CoEM 2022 CAP Water Order

City of
EL MIRAGE

Ese Arizona
GRAND HERITAGE, BRIGHT FUTURE!

Public Works Department

10355 N 121 Avenue, El Mirage 85335

623-935-6405; Fax 623-935-6184; TDD 623-933-3258

www. cityofelmirage.org

August 26, 2021

Water Services Administrator
Water Control, Central Arizona Project
PO Box 43020

Phoenix, AZ 85080-3020

RE: Subcontract 2022 order

- City of El Mirage
- Municipality
- 508 acre-feet total

Requested Water Type

e Subcontract (No. 07-XX-30-W0504) @ 508 Acre Feet
e Subcontract (No. 21-XX-30-W0699) @ 1318 Acre Feet

Delivery Schedule 2022

Request for water to be delivered and stored beginning in July 2022 at one or all of
the three Underground Storage Facilities listed below.

e Hieroglyphic Mountains Recharge Project
Water Storage Permit 73-584466.1200

e Agua Fria Recharge Project (Constructed Facility)
Water Storage Permit 73-569776.1300

¢ Tonopah Desert Recharge Project
Water Storage Permit 73-593305.1400

The 2022 CAP subcontract fees will be $255.00 per acre-foot (AF).
Delivery $192.00 per AF; Capital costs $50.00 per AF; and Storage/Recharge $13.00 per AF.

In the Event

NIA allocation is approved and contracts assigned during 2022 El Mirage would take the
allocated 1318 Acre Feet at the 2022 Fee of $255.00 per acre-foot for delivery, capital costs and
storage.

Future Projections
e 2023 CAP subcontract 508 Acre Feet; CAP NIA 1318 Acre Feet
¢ 2024 CAP subcontract 508 Acre Feet; CAP NIA 1318 Acre Feet

Contact Info: Derek Castaneda
10355 N 121st Ave
El Mirage, AZ 85335
Phone 623-876-4252
Email: dcastaneda@elmirageaz.gov

Mailing Address: City of El Mirage, 10000 N El Mirage Road, El Mirage, AZ 85335
(623) 935-6405 FAX (623) 374-7308 TDD (623) 933-3258
www.cityofelmirage.org

CENTRAL ARIZONA PROJECT June 10, 2021
FINAL 2022-2026 RATE SCHEDULE

DELIVERY RATES FOR VARIOUS CLASSES OF WATER SERVICE
Units = $/ acre-foot
(The Letter Designations in the Formulas Refer to the Rate Components Shown Below)

DCP Tier TO T1 11 T1 1 fal
Firm Firm Advisory
2020 2021 2022 2023 2024 2025 2026
Municipal and Industrial Subcontract (B+C)*” $ 155 $ 160 ‘$192 s 200 $ 214 $ 222 $ 225
Federal Contract (B+C)°” $ 155 $ 160 $ 192 $ 200 $ 214 $ 222 $ 225
Agricultural Settlement Pool (C) ' $ 56 $ 56 $ 56 $ 57 $ 61 $ 61 $ 63
Excess (AtB+C) ° $ 211 $ 213 $ 242 $ 256 $ 284 $ 290 $ 291
Interstate (A+B+C+D) TBD TBD TBD TBD TBD TBD TBD
RATE COMPONE!
Units = $/acre-foot
Firm — Firm Advisory
2020 2021 2022 2023 2024 2025 2026
Capital Charges
(A) Municipal and Industrial - Long Term Subcontract ® $ 56 $ 53 $ 50 5 56 $ 70 $ 68 $ 66
Delivery Charges
Fixed O&M* 75 78 103 105 112 120 121
"Big R"* 24 26 33 38 41 41 41
(B) Fixed OM&R * $ 99 $ 104 $ 136 $ 143 $ 153 $ 161 $ 162
(C) Pumping Energy Rate ° $ 56 $ 56 $ 56 $ 57 $ 61 $ 61 $ 63
(D) Property Tax Equivalency TBD TBD TBD TBD TBD TBD TBD
(E) Full Rate Stabilization® $ - $ - $ (13) $ (12) $ - $ - $ -
(F) 2020 Voluntary Rate Stabilization’ $- $$ - $= F- $F$ (1I)$ - F$ -
DIRECT UNDERGROUND WATER STORAGE
= $/acre-foot
Firm Firm Advisory
020 2021 2022 2023 2024 2025 2026
Underground Water Storage O&M *®
Phoenix AMA $198 12 sis 8 48 4S 15
Tucson AMA 15 15 15 15
Underground Water Storage Capital Charge °
Phoenix AMA $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15
Tucson AMA 9 9 9 9 9 9 9

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CENTRAL ARIZONA PROJECT June 10, 2021
FINAL 2022-2026 RATE SCHEDULE

NOTES:

1)
2)

3)

4)

5)
8)

7)

8)

Agricultural Settlement Pool only pays the energy rate in accordance with the Arizona Water Settlement
Agreement.

Excess water is administered via Board Policy "Procedure For Distributing CAP Excess Water and Turn-Back Water
for the Period of 2020 Through 2024".

For M&l use water, the Capital Charge is paid on full allocation regardless of amount delivered and is not included
in delivery rates. The Capital Charge rate is impacted by the following:

. 2021 - 1-cent of 2019/20 property taxes were approved to be applied to the federal repayment by the
CAWCD Board in 2019. An additional 2- cents of property taxes are being applied to the federal
repayment from the 2020/21 property taxes, resulting in a reduction of $26/AF.

. 2022 - 21/2 cents of 2020/21 property taxes are being applied to the federal repayment, resulting in a
reduction of $21/AF.

. 2023 - 11/2 cents of 2021/22 property taxes are being applied to the federal repayment, resulting in a
reduction of $13/AF.

Fixed OM&R charge consists of Fixed O&M and “Big R" (Water delivery capital, large extraordinary maintenance
projects and bond debt service). Debt service on CAP's Water Delivery O&M Revenue Bonds, Series 2016 is about
$3.6 million annually and is included in "Big R". This rate is collected on all scheduled water whether delivered or
not.

The pumping energy rate applies to all actual water volumes delivered as opposed to scheduled.

If Tier 1 or higher occurs, the Full Rate Stabilization takes effect, resulting in a reduction in the Fixed OM&R rate.
Posted rates do not include this reduction. This is a customer funded program.

If Tier 1 or higher occurs, the 2020 Voluntary Rate Stabilization program takes effect for those entities
participating, resulting in a reduction in the Energy rate, Posted rates do not include this reduction. This is a
customer funded program.

Underground Water Storage O&M is paid by all direct recharge customers using CAP recharge sites.
Underground Water Storage Capital Charge is paid by all direct recharge customers except AWBA for M&l firming,
the CAGRD, municipal providers within the CAP service area and co-owners of CAWCD recharge facilities using no
more than their share of capacity.

Key Assumptions

-Non-l

ndian Ag reallocation occurs in 2021 for 2022 deliveries

-Wheeling starts in 2023 at 3,000 acre-foot/year and increases to 4,000 acre-foot/year in 2024 and remains at that level

-Rates

are in accordance with Arizona Implementation Plan for Drought Contingency Plan

FIXED OM&R RATE AT DCP TIERS (For Planning Purposes Onl
Ui $1 acre-foot

Firm Advisory

2022 2023 2024 2025 2026
Normal $ 102 $ 107 $ 113 $ 119 $ 120
Tier 0 $ 109 $ 114 $ 121 $ 127 $ 128
Tier 1 $ 136 $ 143 $ 153 $ 161 $ 162
Tier 2a $ 146 $ 155 $ 165 $ 173 $ 174
Tier 2b $ 152 $ 162 $ 172 $ 181 $ 182
Tier 3 $ 164 $ 176 $ 186 $ 196 $ 197

Rates are net of rate stabilization

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