Response to Data Request Item 28

This data request response has been created from the response to items 11, 12, 14, 16, 17, 18, 20, 21 and 27.

The CAP Subcontracting Status Report can be found at http://www.cap-az.com/operations/allocations/

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 found http://www.cap-az.com/includes/docs/boardpolicy/1997_CAP_Rate_Setting_Policy.pdf

Current rates can be found found http://www.cap-az.com/includes/media/docs/2009-2010-Water-Rate-Schedule.pdf

The specific volumes by entity are found in the table "Subcontracts and Other CAP Supplies". The Subcontracting Status Report at  http://www.cap-az.com/operations/allocations/  provides background information about each contract for more a detailed understanding.

M&I subcontractors pay water service capital charges in semiannual installments based on their entitlement to Project water.  The amount of the charge is determined annually by CAP, as shown in the table below.  M&I subcontractors that are current on their water service capital charges as of July 1, 2008, have paid $505 per acre-foot of CAP M&I entitlement.  For example, a subcontractor with a 1,000 acre-foot per year CAP M&I entitlement would have paid $505,000 in water service capital charges to date.

Pumping energy rates by pumping plant are listed below.

CAP does not aggregate project ad valorem taxes by water provider geographies.  CAP does aggregate it by county.  Projected ad valorem taxes from 2008 through 2018 are shown below.