Response to Data Request Item 20
This data request response has been created from the response to item 12.
CAP Project Costs including interest and Hoover capacity charges is estimated at nearly $5.2 billion. Project funding sources are varied and include power revenues, interest, property taxes, land sales, capital charges and other revenues. The costs and funding sources are explained in detail in the table called "Preliminary: Total CAP Project Costs Including Interest & Hoover Capacity Charge"
CAP water is allocated by the Secretary of the Interior under the authority of section 5 of the Boulder Canyon Project Act of 1928 and the U.S. Supreme Court decree in Arizona v. California, 376 U.S. 340 (1964). There have been many CAP allocation decisions over the years, but the key decision is that of Secretary Watt published in the Federal Register on March 24, 1983 which defined the allocations to M&I water users that are reflected in the current long-term M&I water service subcontracts.
The Secretarial allocation was based on a recommendation from the Arizona Department of Water Resources, which explained its process and rationale in a three letters addressed to then Interior Secretary James Watt. The first letter dated January 18, 1982 is the original letter. The second letter dated April 6, 1982 and the third letter dated November 10, 1982 were amendments to the January 18th letter. ADWR followed a similar procedure in recommending the reallocation of uncontracted CAP M&I water in 1999.
CAP rates are set according to Board policy here
Current rates can be found here