WSP05088

• File Number: 8221.112.J
• Description: Central Arizona Project
• State: AZ
• Basin: Colorado Mainstem
• Date: 10/1/1993
• Title: Governor's Central Arizona Project Advisory Committee: Final Report and Recommendations
• Water Supply Pro - Doc Type: Report/Study

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GOVERNOR'S CENTRAL ARIZONA PROJECT ADVISORY COMMITTEE

Environmental Issues Working Group Report -- August 16, 1993

The Environmental Issues Working Group met seven times from May through
August. The Group studied a variety of issues during that time. A subcommittee of the
Environmental Group prepared a paper which discussed establishment of a water allocation
for the conservation and development of fish and wildlife resources; establishment of an
environmental trust fund; funding sources for such a fund; establishment of a CAP
mitigation advisory board; interstate water marketing; and a series of other related issues.
The Working Group adopted three recommendations for consideration by the full Advisory
Committee.

Report of the Financial Issues Working Group -- Draft, August 16, 1993; Final, September
1993

The Financial/Legal Issues Working Group met ten times from May through August.
The report documents a wide range of issues and solution elements discussed by the
Working Group. The Working Group attempted to develop a financial projection model that
identifies the assets and liabilities of CAWCD, its revenue sources, and projected cash
outflows. In order to compare the effects of various elements, the Working Group
developed a reference case model which was based upon the current operating projections
of the CAP including 1) $1.8 billion repayment ceiling, 2) CAWCD pays for siphon repairs
and Navajo scrubbers from its reserve accounts, 3) water pricing for Indian use equals M&I
pricing, 4) CAWCD reserve accounts are reduced to $52 million, and 5) DWR projections
for water use are assumed for model revenue projections. The report discusses the
financial implications associated with power, water and other resources of CAWCD;
development of cash flow projections; operations and power marketing optimization;
repayment reduction alternatives; incentives for CAP use; and new revenue sources.
Obtaining increased revenue from marketing of surplus power from the Navajo Generating
Station was endorsed. The report discusses the potential financial benefits of lowering
federal repayment obligations by including sales of water for agriculture and for
environmental, fish and wildlife uses. Within the area of incentives for CAP use, the

FINAL REPORT AND RECOMMENDA TlONS

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