Financing of the SWP

 By the end of 1998, about $5.1 billion had been spent to construct SWP facilities. Total projected capital expenditures for 1998 through 2010 is $448 million, of which $175 million is for the East Branch Extension underway and the planned South Delta facilities. The remainder is reserved for a variety of projects and activities including modifications to the West and East Branches.

SWP financing comes from various sources, the major source now being the sale of revenue bonds (about 78 percent, see sidebar on page __). The last of general obligation under the Burns-Porter Act was sold in 1972. Other capital funding sources have included tideland oil revenues, investment earnings, funds advanced by the SWP contractors, recreation appropriations, and federal flood control payments.

While each contract contains basically the same provisions, each has some differently agreed to provisions based on the individual needs of the contracting agency.

The Delta Water Charge is common to all agencies. Each pays the same amount per acre-foot of entitlement for constructing and operating the SWP conservation facilities, which are used to develop the Project's water supply. These facilities include Lake Oroville, San Luis Reservoir, and a portion of the California Aqueduct from the Delta to San Luis Reservoir. The Delta Water Charge also provides funds to maintain water quality in the Sacramento-San Joaquin Delta, where the water is exported to various regions of the State. Each contractor also pays transportation charges for the construction, operation, and maintenance of necessary facilities to convey the water to its respective location. The greater the distance the water is transported, the higher the cost.

Repayment of bond principal and interest make up about 37 percent of contractors’ costs, while about 32 percent is for power purchases, 25 percent for labor and equipment, and 6 percent for replacement and other miscellaneous expenses.

All SWP contractors pay for construction of certain conservation facilities such as Oroville (bucketwheel, right) and San Luis Reservoir.