 1996 date wasselected because it coincided with a major portion of the CVP’ smunicipal and industrial water contract renegotiations.

—— A Conveyance Charge to reflect the contractor’s share of CV?costs associated with the specific conveyance facilities beingused to serve the contractor. This component was adjustable 5years after the initial water delivery date and at the end ofeach 5—year period thereafter.

—— A Pumping Charge for the use of CVP pumping facilities in thedelivery of water to the contractor. The pumping charge wasadjustable at the same time as the Delta Service Charge.

Implementation of the irrigation portion of the 1970 pr6posed policynever occurred because there were no new CV? irrigation contractsexecuted between the completion of that policy and 1974 when revisionsto the ratesetting policy were adopted.

In 1974, the concept of dete~mining CVP water rates based on theactual cost of providing water service to each contractor(cost—of—service) was introduced. Under this concept, water rates fornew contracts were to be equal to the lesser of the cost—of—service orthe irrigator’s payment capacity. The repayment of irrigation capita].costs that were beyond the irrigator’s ability to ‘nay were to berecovered from the surplus revenues Erom power and municipal andindustrial water sales.

In the cost—of—service concept, the single or “pooled” storageprocedure was extended from just those north of the Delta (DeltaService Charge), to the pooling of the costs of all of the CV? storagereservoirs. Therefore, all CV? water users would share equally (on acost per acre—foot basis) in the repayment of total CV? storage costs.It was proposed that all conveyance charges would be “pooled” and asingle CVP—wide charge would be made for conveyance services received.Accordingly, all contractors requiring conveyance services would alsoshare equally (on a cost per acre—foot basis) in the repayment of theconveyance costs of the CV?.

Along with this major change in the rate determination process, allnew CV? water service contracts executed during the period 1974through 1978 included some form of provision for water rateadjustments. Between 1979 and the enactment of the Reclamation ReformAct of 1982, all new CV? irrigation water service contractsincluded a provision for rate adjustments at 5—year intervals.

4

Another major revision in the irrigation ratesetting policy was theestablishment of a minimum CVP water rate of $3.50 per acre—foot.That rate was deemed sufficient when it was established as the ratemet all costs associated with the delivery of CV? water from storage.It was anticipated that over time the minimum charge would have to beadjusted to reflect increases in project construction costs and annualoperating expenses.

In January 1978 and September 1979, the Office of the InspectorGeneral of the Department of the Interior issued audit reports whichwere critical of several of the water marketing, financial andratesetting practices in the CVP. These reports stated that all ofthe reimbursable functions of the CV? were in serious financialtrouble and would continue to be so unless basic operation policies,contract terms, rate adjustment provisions and, possibly, existinglaws were changed. The audit reports stated that the problem was thecumulative result of actions taken during many years and that theBureau of Reclamation, the Department of the Interior and Congressmust share the responsibility for this situation.

1981 — 1983

In January 1981, a draft CV? ratesetting policy was released forpublic review and comment. The draft policy included four types ofservice charges: water marketing, storage, conveyance and projectpumping. The charge for each service included components for recoveryof the applicable capital and annual operating costs. The total rateto be applied to each water user depended on the number of CV?services required to deliver water to that particular contractor. Theper acre—foot irrigation charge was based on the lesser of the actualcost—of~-service or the irrigator’s payment capacity, but in no casewas the irrigation rate to be less than the actual operation,maintenance and replacement expenses. In addition, the draft policyincluded the $3.50 per acre—foot minimum charge for CV? irrigationservice.

The 1981 draft policy provided for the repayment of CV? costsallocated to irrigation within 50 years from the time each major CV?addition became operational. Under this concept, revenues in excessof actual operating expenses were applied towards the repayment of theolder additions first, thereby meeting the “repayment within 50 years”criterion. The water deliveries used in the water rate calculationswere th.e total of •the most recent forecast of CV? irrigationdeliveries for the next 50 years, beginning in the year in which thecalculations were made. The deliveries in any given year were subjectto the maximum available capacity of the CV? facilities included inthe cost base.

Also included in the draft ratesetting policy was a provision for rateadjustments every 5 years.~ Accordingly, the water service rate foreach contractor would be adjusted every 5 years to reflect the plant

5

investment projected to be in—service during the next 5—year periodand the annual operating expenses associated with the in—servicefacilities. In this way, each irrigation water user would be payingfor an equitable share of the CV? services expected to be madeavailable during the 5—year period.

?ublic hearings on the draft CV? water ratesetting policy were held atseveral locations, and a formal comment period was established for thepurpose of obtaining input on the draft policy from CV? water users,various governmental entities, special interest groups and the generalpublic. Many comments were received and most of them suggested thatmodifications to the proposed policy were needed or that otherratesetting options should be considered.

By memorandum dated April 10, 1981, the Office of the InspectorGeneral stated that the draft ratesetting policy resolved some, butnot all, of their audit concerns. The unresolved issues have remainedas such in the Inspector General’s semiannual report on outstandingissues.

The draft 1981 ratesetting policy was further impacted by theenactment of the Reclamation Reform Act of 1982, which includedseveral financial and repayment requirements that were neitherprovided for, nor envisioned, in the draft proposal.

1984 — ?resent

In response to the above described factors, the draft 1981 ratesettingpolicy was reanalyzed1 proposed methodologies were revised to reflectthe •public comments previously received, principles and requirementsof the Reclamation Reform Act of 1982 (RRA) were incorporated andalternative ratesetting methods were developed. The resultingratesetting proposal provided several optional methods and wasreleased for public review and comment in April 1984. In May 1984,public workshops were presented in three different locations todiscuss the ratesetting methods and to answer questions. Subsequently,three formal public hearings were held to receive testimony andcomments and all comments and statements received at the publichearings were recorded for use in finalizing the ratesetting approval.

The formal comment period was extended twice because of the interestand efforts demonstrated by the persons reviewing the ratesettingproposals. On September 21, 1984, the comment period officiallyclosed and the internal finalization of the ratesetting policy began.

The CV? water users, governmental entities, special interest groupsand other interested parties provided extensive comments on theratesetting options included in the April 1984 proposal. In responseto these comments, the Bureau developed and evaluated severaladditional ratesetting methodologies. The number of optional CV?ratesetting methods was eventually reduced to the six considered the

6

most viable. After water rates were calculated under each of thesesix ratesetting methods, each of the methods received extensive reviewand analysis at both the Regional and Washingtdn levels.

In the final stages •of these evaluations, the Congress enacted ?ublicLaw 99—546. Section 106 of that ?ublic Law mandated the determinationof individual contractor repayment and/or deficit balances andprecluded the adoption of CV? ratesetting options previously underconsideration that would have pooled operation and maintenancedeficits CV?—wide for repayment. Additionally, this ?ublic Lawprovided that interest would be calculated on operation andmaintenance deficits accruing on or after October 1, 1985.

On May 4, 1987, the Assistant Secretary of the Interior for Water andScience proposed the Component with Individual Contractor DeficitsRatesetting Method as the new irrigation ratesetting policy for theCV?. Adoption of the proposed policy was subject to the results of a60 day public review and comment period with the policy to becomefinal in 120 calendar days unless the public comments justifiedreconsideration of the proposed policy.

Informal workshops to further explain the proposed ratesetting policyand the applicable supporting calculations were held on June 1 and 4,1987 and a public hearing was held on June 16, 1987. A total of 397public comments were received which were determined to be applicableto various provisions of the proposed ratesetting policy or applicableReclamation laws. All comments applicable to the proposed ratesettingpolicy were reviewed, summarized and collated into a document entitled“Summary of Irrigation Ratesetting ?olicy ?ublic Review Comments andResponses”. This document summarizes the 397 public review commentsinto 91 general comments and provides responses to each of thegeneralized comments.

After a thorough review of the comments, it was determined that theexpressed concerns were not significant enough. to justifyreconsideration or amendment of the proposed ratesetting policy. Acopy of the “Summary of Irrigation Ratesetting ?olicy Public ReviewComments and Responses” will be sent to each of the participants inthe public review process upon formal approval of the proposedratesetting policy.

As of March 1, 1988, the Component with Individual Contractor DeficitsRatesetting Method is in the offices of the Secretary of the Interiorfor adoption as the irrigation ratesetting policy for the CV?.

7

CV? COST ALLOCATION ?ROCEDURES

The cost allocation of the CV? Dlant—in—service investment is reviewedand updated annually to reflect: any additions to, or retirementsfrom, the plant—in—service investment account; the adjustment to thehistoric data base to reflect another year’s actual CV? water andpower deliveries; and any changes in the water and power deliveriesprojected to be made during the remainder of the 50—year repaymentperiod (based on the in—service date of the last major facility). Ageneral description of the plant—in—service investment cost allocationprocess is detailed below.

Plant—in—service investment costs are first allocated among theauthorized CV? purposes (e.g., flood control, navigation, water supplyand power). Costs allocated to the water supply purpose ae thensuballocated among various functions, one of which is irrigation,based on each function’s proportionate share of the total of the past,present and future CV? water deliveries. Similarly, CV? hydroelectricpower generation and transmission costs are suballocated betweencommercial sales and CV? project use functions based on eachfunction’s share of the total past, present and future CV? power uses.Costs allocated to the CVP project use power function are then furthersuballocated among various CV? water supply functions (includingirrigation) based on each function’s share of the total of past,present and future CV? project use power uses.

Actual annual operating expenses are allocated at the close of eachfiscal year. At year end, operation, maintenance and replacementcosts incurred by the CV? during the previous 12 months are allocatedamong the authorized project purposes and then suballocated within thewater supply and power functions. However, instead of allocatingannual operating costs on the basis of past, present and future dataas described above, the allocation is based on each function’s shareof the CVP water and power deliveries made during that year.

The plant—in—service and operation expense allocations are used todetermine the water supply and project use power costs allocated tothe irrigation and municipal and industrial functions and detail thecosts to be recovered from these two functions through the waterservice rates.

j8

RATESETING POLICY DESCRIPTION

Legal and ?olicy Considerations

The policy responds to the concerns of the Office of the InspectorGeneral. That office has reviewed the proposed policy (as well asvarious other ratesetting options) and has found that the Componentwith Individual Contractor Deficits Ratesetting Method will satisfythat office’s recommendations contained in the CV? audit reports ofJanuary 1978 and September 1979 with respect to the repayment of CV?costs allocated to the irrigation function.

The formulation of the ratesetting policy is a Federal actionqualified for a categorical exclusion from formal compliance with theNational Environmental Policy Act of 1969, pursuant to 516 DM 6,Appendix 9.4.D(5).

The ratesetting policy anticipates that only a limited amount of powerrevenue assistance will be required to repay the irrigation functionof the CV? by the end of the year 2030.

The Office of the Solicitor has reviewed the ratesetting policy andfound it to be legally sufficient with respect to Reclamation Law,including Sections 105 and 106 of ?ublic. Law 99—546.

Policy Provisions

The provisions of the Component with Individual Contractor DeficitsRatesetting Method include the following:

— The policy will recover the United States’ investment, includingany operation and maintenance deficts applicable to CV? contracts,within a definite 50—year repayment period terminating in year 2030,as required by Section 105 of ?ublic Law 99—546. This block repaymentmethod supercedes the previous “rolling repayment” method used forcomputing CV? water rates.

— New 50—year repayment periods will be established for thecapital cost of major rehabilitations and new facilities added to theCV?. All other construction and rehabilitation costs affectingexisting facilities will fall within the initial 50—year repaymentperiod ending in year 2030.

— Individual contractor accounting is maintained for repaymentaccountability, and O&Mdeficits are accumulated for and will berepaid by each contractor under the terms of each new or amendedcontract, as required by Section 106 of ?ublic Law 99—546.

9

— The policy honors the provisions of existing CV? water servicecontracts and requires the application of cost—of—service water ratesfor all new and renewed water service contracts and amended contractsdescribed in section 203(a)(2) of the RRA. The policy also providesfor the automatic adjustment of cost—of—service water rates on anannual basis. This is in accordance with Section 105 of Public Law99—546.

— The rate computation procedures are based on cost—of—servicewith capital costs amortized over a 50—year period. Water rates arebased on the “pooled and averaged costs” approach in accordance withthe “operationally and financially integrated project” conceptinitially established by Congress and reaffirmed each time the CV? wasreauthorized to include a new unit.

— There are no minimum rates (such as the $3.50 previously used inthe CV?). Cost—of—service rates are used unless the contractor’sability to pay is limited by a documented payment capacity limitation(payment capacity limitations are discussed subsequently). Thecost—of—service rates reflect credits for past capital payments andmiscellaneous receipts.

— The cost—of—service water rates apply to all types of waterwithin the CV?, including Class 1, Class 2 and the storage and/orconveyance of non—project water in CV? facilities. All CV? irrigationcost—of—service and full cost pricing determinations are made inaccordance with the ratesetting policy.

— The cost—of—service water rates are composed of a uniqueassembly of cost components frequently referred to as “cost pools.”Each contractor pays a water service rate encompassing a proportionateshare of the cost pools associated with the specific service requiredto provide that contractor with CVP water. A description of thevarious cost pools involved is presented subsequently.

— All of the costs of those CV? facilities in—service are included.in the irrigation water rates. The cost of facilities not being fullyutilized (unused capacity) are only deferred if Congress hasspecifically authorized the deferral of these costs.

— The ratesetting policy continues to recognize the ability to payconcept that has been used for a number of years in irrigation watercontracting. Under this cdncept, the actual charge to the individualcontractor will be the lesser of the cost—of—service, or 100 percentof the individual contractor s payment capacity. At a minimum,however, the water rate charged will cover the operation andmaintenance costs applicable to the delivery of water to thecontractor. The difference between the individual contractor’scost—of—service water rates and ability to pay will be assigned to thepower function for repayment.

10

Where there is a question about the individual contractor’sability to pay, the contractor can prepare, or have prepared at his

-expense, an acceptable payment capacity analysis. The contractorwill be responsible for the Bureau’s costs in reviewing and approvingthe analysis.

— All new or amended contracts will contain provisions forredetermination and adjust of contractor’s ability to pay at 5—yearintervals, pursuant to Section 105 of ?ublic Law 99—546. As aminimum, the water rate will cover the annual 0&M costs applicable towater delivery if payment capacity is employed as the ratesettingcriteria.

— Interest will be charged on all O&M deficits incurred on orafter October 1, 1985, pursuant to Section 106 of Public Law 99—546.Transactions (either net repayment or deficits) prior to that datewill not be considered in determining the interest bearing deficitamount although subsequent transactions will impact the interestbearing deficit and the applicable interest calculations.

— The rate of interest to be applied to the O&Mdeficits will bedetermined annually by the Departmentof the Treasury in accordancewith the criteria provided in Public Law 99—546. The rate will beapplied using compound interest procedures to any contractor’s deficitaccruing or accumulating on or after October 1, 1985.

— The costs of isolated or out—of—basin facilities are the directrepayment responsibility of the contractor (or group oE contractors)who benefit from the services provided by the facilities.Accordingly, repayment for operation of isolated or out—of—basinfacilities, such as those associated with the San Felipe Unit locatedwest of the Gabilan Mountain Range near Monterey Bay, will not beshared by the other CVP contractors, but will be paid for by theout—of—basin contractors.

11

COMPONENTWITH INDIVIDUAL CONTRACTORDEFICITS

RATESETTING METHOD

Description of Ratesetting Method

The Component with Individual Contractor Deficits Ratesetting Methodprovides for a block repayment procedure with 50 years to repay all ofthe costs included in that block of costs. This method abandons thehistoric procedure of extending the repayment period of the entire CVPeach time a new facility is added to the CVP (this was known as therolling repayment or rolling 50 procedure).

While it is expected that construction will continue for some time onthe CV?, the initial construction period for repayment purposes iscalculated from the date the most recently completed major CVPfacility (the New Melones Dam and Reservoir) was included as a part ofthe CV?. Therefore, the plant—in—service costs at the end of fiscalyear 1980 must be repaid within 50 years, or by the end of fiscal year2030: This period conforms with the time frame specified by PublicLaw 99—546. New repayment periods will be established for the capitalcosts of major rehabilitations and new facilities or units added tothe CV?. However, all other construction costs affecting existingfacilities will fall within this initial 50—year repayment period.

The Component with Individual Contractor Deficits Ratesetting Methodincludes individual contractor repayment or deficit balances in thedetermination of contractor water rates. The terms “deficit” or“operation and maintenance deficit” refer to the accumulation ofannual operation and maintenance costs in excess of the annual waterservice payments made under a contract with a particular entity. Inthe aggregate, the irrigation account of the CV? has a positivebalance, although that balance has been eroded during years in whichannual operation and maintenance deficits have occurred. The terms“repayment” or “net repayment” refer to the accumulation of the annualwater service payments in excess of that applied towards operation andmaintenance expenses. The revenues in excess of operation andmaintenance expenses is accumulated and applied to reduce the balanceof outstanding construction costs.

Under the Component with Individual Contractor Deficits RatesettingMethod, the individual contractor irrigation water rates depend uponthe extent and type of services provided by the Bureau of Reclamation(Bureau). The water rate applicable to each contractor consists of anumber of cost components (or cost pools) which correspond to thewater services provided by the Bureau. Each contractor’s water rateconsists of a composite of pooled CVP—wide rates, pooled service arearates, and individual rates to recover costs specific to certaincontractors.

12

The cost pooling approach has been used in determining CV? irrigationwater rates since the 1940’s in accordance with the language of thelegislation authorizing the CV.? and perpetuated by subsequentlegislation which provides for the continuation of the operational andfinancial integration of the CV?.

There are seven potential cost components that are totaled todetermine a contractors s irrigation water rate under the Componentwith Individual Contractor Deficits Ratesetting Method. These costcomponents are: water marketing, storage, conveyance, conveyancepumping, San Luis Drain, direct pumping and adjustment for historicindividual contractor repayment or deficit balances. The storage,conveyance, conveyance pumping, San Luis Drain and direct pumpingcomponents include rates to recover both operation and maintenance(including replacements) expenses and capital costs.

Description of each of the seven potential costs components that ~‘retotaled to determine a contractor’s irrigation water rate under theComponent with Individual Contractor Deficits Ratesetting Methodfollow:

1. Water Marketing — The water marketing cost component reflectsthe annual operating expenses of selling (marketing) CV? water. Theannual water marketing expenses are pooled CV?—wide and allocated toall paid water for the fiscal year involved.

Paid water includes all CV? supplies to be delivered to thelong—termcontractors. It excludes water rights, mitigation andother such water deliveries. Long—term contractors are the CV?contractors who already have long—term water service contracts andothers who are expected to continue to receive CV? water on a regularbasis pursuant to annual or long—term contracts.

2. Storage — The storage operation and maintenance expensecomponent includes all of the expenses classified as storage,including a pro rata share of the annual administrative and generalexpense. Storage operation and maintenance expenses are pooledCVP—wide and allocated to all contractors benefitting from CV? storageby calculating a per acre—foot rate using the total paid water storedin facilities operated and maintained by the Bureau during the fiscalyear involved.

Storage capital costs are pooled CV?—wide and allocated to allcontractors benefitting from CV? storage by calculating a peracre—foot rate using the historic and projected long—term contractdeliveries applicable to the 50—year repayment period commencing in1980.

The storage component also includes the costs of the Folsom PumpingPlant, the San Luis Pumping—Generator facility and the Columbia Mowry

13

System. These pumping facilities are included in storage as they areutilized to provide services which were eliminated by construction ofthe applicable storage facilities or because their operations moreclosely reflect a storage operation than a pumping operation.

3. Conveyance — The conveyance operation and maintenance expensecomponent includes all of the expenses classified as conveyanceincluding a pro rata share of the annual administrative and generalexpense. Conveyance operation and maintenance expenses are pooledCVP—wide and allocated to all contractors using CVP conveyance bycalculating a per acre—foot rate using the total paid water to betransported through conveyance facilities operated and maintained bythe Bureau for the year involved.

Conveyance capital costs are pooled CVP—wide and allocated to allcontractors benefitting from CV? conveyance service by calculating a peracre—foot rate using the historic and projected long—term contractdeliveries applicable to the 50—year repayment period commencing in 1980.

4. Conveyance Pumping — The conveyance pumping component includesall of the costs of the Corning, Tracy and Dos Amigos Pumping Plantsand the O’Neill Pumping—Generator facility.

The conveyance pumping operation and maintenance expenses includea pro ra~a share of the annual administrative and general expense andare allocated to those contractors receiving conveyance pump2.ngservices by using a CVP—wide pooled rate per kWh with ~he differencein allocated costs per acre—foot caused by the varying liftrequirements of the pumping plants. The greater the lift requirement,the more energy required to pump each acre—foot of water and the morepumping operation and maintenance expenses allocated to the applicableindividual contractor. Separate rates are calculated for each of thepumping plants involved, and the rates for each of the pumpingfacilities used by a contractor are totaled to determine thatcontractor’s total conveyance pumping operation and maintenance rate.

Conveyance pumping capital costs for each of the four conveyancepumping facilites are allocated to all contractors benefitting fromCV? conveyance pumping by calculating a per acre—foot rate for eachfacility using the historic and projected long—term contractdeliveries through each facility during the 50—year repayment periodcommencing in 1980. The rates for each of the pumping plants used byan individual contractor are totaled to determine each contractor’sapplicable conveyance pumping capital rate.

A portion of the Tracy Pumping Plant’s capital costs and operationand maintenance expenses are assigned to the Friant-Kern/Madera Canalcontractors on the basis of the historic and projected deliveries tothe Delta Mendota exchange contractors applicable to the 50—year repaymentperiod. These costs and expenses are then allocated among the Friant—Kern!Madera Canal contractors on the basis of their historic and projectedClass 1 water deliveries during the 50—year repayment period.

14

5. San Luis Drain — The San Luis Drain operation and maintenanceexpense component incorporates all San Luis Drain expenses including apro rata share of the annual administrative and general expense. TheSan Luis Drain operation and maintenance expenses are pooled andallocated to the three contractors currently entitled to San Luisdrainage service (the Panoche, San Luis and Westlands Water Districts)on the basis of each contractor’s San Luis Canal deliveries for theyear involved.

San Luis Drain capital costs are allocated •to the three contractorscurrently entitled to San Luis drainage service on the ratio of eachcontractor’s historic and projected long—term San Luis Canaldeliveries applicable to the 50—year repayment period to the total ofall, such deliveries.

6. Direct Pumping — The direct pumping component includes all ofthe costs applicable to ~.hevarious canalside relift pumping ~lants~iid t e other CV? pumping plants not operated by the Bureau includingthose serving the Bella Vista WD (Wintu pumping plant), Contra CostaWD (Contra Costa, Ignacio, and Clayton pumping plants), Westlands WD(Pl~asant Valley pumping plant) and tr’e Cross Valley Contractors(State Delta pumping plant — project use energy costs only).

All of the facilities included in the direct pumping component areoperated and maintained at no cost to the Bureau with the exception ofthe cost of the project use energy provided. The project use energycosts are isolated and charged directly to the individual contractors~~ uC Lfle pumping-services

.

The CV? capital costs applicable to the direct pumping facilities isalso charged directly to the individual contractor receiving benefitof the pumping service. Per acre—foot rates are determined for thesecosts by distributing the capital costs to the historic and projectedlong—term contract deliveries applicable to the 50—year repaymentperiod.

7. Adjustment for Historic Individual Contractor Repayment orDeficit Balances — This component consists of the net result of thecomparison of each contractor’s annual water payments with theirallocated share of the operation and maintenance expenses for thatyear. This component reflects the calculation of individualcontractor balances starting at the time each long—term contractorfirst started taking CV? water. The balances in this componentindicate the result of individual contractor accounting.

Prior to the enactment of Public Law 99—546, interest was not chargedon operation and maintenance de~ficits. Accumulated annual paymentswere netted against accumulated annual operation and maintenancecharges in order to establish each contractor’s net repayment ordeficit financial position through September 30, 1985. If thecontractor’s total payments exceeded the allocated operation and

15

maintenance expenses through September 30, 1985, the net differencewas considered repayment and was applied as a credit in determiningthe contractor’s water service rate. This credit is still applied insubsequent years to the extent that any deficits incurred afterSeptember 30, 1985 have been repaid. If the contractor’s allocatedshare of the operation and maintenance expenses exceeded the paymentsthrough September 30, 1985, the contractor had an operation andmaintenance deficit which increased the contractor’s repaymentobligation and computed water rate.

Passage of Public Law 99—546 required the calculation of interest onall operation and maintenance deficits accruing on or after October 1,1985. This necessiated the development and maintenance of individualcontractor ledgers showing the operation and maintenance deficit orrepayment balance accrued as of September 30, 1985, and the annualinterest bearing operation and maintenance deficits (includinginterest) incurred thereafter. An annual accounting of financialoperations will be made by contractor showing the result of that yearsactivities. The annual accounting of operation and maintenancedeficits by contractor will include interest accruing on a compoundbasis at rates determined in accordance with the interest ratecriteria contained in Public Law 99—546. Annual interest calculationsare simplified by using a composite interest rate method whichreflects the weighted average of the various annual contractordeficits and applicable interest rates.

The Region, has decided to accept, and encourage, voluntary paymentsfrom individual contractors to avoid operation and maintenancedeficits and has developed implementing procedures for accepting,handling and applying voluntary payments. These procedures allow the.contractors to avoid incurring interest on operation and maintenancedeficits so long as voluntary payments are made in accordance with theRegion’s established voluntary payment procedures.

The Component with Individual Contractor Deficits Ratesetting Methodapplies all annual water revenues by individual contractor in thefollowing priority:

— Current operation and maintenance expenses

— Interest expenses

— Interest—bearing operation and maintenance deficits

— Non—interest bearing operation and maintenance deficits

— Capital repayment

16

WATERRATE CALCULATIONS

Using the methods and procedures previously described, water rates foreach component and CVP long—term contractor are calculated annually.Pending final approval, the Component with Individual ContractorDeficits Ratesetting Method has been used on an interim basis tocalculate individual contractor CVP water rates for the 1984, 1985,1986, 1987 and 1988 water years.

Upon final approval, the Component with Individual Contractor DeficitsRatesetting Method will be used to calculate all CVP irrigationcost—of—service and RRA full—cost water rates. These ratedeterminations include provisions for annual operation and maintenanceexpenses, amortized rates for the applicable construction costs andrates to recover any accumulated O&Mdeficits (including interestpursuant to Section 106 of Public Law 99—546) and adjustments forindividual contractor repayments to date. The full—cost rate alsoincludes an interest charge on unpaid capital costs in accordance withthe RRA.

A copy of the schedule showing the 1988 Full O&M, Cost—of—Service andFull Cost water rates by CV? contractor is attached.

17

0.0

-t

0

6,

‘V0 0.0

o C4P— ~4•4

-U —F-F- 049

• @404.4

‘C

• . .4-...

— a.— Is 4•s••

a48

I.0

0.47.1

ac6

00-9

U

66—.40

0

—486

0N~1

COO60

4UU..3

0

o4.4 Ps—

49

4.4—4~ ‘0

F,. @.

—a.F- 08’-

4- 4-4-

a. a...• . .

SO

C06

6C4818

•0 48

=

.48UU

486—uo a.00483

C.48 0 61‘.1S I6.4

.4

—. 4’~ 0.- 4- 0 e~ 0 ~ ‘V ~., .a— ‘S 4-’C00Is4.40

. . . . . . . . . .00—00—00 ~4.4

4.4 —

5- a.4-

‘0

.0 4- @4 4-0 ‘C F ‘00’S

... ~4~0’= 49-,— ~0 0 ~9

00 @400 a. 00 a. a.

5- 49 4-04e~00.VS0F- 8’-

.4,

— — F-Ps’S r=’SPsP.-P-P.P-

U.

C48.4

648

6

a.

00

U

64’

U

0.

6

0U6 018 020.48

.4—

U—

0. 6ID

66480.4 a.0

.4

8-48U

.4

0

48U4

48.4

0 48003c., —C -~ —048 00—6.4 — Z—~ 0~-.4 ‘0048.4 .— .4 .4

uI~ • .4——= ~: ~

= 000~ -~S SU 0V 7.3 ~.

.68—8- 48—~ 48,37.C 18 48 U I. 0 .48 — —48 .~ .~ .~ .~ C •.J — C 8.•CCCCO 0484.~ .~ .~ ~ ~ m o

18

_ a.• ‘U

4.. 00 —4.4 6,

=U

00

.4o a.

z.40

6,

.4C

.4818

a

60C.,

18a.

4

4..04...

i6.

66U

I.U

a.U

4.4

6U

4

C0

U.4

66

6,.4C.)•6

.4hia..4hi

hiCJM— 0~..4.4.4hi@.

zo .~o ~m—a. 0.- 0— a..~ z

.4

• 0.4

zu-3—..3 0

U=

.40U

-z~10a.0

— U0•!

66048u.4

.40

0a.

6

0

48

C0

C.35..U.

U6a.

-3

— ‘C—5.-00.4~ (‘4

p.‘.4

za.0.0

.40

-a —

00•0U

.48 6606 0A.

~~3j

U,

U,s. OF- 49s.OF-a.a.5-@405-Ps0’C’C’V4-49’04-’C’C0~5-O’O5-005-5-5-5-5-N

4-O’U0O’C@4’S00’SF-49’U490’UN’U’V4-N’CO’S~~’4’C

49

— ~ o. —‘So COO e-’0@4@4000•@40 —o 00

‘U 5-5-5- N N 049 N C 5-F- 05-49 N 05- 0 04-5-49.0 Is 4949Ca.4- 05-.UN5-Is’C5-5-5- 5-5-N’U’SO@4F-4-PsPs49’U490U’C’S4-4-490a.F-O’C~ —

• ... . . p . • • P ~ 4 • P P P • • • P • (~000F- 0a. 0.00 000 00Psa.’S0000Ps0 @40 00

F-S. 5-5- ..P4-...0 Ps ‘U5- @4 .P5- N -05-4- -,05-49.. F-Ca. Ps @4 Is 04-’U 4-5-Is 495-a. F- 5-5-5-5-5-FE.....~O49’0’C’U’U’C0Is@4’S’C ‘C’0-P4-F- ..V4-Is4-V9494.4Is’VV9.F-’C4949

• 4•~~ • P P • P P • • • • • 4 P • P P . . .4- 4-4-4-4-4-4- 4-4- 4-N4- 4-4-4- 4-4-4-4-4-4-4-4-4-4-4-4- 4-4- 4-4-

@45-5-5-a. @4 @40404 @45-a. @45-a. @4@45-a. @4 @45-a. @404 @4 @4 @4 @4 a. @4 18 a. @45-a. @45-04 a. 5-5-5-5-5-PsPsPsPsPsF-F-IsPs~Is’SF-PF-F-F-F-IsPsIs’SIsPs Is8”IsIsIs .~.IsF-....Is• P •P• 4 • • ~ ... ... P P •eP

6.

S ‘.1 • 0.400w U. 6

6 6 0U. U.4818 .6 6 U6 5.4 S 4— 648048 18 6 6 6 UU 0 480048 A ~U — US 6 •C• 2~I—— U • A 048 4806 .4 ~ 48ZshihiO 48 02 .4 .4:u~ —U. .~IJ1— 026 486 0 648U,U 48648 40.4’ UZ 8.0 .J 0 .41 •4844Z.4 486 6.— 4~CJ4o • U • ~18. .4s— — .4.4.46.-a-aU C ZU ZU—A I I— 6 0h3.d a cm .-a 8 046. 18 •~ 45- 4 ID 8-6 ~ rJ—a 0 —— 4h1 ~ I

.6. ...*. ..~JO — 040.?J • U. 048 •4’ 06.0— 6 —— . •s 4848— 480 •ID48486 •P 006648 .tD1U48000U —— C48U.~UU48484848 •OU48IDUUO mU484U48hiSC0.- •480— 0.UU61818A—0U48~~.MuC IDEUUC ID43.M 0

•486480~~484.466C48 U666018ID48—C48 .C.CAA000

644848486660048066 1818 ID———8.64 4486. UUUUUUU0C00CO0C6.U.6.U.6.6.~~

.3 0.

— • 0o 9 U

48 U hi— U CI U. — ‘4— 8- 48 US U .C -63 •AZCJ 0

0* I6.’4Z 180.463

-UO 0048U. C -. U -ID •..~6C •6 48

— I ID 0 C U • ‘4U~. 4 48U.~..8.48 .4C 186—8. IDEU18 186.48488.48

= ~ ~ ~.3

19

048

180‘UON

.0

U, 4’

z0

18U.

.4C

‘U0

.4a

U0U

186.

.4

4-CN

4

4-0N

00

6.

48

U4

6484.U

U.4

648

43a048

.4

6

181.4U4

.4hI4.

a’hia-

614

— 0~. .40.418304WI.....

z cn 40 3.4.‘6. 0b 0 F-U.4 r

• Ua-.4.4—~ 0050 a-S U .3 U— .14

-0.4A.Zh.

(JO (JOzU.3—-JO’-000U. .4

Uz

I-In0U-a-30U.

Cz4

a.IS U

CUhi~

486018

.U a’

5.0

1818.

0 0 .tPsN49.t -w5-0 ‘C~~O-t’.4.~-P’U0 0 (‘404949 ‘.4st0~a. 0P.... • P P P P P P P PP P P P P P P P P P PPP — P P PP P P PP P P

oo—o~—o —o a04 004 —O—00O—0Oa.——O——~0O00—0 0——

~04~O 0 ‘C~’UF-00’C5-(’~5-5-@44-Ps’.~(’44949F- ‘c~ ~ 4949’U...’...49 .35-Ps @4F-494PiV’404 0 CF-(’4F-0 ‘U

0’C@4 0’U4-’C4900’U0t404’U0’0049Ps494-—Ps.-Is 0• P P P P PP P PP P. P • P PP P P P P P P P PP P P P P P

00040’C@40a.0 484490 OF- 000400000000400.00a.00 00040 00

F-Ps’C~5-.C,C..005-0@45-49495-5-’U4904’C4-~OO@4’C’U@4 (‘40’~@44-(’4 4904 (‘45-04-‘C4-49’C..Ps0’C0’C .PsIs.*....’C’UP’U49F- 494949PsF-W9.t0Ps49F-F-Is~C~C~0P’4F-’CPPP P P P P~P P •P PP • PPPP P PP — P P P

4-4-4-4- 4-4.4~4-4- 4-4.44- 4-4- 4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4- 4-4-

@4 @4 @4 @45-04 04 04 @4 @45- @4 04 @45-04 @45-5- 04 @4 @4 @4 @4 040404 @4 @4 a. 04 @4 a. 04 @4 04 @4 @4 @404 @4 .~. 04 ~Is F- F- Is — F- F- Ps Is F- — 9”. Is Is — Is Is — — Is F- Is Is Is F- Is Is Is F- Is F- Is Is Is F- Is IsIsF-IsIsIs”..PP P • ~ p • pp p p p p P P P P P P P P P P P P P P P P P

.4 CC..I

348 • (JO6 ..J (J 18 ~

0 C 2 6 .4 0 18

486 Cl ‘U (J 8. 68.hi — 636 Ca C48 0 8.8..4• . — a — • 3 68. 00 —8. Z U 48 48 ‘dID. ~0 ——hi ~ .4 45 UZ-I U .40 6.0 —~ I ‘~ —C s 2 d — 6 8-~ — Ehi ‘US 48 0 ~ .4C ~J0 a 6 . S .~• 1 C C.48 C 8. 18 8-(J— •Z Jhi(a 48 .48 3 6 018 CU..d a —u uo~— ‘a or5- 20A2 U. U 184.U.5 - 5~ZC.3a-.3.C 00 C hi 018d 8.U. 0 1 •C0. C0’U.4 hi4 ..hi 0 CO —— 18hi ~48 4848’ - ChiU .00U18U8.U.(aS— 8.4848 6 .A6 6C50 Pg .~CC48C~8.Z68. •4848’U PU. hi....4U hi— iaa.o. .U.UOa-A.048C18’U48.CU.C1806048 guam USU PP .CU.8. 8.— C0.0.in~ — 2—U 48.u4848018480U~ —oCguC~018———Uu- JU 15U 6181848—2~O-a 06 ~U..3 8-U666CCS2~C6480 U 6’JU iDhi—Uhi~.O48 4848484848600 UE4848UU48~0000184818U~~18ID—..664848UU484’O0

U. ZZZZ0ZZZZZZZ0ZZZZ004.4.A.4.4.4..4.4.4.45~.4.4

20

0U

180‘U

ID 4-

U 0a’

IaC

18U.

UC

‘U18

U

U0

Ca

186.

a

4-04.4

.4

4-0(.4

00U.

486U.466U.U

a.4

6U

482C0

48U66

a-

hi.4(a4

.4hia.U,hia-

hi.4US— 0~. 50S hi @4UJ a-—

00 3

U. 0a- 0 -5 U..4 0CO a--aS

.3.4•05

ZU.a-

Pa—.-30U.0 00U..3ca

I

I.-U,0(a

-3.30U.

0I.4

5. 48

0’4

U8.018

(Jul

I

0

0ID.

‘000 S...49F-4-4904.’(5-0’U’U 494-05-5-F-Pd ‘0 .00.-. 0 @4...Q.F-4-04-04a.~.IsIsPs a’ 4-4-@449Ps’U 0

PPPPP P P P P P P P P P P P P P P P P PP P00004 040000—0 0040-.

.0p49 4-4.45-.48.04’0Is@4Is05-’U..a’C...a.0F-S.5-49PsPs 04

(‘44.48 ~@E4- 4-a.~4-Ps~a..0’CIs4-OIs~p49@4..t0PPPPPPP P P P P

49a.F-@4004 040000 Ps0000040 0Ps00

49 4.404 F- 0495- a 04-— 00 05-0 (‘4 — Is 0 4905-5-4- .0 04-O@444F-’UPs~Is49Is4949F-’U~.*~.O.O49..tF- .-—.0.t.0Is

PP P P P P P P P P P P’PP~PP..p P P P P14-4-4-4-4- 4-4-4-4-4-4-4- 4-4-4-4-4-4-4- 4-4-4-4-

04045-a. @404040404045-0404040404 0~ 045-5-04 04 04 @4Pp F-F- F-F- ...F-PsPsIsIs F-Is F-IsF-IsIsIsF- ~F-Is F-Is

PPPP P P p P P P P P P P P PPP P P P P P P

o.o48 0~ 0 (J U.48 U 0 CJZ6C C PP U

6 6. CU CO 48 U C0 .4 6 — ‘a’a C ‘U— —S ‘a 6 48 65 18 s48U C .4 U —

6U0 66A.U 18 .J 1848 0 SC 0~ ~Cfl 18 Z P ‘U8. 5 ‘a S 6’a 6 2 II 6(a U. 4 P U ‘aa- COCOC I U 48C 48 Ca — 48 U. P 6(JS~0 —(a C6 6Z6 3C S CO 48 U

(a CaU~ - —uCaa- 6 • CC6O U.-a’a65- == •—U.3 •UCCa48hu~ ~ -z eU. PP ‘UqZ’UC CO SSU. I~ U ‘UZSS C • 6648 6048—U —— 48 — -l.a (a— —~6 0.0—618U~ C6181848U P48648C48— •@484855.’UU18.4848..4CUU5.o...e...48.— U US~Q~ C—C •‘U~S 0~(aA U’UU C 2U 4848648U.4848UOUSUSCC6 061848• 181848g.4~181.Z~O184848g48gg....p.o 118186.

0U

‘U45 ‘U

.0‘45U, A.

z-a0

18U.

aC

‘U18

UC

0U

18U.

.4

4-04.4

.4

4-0(‘4

5-5-

aaU.

486U.4648

A.

a48S

6a42

C0

48a66

a-

hi.4(a.4.4hiA.

U,hia-

hi.4us— 018. .40~ hi @4

Z 52.40 35

U. 0a- 0 -5 U..4 =(.7 I’. .4 .4

C5200SO a-S (a ..Z(a— .3.4

A.18-4 Z(.30CCzu

-3—.J 0 U.

(az

a-PA0U

-3-3

(‘P

0z.4

04 04- —

04 (‘4

.10

4-

49 IsIs 04

(‘9 4-

a. 05

‘P18 0OU

hi~486048urn

r-a0

186.

I.

- 5-5-‘0 —

a.

5-5-

5--S

C

0C 00— 48248 186 S~hi0 .~ U

C Ubi— 2(52U ID C48 C-.O0 1848hi

— 6 .4548 1l~4.S XCQ0 ID—

— 2uafl18 (1

(a z

6

5 648

6 .CUS

.0 4—u48 63U

U.

‘71

4 @4 04-0%.’0’0 C 00044-4-49.45-Pd—— 04 (‘4 —O’P’—@40 C 04-0F-’Ps’04’4

p P P P P P P P P P P P P P P P P P0 49 .4’ 0(’40 0040Ps04-Ps0@449 F-Pd .E ‘0’ (‘449Pd PdPP’PPdPdPd49PdPdPd.C Pd’0

‘0 0 ‘0 @44905-@4O—(’4040’C4-a.-.5-@449.4. 04 4- F-4-0~tS’04904—4-PsPs(’4PdPs

p P P P P P P P P P P P P P P P P P

04 Pd Pd ~a.P4 ~ Pd.P’ —e— 4- .4. Pd4-C4 P’4PdPdPdPd’EPdPdf44- 4449

‘C Ps 49.4. 49 0(’4@4~00’004

4-’0Ps..t49..P’0’0P P P P PP P P P P P P P P P P P P‘0 0 ‘0 @44904 0Pda.0404-.@40404- 04Pd

@4 04 U, 05a.5-a.04@404Is@40404Pd5-@4’0— (‘4 @4’004—a.004a.050a.04a.-’050

P P P P P P P • P PP•PPPPPP— 4- Pd .4.49.4. .t49’a.P.149.t.t.t49 .4.49

(a~— UCS

048

484848

U—U

300

CO

UCO.EUW0Uu0CaU

64856CSOC(J0U

UUC 48C3 U486 18(JuhiU. —u

~s 01— U. CC —C~ ~ C— ~Uhi 3!~ ~ — ~.66 ‘U C— 6048 0~ C; ‘U.4~(JS ECU. U, 18.00E1’U—E

48 U(a 48 C 48.0336. C5. 8348 3 18 — C — C C ‘U hi 48 .45 CO 6 48.0 48 hiU 6183C48C6 48—U.C4848 0 0 0 48 18 — — 0 48 — 48 U. 6 — 48 48.0’aCauu00CO0hi245.JzO.4g-3

48a-

22

PP

U,U

180‘U

18 49

‘4 .4PA A.

.4

4-CPd

.4

4-04,4

‘a0

186.

.4C

‘U18

UC

ph480

Ca

18U.

006.

486U.4648A.

48

48.4

648

483

C0

48.4

66

a-

hi.4P..’.48.4hiA.

a’hia-

hi.4u.4— U,~ .40.4 hi 04hia-—

Z 02.4o 3o.-.U. 01-0-5 U..4 rCO IP ‘a .4—moo‘0 a-

Ca -.7 (.7-.3.40.4U. a-

-a z000

z Ca-3—.40 3P0 006. .4

0z

a-00(4-3-30U.

C

.4

— 480U

4, 3486048urn

0

18U.

5-5-5-5-

5-5-5-5-

5-5-5-5-

5-5-5-5-

a-

a-.4—. 2

4 CC 1848 —0u iiu

18.01—I— hi 0pi 5-5- 6 hi18

—EU U.hiU 60480 UU — 4 U U—(4 CO 0 PA0U.

5-

5-

5-

a-U.48~

48 U.ID

C——48

a-EC0~j

OCO48

PA

48

C

6 U0 3(a rn.4U U6 50a —CaC C0 0.45(J U5- .4548U. 486S 48Ca— 6

— (.36— Eci 64848 E~6. 48(4

Ca

‘C’C@449 5- 0494-04 ‘C —0 0 4.0 Pd F-a. 00.4.49 F- —‘C F-’C ‘00..4. .4.494- Pd’0O IsPP P P P P P P P P P P P P P P P P P

F-4-49C4F- 04.4.PdPd0E’4’C ‘0.4.Ps~.4.Pd

‘4’4-4-4-4-4- .4.4-4-4-4-4-4-4-4-4-•4.4-4-

~OPdaP.05-.4. .t p • 4904 02 -.p049..p 4904 040 ‘004 4,4 .0

PP P. PP P P P P P P P P P P P P P.4.’C04t5490 49’04949.E49PsIs’0Ps0 ‘C49

4-PdPdPdPdC4 4-4,4PdPdPd4,4Pd4,4PdPd4-4,4Pd

0404~004 .4.5- .4.04490 Pd 0024- .4. Pd Pd Pd F-@44,44- 4’ Ps .4. — Ps 4- .4.0494,44-4-4- .4.494904

PP P P P P P P P P P’PPPPPP PP-PPdPdPdPdPd Pd—PdPdPdPdPdPdPdPd—

00000 05-000 00 000 0 0000F-Is F- F- F- F- — Is F- Is Is F- F- F- Is Is Is F- F- Is

PP P P P P P P P P P P P P P P P P P‘C’C’0’C’C’C ‘C’C’C’0’C’C’C’0’C’C’C’C0

U48 .. C

6 48 ~ a- —C a0 — — 5- —— (4 U~J 105 ~ 66 —~48 —Cfl6 3 0486 482q •U0C —~~C— CU — 3 5 018 —C 48C 48 U. 48.4 C’a0’—U0 (J0 CC ....45C6 648U4848U48

(4 486 00C48S48~— U 1860—5- C— 480 .—1848 a’... 0—03—a 60—C

U. 6’Uhi’Us 0648118(4—SI 0 48— Uhil 48UCaCa6U.I- U6CCa5— hi 0648C0 048 4864848 0 48— CC48P.6A4848U486u48U5in48A.486— 548(a48Chi—’U”OUCS’4 C 648U CU486.48C2CC2486184848 486481848CU48060 48.0 18hi4P4818U. —.4C~~.406.0202rnPAI-I-I-6

U.

4-F- F-~’CPP4’Pd4-4’..p0.OeOF- —04904”C4-4’4.......

PP P P P P P P P P P P P P.4.’C 4,4F-’C....0’0’C0e0F-4- 4- 4- Pd — Pd — —— Pd Pd — —

OP .C4-’C4,d4’04~.~.F-494’49P.4- F-4-’.004p9Is49’CPs0490

IsO —4-49Pd494-PdPd4’4’4-4-4,44,4

4’ F-

4’ 4-

4,4 Pd

4-00 F- @4490 ‘C 04.4’ 49

4’ 4-4,4 Pd 4-4,44,44-4,44- 4- Pd

‘C ‘C ‘C ‘C ‘C ‘C ‘C ‘C’C’C’0’C

00F-F- 4-4-4-4-4-4-4-4-4-4-4-4-

P 4 P P P P p p p P p P P p.0 ‘C 4- 4- 4- 4- 4- 4- 4- 4- 4- 4- 4- 4-

Pd

U

48

—4848CC — —48—(4.048

U6

48.048‘U(JZ48z

48U48 C C

(4I Cs 6 0—1fl6 ID —~

48C .4 0U7(J0 0 ID—UU

486 C—Il... .118C48CC —— 03’aC6’UW 4818—hi I —48611 4861-U6C

~ 06000 6 4848 IDC CU C.0 •6 ID 48 hiPA 6

hi— UUC’UID ~J’— 18C U.ID 14802618484864848.. UP. CO .18.0018— .4 C hi U. .J A. PA PA PA a-6U.

048

180‘011.0

.0U U,

PA A.

z‘a0

06.

hiC

‘018

.4C

Ua

(4

18U.

.4

4-04,4

.4

4-0Pd

0a

6.

48‘PU

.4

48

A.

U

U.4648

483

C0

4hi

66

a-

hi.4(4.4.4hiA.

PAhia-.3.4

(4.4— 018. .402.4 hi @4hia--’

Z 02.4o 3.4-U. 0

1- 0 -56..4 zCO ~.P ‘a U-.PAOO

8— -.3.4

A. ~ U. a-

-3—

===U. .4

(4z

a-PA0Ca

-3-3

U.

Cz.4

-P 480’4

186018

(JPA

r.40

18U.

0~ 04 F-‘004 F-’0

PP P P049 Pd 0

Pd

0~00Pd0.4..4.04’a 4-Pd -..‘004-..—49PdF-494’00F-0404 Pd’C494’ 0.4. .p0004

00 F- F- ‘0044’ 4.0.4. 4-P. 49PP P P P P P P P P P P P P P P P P P P p P P P P

4-49 Pd 4-4-4- .4.4-4-4- 4- 4- 4-’C Pd 4- 4’ 4-4-4-4-4-494,44-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-4-

000Pd ‘0’049-.P4-0’CPPF-F- Pd0Q4.-P.4.4’4’4’4’PdP0Pd000404-

49’004-PdP~P’0~~044-4’494.F-’C4-0490PdF-0PdPP P P P P P P P P P P P P P P P P P P P p p p P P P P P

4’P4-49 ‘CF- 49’0’C’C’C’C49’C ‘0’C’0Is49’C ‘C’0’0’049’C 48%’0~Pd Pd~PdPdPdPdPdPdPdPd4,4~4Pd4,44,4Pd~4PdPdPdPdPdPdPd Pd

Pd...040 ‘C4’F-4’.4.4-4’04,400249PdP..04-4--.PF-4-4-49044-494’4’F-4’ 4-Pd4-~P.Pd4-—~PdPd4-4-’Ca.Pd—4-0Pd04—4-4-~

P P P P P P P P P P.P P P P P P P P P P P P P P P P P P P‘C4949’0 PdPd..PdPdPdPdPdPdPdPdPdPd—4,4Pd4,44,4PdPdPdPd

.0’C’C’C’C’C’C’C’C’C’C’C’C’0’.0’C’C’C’0’C’C’C’C’C’C4-4-4-4- 49494949494949494949494949P.149P’~494949494949494949

PP P P P P P P P P P P • PP P P P P P P P P P P P P P P4-4-4-4- ‘C’C’C’0’C’C’C’C’C’C’C’C’C0’0’C’C’C’C’0’C’C’C’0’C

C480 C

3 4818

48

(a~ 48 0—.§~C062— ID 0IP~48~~CPJ~2OIO6CC

‘04848 C 6C~ .048 18333484848 483CCa— 413 48U. 484802.46410484818. — 25’048 UC 18 P.5(4 COU.06 00018002—CZ 48’U— 48A. 48.0— U.48 S.J 48 U 48 CS 6’0..3 U 48

(aU(a (a~CU U .0C...—C4848 5648 C a C U .40486648480 U C 548—UCC U 48’0SU6 4848484800484818664848 48 18048481848 6—urn Ca C 0 61 U. = hi Z Z 00 48p A. A. A. 0’.4 002023 3 348a

24.

0248

180‘U

48 F-.0U .4

PA 6.

=‘a0

186.

.4C

‘U18

UC

SU0Ca

186.

.4

4-0Pd

.4

4-04,4

6.

U6U

.4648

A.

U

48.46U

483C0

48.466

61.4(4.4

.461A.

02hia-

61.48urn— a~. .40.4610463 a-—

ZPA.40 3.4PU. 0a- 0 -56..4 =COI’a.4

300zCa

I —.3 C U~

.18 ~

(4z

a-PA0(4-3-3U.

C

.4

U0U

486048

(4483

C

186.

60

-.3486

C0(4U.

U48U.

Pd

U

— 48 0U — 6. 48 CC P4—48 — U. C

(4.0 4848U48’P6

~

48.06 48 48‘0(4C2.J ZUz

0490044,402.049

PP P P P P P P4-4-~ 4- Pd .4.4-4-4-4-4-4-4-4-4’

F- 494-0404 Pd 4-4-Pd 04-.0 Pd 00 Pd

PP P P P P P P‘C 4949.04’ 49 F- 4,44,4 Pd Pd Pd Pd Pd Pd 4-

044’ .4.4-49 ‘C 4- 4-—0a.-.PPd4’

p P P P P P P PPd Pd — Pd — Pd 4,4.

‘0’C’C’0’C’C’C’04949494949494949

PP P P P P P P‘C’C’C’C’C’0’C’C

o 5-0025- —

‘C —Pd Pd49 4-4’ 4-

4’ 5-F- .5- ‘C‘C.P.a. F- —49

Pd 4’Pd 494’ 4,44- Pd

Pd 5-0205-0——04 0’——

‘C 4- Pd

F- 5-04495-04

4’~ 4”0 4’

‘C 4949 49

F- 5-4- 0F-..PF- 49

PP P P490 0’C4- 4- F- 49

— 0 5-040-0~

F-a. ..pPdC•4,4 494’

49 F- 5-4- 0Pd Pd — ‘C PA4-4’ 049

4- 4-5-Pd 49

044’..~.P0

IsO a.0

a-6o .0- U ‘C‘.3 C0 048 0483 ‘CC I—’C U.6 0.4 —— 5-~3 4.1a A. OX ~

C ..~ —

•5-~’a S P. —

5- O(4—Z CU—SU. ‘U U 0P’U 48 C6483(4 Ca48~18— C P P C—C (461—US 0.48C~C— 486048 48 1848 CM 6C48 UUC481848— 48CUC P~— 61486U048 — UUU— 0.U.048180 CCCJIDAUU 18.0048 —U 48484861UU483 P.6 ‘0020 ..UCgCS48 48618UU 48648 CO~6S.0 48 4848ID

1 —(4U.=.1.J.4I-’3 ‘PCahihiA.a- CA.A.A.112348 0 48C (4 ‘.11.

02 F- —4’— 04’ 4- Pd‘C F- 4’ 0494’ 4’ 0 Pd

P.4 P P P P P P P

4-4-4-4’ 4- 4- 4- 4- 4-4- 4- 4- 4- 4- 4- 4- 4- 4-

F- F- 4- Pd —004- ‘C49 F- 4-.P. 4’ 4- 4’ 0 PdPP P P P P P P P

494949 ‘C 4949494949Pd Pd Pd Pd Pd Pd Pd Pd Pd

.0040—2 Pd 044’ ‘C494’g~.~p~

Pd Pd Pd Pd Pd Pd Pd Pd Pd

Pd Pd f’P Pd Pd Pd Pd Pd Pd

Is F- F- F- Is F- F- F- F-

C

—18O 648C6 C IDCUE CU4848— —— C(4618U.a- IlIl

‘PID U.ID~ — 48—C.0 ID— 0 0 C 4 — 18 — U —— ~18a- ——EU.U. a- 6.1848~ S (a 648 I 6 II CO

C C 0 — C ID —U 18 18 UP. 6 2 48 61P.4801818— IDOP.48618uuz~A. .4a-

(4

0248

180‘U4802.0‘.1 61PA A.

=‘a0

18U.

61C

‘U18

UC

U0

(4

18U.

.4

4-0Pd

.4

4-0Pd

00

U.

486U.46U

A.48

48.4648

483C0

4861

66

a-

61.4(4.4.4hiA.

‘A61a-

hi.4(4.4— 0~. .40.46104hil-—02.4

0 3.4‘-‘U. 0a- 0-56..4 rCOa-’a.4..PPAOO610 a-61(4.J(4

-.1.4P=.4

2.’a Z(4000

zu-a—-los.

048. -3

uz

a-PA0(4-3-3

Cz.4

F- 4’494-

0 Pd.4’ 4’

.0 F-

040Pd 4-

‘C F-Pd 4-

49 ‘C

.0 Is

0’ ~0204

“P 48OU

a U486048(402

z‘a0

1848.

I’0004

0

48ID

(I

Ii‘0

‘.1

.12

‘0‘.1

‘.3

0

1~

z

5-

C

3‘P

P. U.C 48

Si~P.P.

P.3J— 02 48

ID —U. C C

4848C UI PA4802