WSP02047

• File Number: 8221.112.A
• Description: Central Arizona Project
• State: AZ
• Basin: Colorado Mainstem
• Date: 1/1/1991
• Title: Special Delivery to Tucson--A History and Overview of the CAP
• Water Supply Pro - Doc Type: Publication

~
~
-
I C"':

'-

The 6O-million-gallon ClearwelJ Reservoir is the final stop for treated CAP water before it is delivered to
Tucson YVater customers.

Cost and Funding

~~^~'^~~.....~~~V^~

,t was apparent by the early 1980s that
the conversion to the CAP would have
a significant impact on Thcson Water's
operating and construction costs, The
estimated cost of the entire project of
accommodating the CAP in Thcson is $250
million. This cost includes construction of
the Thcson Treatment Piant, the Clearwell
Reservoir, and the modifications to the
Thcson Water Transmission System, Also,
Thcson Water will initially have to pay
about $60 per acre,foot to the Central Ari-
zona Water Conservation District for oper-
ation of the CAP delivery system and
repayment to the federal government for
construction.
Thcson Water impiemented two impor-
tant strategies to plan for these costs and
minimize the impact to water ratepayers.

First, in 1982 the CAP Surcharge and
Reserve Fund was established to set aside
funds toward the construction of the
Thcson Treatment Plant. Through this
strategy, $30 million of the $80 million
Treatment Plant project cost will have
already been paid by 1992, thus reducing
the need for large rate increases to pay for
the construction. Second, Thcson Water
began construction of major CAP trans-
mission lines in the early 1980s so that
CAP water could be delivered to cus-
tomers when it became available. Small
annual rate adjustments were imple-
mented to pay for these facilities. They
were also partially financed with Water
Revenue Bonds, thus spreading their costs
between existing and future water cus-
tomers,

Costa y Financiamiento

.,.v-.v~~~~y

AprinciPios de la decada de los 80 era
aparente que la conversi6n a CAP
tendrfa un impacto significante en los
costos de operaci6n y construcci6n del
Departamento de Agua de Thcson, La esti-
maci6n del costo de acomodar el proyecto
completo de CAP en Thcson, es de $250
millones, Este costo incluye la cons-
trucci6n de la Planta de Tratamiento de
Thcson, el Dep6sito Clearwell, y las modi-
ficaciones al Sistema de Transmisi6n del
Departamento de Agua de Thcson. Tam-
bien, el Departamento de Agua de Thcson
tendril que pagar inicialmente cerca de
$60 por pie por acre al Distrito de Conser-
vaci6n de Agua de Arizona Central por la
operaci6n del sistema de entrega del CAP
y el pago al gobierno federal por la
construcci6n.
EI Departamento de Agua de Thcson
implement6 dos importantes estrategias
para estos costos y para minimizar el
impacto de las cuotas de agua en los con-
sumfdores. Primero, en 1982 el Sobrecargo
y Fondo de Reserva del CAP se estableci6
para manejar los fondos de la cons-
trucci6n de la Planta de Tratamiento de
Thcson. Con esta estrategia, $30 de los $80
millones del costo del proyecto se habran
pagado para 1992, reduciendo de esa
manera la necesidad de aumentar cuotas
de agua para pagar por la construcci6n.
Segundo, el Departamento de Agua de
Thcson empez6 la construcci6n de lfneas
de transmisi6n del CAP a principios de
1980 para que el agua de CAP pudiera ser
entregada a los usuarios cuando estuviera
disponible. Pequeiios ajustes de cuotas
anuales se implementaron para pagar
estas facilidades. Tambien estuvieron
financiados parcialmente con bonos de
Ingresos de Agua dividiendo de esa
manera los costos entre los usuarios exis-
tentes y futuros,

3