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, expected to be flourishing and to offer new water supply choices. "This is a very significant trans- action; said Tom Havens, a Colora- do water adviser and longtime ad- vocate of water marketing. "This is not the end. It is the beginning of a paradigm shift that will affect the entire Western Unit- ed States." Rob Hallwachs, a spokesman for MWD, said, "Weare pleased they have finally reached an agreement, so the process can move ahead. We look forward to reviewing the con- tract in more detail, and may have additional comments." Under the agreement, the water authority would pay the Imperial district an estimated $249 an acre- foot in 1999. The authority also will pay a fee to MWD for transferring this water into Southern California via the 242-miIe Colorado River Aqueduct, the only pipeline from the river to Southern California. If the authority pays close to what it considers a legal "wheeling rate" to MWD for this service - about $iO per acre-foot - the total - -. cost of the valley water, delivered, should be competitive with water offered by MWD, which would cost about $350 to $400. Under the agreement, the water authority and the Imperial district will be able to renegotiate the price every 10 years to have it reflect what is expected to be a bustling free market in water supplies in the West. "We will be able to recalculate the water rate every 10 years so that the water authority is assured that we are not paying more than the market rate; Stapleton said. But MWD and the water authori- ty have not agreed on a price for use of the MWD's aqueduct, and MWD leaders in the past have spo- ken of wheeling rates of $250 or so per acre-foot. More negotiations are scheduled this weekend on this point. One motivational factor is a law written this year by state Sen. Dave Kelley, R-Idyllwild, who represents large parts of both San Diego and Imperi- al counties. If the water authority and MWD haven't agreed on a wheeling rate, this law requires state Water Re- sources Director Dave Kennedy to recommend a rate to the Legisla- ture in January. Frahm said, "We're either going to reach an agreement with MWD this Saturday, or there will be a clear understanding that we cannot reach an agreement."