
Stockton, CA -- Delta tunnels opposition researchers have discovered a draft analysis dated September 15, 2017 of CA WaterFix costs completed by the Kern County Water Agency posted at the Wheeler Ridge-Maricopa Water Storage District.
This recent Kern County analysis provides a comprehensive review of how expensive the Delta tunnels project would be for Kern County farmers, and elucidates more realistic cost numbers for State Water Project Contractors than those touted by Metropolitan Water District.
Researchers found that:
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Total WaterFix costs are estimated at $32.1 billion to $41.4 billion over 50 years; however, Kern County Water Agency only looked at interest rates of 3.55% or 3.88%. Higher interest rates would result in significantly higher total costs. These costs do not include potential cost overruns.
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Computations in 2033 dollars show that dividing the maximum capital costs by the average water supply yield results in an estimated cost range of $888 per acre-foot of water to $1427 per acre-foot of water for Kern County Water Agency water users. Using 2017 dollars, the price is discounted to $553 to $889 per acre-foot.
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Kern's total costs range from $4.9 billion to $7 billion, and annual costs range from $153.9 million to $247.5 million.
Restore the Delta executive director Barbara Barrigan-Parrilla noted, "Water this costly would cut deeply into profit margins for smaller farms within the Kern County Water Agency service area, and even the profits of big industrial farms like Stewart Resnick's Paramount Farms. It is feasible that the real end-goal is for urban ratepayers within the Kern service area and Metropolitan Water District to subsidize the project, or that Kern County Water Agency could resell a portion of water back to Metropolitan Water District to make enough revenue to cover bond repayment."
Prior to Westlands Water District's withdrawal from California WaterFix, Kern County Water Agency projected that their cost share would be 24.23% of the State Water Project's 55% share.