Access to Excess CAP Access to Excess CAP Water, 2010 & beyond - PDF document

The following slides were presented as concepts for discussion on 2/24/09 Access to Excess CAP Access to Excess CAP Water, 2010 & beyond Water, 2010 & beyond Customer/Stakeholder Workshop Customer/Stakeholder Workshop February 24, 2009 February 24, 2009 Review of Projected Review of Projected Excess Availability Excess Availability 1

The following slides were presented as concepts for discussion on 2/24/09 CAP – – Excess Supply Excess Supply CAP � AZ Colorado River Entitlement 2,800,000 AF - 1,200,000 AF AZ on-river usage (higher priority) � � CAP Annual Entitlement 1,600,000 AF - 75,000 AF System Losses � � CAP Delivery Supply 1,525,000 AF � M&I Subcontract water (2009 orders) - 478,000 AF � Indian Subcontract water (2009 orders) - 206,000 AF � Ag Subcontract water (2009 orders) - 9,000 AF � Excess Supply 832,000 AF (2009) CAP – – Excess Supply Excess Supply CAP � Excess Supply (2009) 832,000 AF Ag Settlement Pool - 400,000 AF � � Remaining Excess Pool (2009) 432,000 AF � Excess water orders (2009) : � Full Cost Excess 61,000 AF � Incentive Water 345,000 AF � AWBA/CAGRD RR 196,000 AF � Total 602,000 AF (-) 170,000 AF � Excess Pool Deficit 2

The following slides were presented as concepts for discussion on 2/24/09 CAP Supply Utilization CAP Supply Utilization 1,750,000 1,500,000 Other Excess 1,250,000 Excess; Other Excess; Ag Pool Ag Pool NIA; M&I 1,000,000 Acre-Feet M&I Indian; Lease P3; Exchange 750,000 NIA; Indian M&I Uses Indian; On ‐ Res 500,000 250,000 Indian Uses - 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 2058 Customer/Stakeholder Workshop, February 24, 2009 Excess CAP Supply Excess CAP Supply (Excluding Ag Settlement Pool) (Excluding Ag Settlement Pool) 600,000 500,000 400,000 Acre-Feet 300,000 200,000 100,000 - 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 2058 Excess; Other Water Orders (excluding AWBA & GRD RR) Customer/Stakeholder Workshop, February 24, 2009 3

The following slides were presented as concepts for discussion on 2/24/09 Proposed Process for Setting Proposed Process for Setting AWBA/CAGRD RR Pool AWBA/CAGRD RR Pool Discussion of Pricing and Discussion of Pricing and Status of Incentive Status of Incentive Recharge Program Recharge Program 4

The following slides were presented as concepts for discussion on 2/24/09 Factors Under Consideration Factors Under Consideration for Distributing Remaining for Distributing Remaining Excess Excess Access Factors Access Factors � For analytical purposes , � Assume there is a defined block of Excess CAP water available to entities other than the AWBA & CAGRD RR � Assume that the demand for that block of water is substantially larger than the supply � Policy question: “Who should have access to that water?” Customer/Stakeholder Workshop, February 24, 2009 5

The following slides were presented as concepts for discussion on 2/24/09 Access Factors Access Factors � Factors under consideration by CAP staff for access to the “Other” pool � Who ordered the water? � How does order relate to past? � Where will the water be used? � When will the water be used? � What other policies will be advanced? � For each factor, consider the question “Does it matter….” Customer/Stakeholder Workshop, February 24, 2009 Who ordered the water? ordered the water? Who Municipal Water Providers � Subcontractors Excess Orders Placed for 2009 � CAGRD Members (Percent by Volume; excluding AWBA & Ag Pool) � Non-CAGRD Members � CAGRD � Muni 43% SRP � Industrial Users � Other Mines � 1% Power plants � Turf users � Remarket 12% Other � Indus 28% SRP Credit Remarketers � 6% CAGRD 10% Other � Customer/Stakeholder Workshop, February 24, 2009 6

The following slides were presented as concepts for discussion on 2/24/09 How does order relate to past? How does order relate to past? � Existing customer � Order “consistent” with past � Order “inconsistent” with past � New customer Customer/Stakeholder Workshop, February 24, 2009 Where will the water be used? will the water be used? Where � Within CAP’s Service Area � Differentiated by AMA/County � Not differentiated by AMA/County � Outside CAP’s Service Area 63k AFRP; HMRP 55k 53k Phoenix AMA 26k 7k 4k Vidler TDRP 36k Tonopah ID SRP; SWC RWCD 63k NMIDD QCID GRIIDD 24k (PHX) Incentive 33k 99k Recharge, MSIDD Pinal AMA AWBA and CAIDD; HIDD GRIIDD (PIN) 7k CAGRD RR Kai 52k 1k Orders LSCRP; AVRP CMID; BKW Tucson AMA 32k Direct CAVSRP SAVSRP k 1 USFs PMRRP GSFs Customer/Stakeholder Workshop, February 24, 2009 7

The following slides were presented as concepts for discussion on 2/24/09 When will the water be used? When will the water be used? � Now, by customer � Direct delivery � Treatment plant, supplemental Ag, turf, etc. No credit earned � Annual storage & recovery; Replenishment � USF or GSF � Within or outside the Area of Impact � Now, by partner; Later, by customer � Long-term storage credits @ GSF Long-term storage credit earned � Later, by customer � Long-term storage credits @ USF Customer/Stakeholder Workshop, February 24, 2009 What other policies other policies What will be advanced? will be advanced? � Water management benefit � AMA management goals � CAP’s public policy purposes � Credit recovery targets � Local/regional economic benefit � Support for agriculture � Support for municipal water providers � Reduction in CAGRD obligation � Self-firming Customer/Stakeholder Workshop, February 24, 2009 8

The following slides were presented as concepts for discussion on 2/24/09 Access Factors Access Factors How… When… Existing New Now/Now Now/Later Later/Later Consistent Inconsistent What… Water Mgmt. Recovery Ag support Muni support Who… Where… Inside Outside Muni CAGRD Industrial Remarket SRP Phoenix AMA Subcontractor Mines Pinal AMA CAGRD Power Tucson AMA Non-CAGRD Turf Other Customer/Stakeholder Workshop, February 24, 2009 Perspective Issues Perspective Issues � How involved should CAP be in customers’ business? � Should the size of individual orders be limited? � What role should rates play? � How should pool access be set? Implementation must include mechanisms to discourage ‘gaming’ but also be manageable Customer/Stakeholder Workshop, February 24, 2009 9

The following slides were presented as concepts for discussion on 2/24/09 Hypothetical Implementation Hypothetical Implementation � Fake example #1 : Single pool, with access based on scoring � Highest score: Muni provider, inside CAP service area, reducing CAGRD reliance through direct delivery � Lowest score: Speculator, with no previous history, earning long-term storage credits outside of CAP service area 2 6 3 9 1 7 4 5 8 Customer/Stakeholder Workshop, February 24, 2009 Hypothetical Implementation Implementation Hypothetical � Fake example #2 : Three pools, with separate eligibility requirements � Pool A: Muni providers and CAGRD � Pool B: Industrial users storing at GSFs � Pool C: Unrestricted Customer/Stakeholder Workshop, February 24, 2009 10

The following slides were presented as concepts for discussion on 2/24/09 Hypothetical Implementation Hypothetical Implementation � Fake example #2 : Three pools, with separate eligibility requirements � Pool A: Muni providers and CAGRD � Pool B: Industrial users storing at GSFs � Pool C: Unrestricted Bottom Line: Many decisions will be required to design an effective program Customer/Stakeholder Workshop, February 24, 2009 Customer/Stakeholder Workshop, February 24, 2009 11

The following slides were presented as concepts for discussion on 2/24/09 Next Steps Next Steps � AWBA meeting on April 1 st � Agenda item or back-to-back � Recommendation to Board on Incentive Recharge Program � Develop alternatives for “Other” access Timing Considerations: � CAP’s planning � Rates AWBA planning Customers’ planning � � Customer/Stakeholder Workshop, February 24, 2009 Send comments & questions to Ken Seasholes (kseasholes@cap-az.com) 12