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IMPERIAL IRRIGATION DISTRICT Notes to Combined Financial Statements, Continued claims, Such amounts have been included in other accrued expenses in the accompa- nying combined balance sheets for 1994 and 1993, respectively. Take or Pay Contracts The District has two energy and capacity contracts with Southern California Public Power Authority (SCPPA), a joint powers 1995 1996 1997 1998 1999 Thereafter authority organized under the laws of the state of California, Under the first con- tract, the District purchases 6.5% of the energy generated by SCPPA's 5,91% own- ership in the Palo Verde Nuclear Project (the Palo Verde Project), a nuclear-fueled generating station, Under the second con- tract, the District purchases 50.98% of the Palo Verde Project $ 5,540,000 5,540,000 5,512,000 5,512,000 5,512,000 100,496,000 $ 128,112,000 San Juan Proj ect 6,111,000 7,650,000 9,188,000 9,188,000 9,188,000 174,568,000 215,893,000 The District makes monthly payments to SCPPA for its portion of costs, which includes charges for decommissioning the nuclear power plant and acquisition, operation and maintenance of the electric generating plant. Such charges are recorded by the District as cost of fuel in the accompanying combined statements of income, Energy Supply Purchase Commitment The District has an energy supply contract with EI Paso Electric Company, The agree- ment terminates April 30, 2002, The purchase commitment is all energy supplied under the contract up to 150 megawatts, All energy over 150 megawatts is to be charged at a fixed rate, The District's estimated yearly purchase commitment under this agreement is as follows: Heber-Mirage Transmission Project The District entered into an agreement with several independent small power producers operating in the Imperial Valley. The agreement provided for the construc- tion of the Heber-Mirage Transmission Project (Project) consisting of a new electric transmission line and alternative energy resource facility, The Project was funded entirely by the participants and was com- pleted in 1988, The total extent of the par- ticipants' funding contributions, as provid- ed for by the agreement, totaled $65,188,400, In exchange for such funding contributions to construct the Project, the District agreed NOTE 13 Metropolitan Water District Water Conservation Program Beginning in January 1990, the District received payments from the Metropolitan Water District of Southern California (MWD), to initiate a water conservation program, The purpose of such payments is to provide capital for District-construct- ed water conservation projects in the to grant each participant transmission credits equal to the total amount of their respective contributions, including finance costs and other fees, These transmission credits are used to offset periodic energy billings for power generated by the Project and sold to the participants, and expire after 15 years from the completion date of the Project, Postretirement Benefits In addition to the pension benefits described in note 11 to the combined finan- cial statements, the District provides health and medical insurance benefits for its retired employees, Employees are eligible upon reaching the normal retirement age Imperial Valley, In 1994 and 1993, the District received $6,761,275 and $13,590,948, respectively, as reimbursement for approved capital costs. Cumulative payments received total approximately $93,926,954 and $88,881,632 at December 31,1994 and 1993, respectively, The District will be reimbursed for approved amounts, including certain indi- capacity and energy generated by SCPPA's 41,8% ownership of the San Juan Unit 3 Project (the San Juan Project), The terms of the contracts require that the District make certain minimum payments, whether or not the District receives power, based upon the debt service requirements of the pro- jects, The District's estimates of such mini- mum payments are: Total SCPPA Take or Pay Commitment 11,651,000 13,190,000 14,700,000 14,700,000 14,700,000 275,064,000 344,005,000 Yearly Purchase Commitment 1995 $ 35,460,000 1996 35,460,000 1997 35,460,000 1998 35,460,000 1999 35,460,000 Thereafter 106,380,000 $283,680,000 of 65 or upon early retirement at 55 with ten years of service, Approximately 260 employees meet the eligibility require- ments. The District pays the majority of the monthly premium depending upon the age of the employee and the number of dependents the employee wished to include in the plan, Expenses for this plan are recognized on a "pay-as-you-go" basis, Premiums for such health benefits, which are not significant as compared to total administrative expenses, are expensed when claims are paid and amounted to approximately $1,457,123 and $1,030,552 for 1994 and 1993, respectively. rect costs, through the year 2028, In return for such payments, MWD will be entitled to receive the water that is estimated to be conserved as a result of the implemented conservation measures, In 1993, the District received an additional $4,600,000 from MWD that is included in other restricted cash and has been set aside for indirect costs,