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RCED-83-150 1 (1983-06-08)

handle is hein.gao/gaobabebs0001 and id is 1 raw text is: BY THE U.S, GENERAL ACCOUNTING OFFICE Report To The Honorable George Miller, United States House Of Representatives Proposed Pricing Of Irrigation Water From California's Central Valley New Melones Reservoir The New Melones Reservoir in California is the latest addition to the Bureau of Recla- mation's vast network of dams, reservoirs, canals, and pumping stations known as the Central Valley Project. Since New Melones is part of the CVP, the Bureau adds its irriga- tion construction, operation, and mainte- nance costs to other CVP costs. The entire irrigation costs are then used in calculating rates for water repayment. As a result, New Melones irrigation rates are lower than they would be if its water users had to repay construction and operat- ing costs of the reservoir. Costs associated with New Melones will eventually cause the rates of other CVP users to increase. Be- cause of existing long-term contracts, how- ever, the increased rates cannot be passed on to other users until their contracts expire or are amended. 121665 1z GAO/RCED-83-150 tC4OU < JUNE 8,1983 R.<'9o -7

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