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<br />. . b~b951 <br /> <br />exchange for the right to later interrupt such <br />deliveries and require the member agency to rely on <br />local water sources to reduce demands for imports during <br />drought. <br /> <br />3. Local Proiects Pro~ram (1983). As revised <br />by the Metropolitan Board at its March, 1990, meeting, <br />the LPP offers a $154/AF payment for reclaimed water to <br />stimulate maximum use of available water supplies. (See <br />Section VI.C) <br />4. Conservation Credits Pro~ram (19B8). The <br />credits program provides strong financial incentives for <br />conservation similar to an increase in the marginal <br />price of water. Under the program, the financial <br />benefit of conservation includes the $154/AF direct <br />payment (under the proposed new rate) and the avoided <br />payment to Metropolitan of $230 for treated <br />noninterruptible water -- the equivalent financial <br />incentive of raising the marginal wholesale water rate <br />to $384/AF. (See Section VI.B) <br />5. Seasonal Stora~e Pro2ram (1989). <br />a. To better manage peak water demands <br />and to encourage the conjunctive utilization of local <br />groundwater basins and surface storage facilities, <br />Metropolitan in 1989 established a seasonal storage <br />rate. <br /> <br />b. During the winter months, when water <br /> <br /> <br />supplies are relatively abunaant and water demands low,. <br /> <br /> <br />Metropolitan sells seasonal storage water at a <br /> <br />-21- <br />