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Show DIXIE PROJECT, UTAH 99 Mr. ROGERS. That is untreated ? Mr. DOMINY. That is untreated, too. The city has to pick it up, treat it and put it in its own distribution system. Mr. ROGERS. There are not many cities in the United States that get water below 15 cents a thousand gallons anywhere. Mr. DOMINY. As a rule of thumb, the cities figure 10 cents a thousand gallons, $ 33 an acre- foot. That is about what they are shooting for as a rule of thumb. If they can do that or better Mr. ROGERS. Why wouldn't this be figured on an average rather than the figure of $ 22? Why should those people there in a situation of this kind, where you are getting the $ 30 million interest- free account for some 20,000 acres of land, be allowed to buy cheaper utility, municipal, and industrial water than other people ? Mr. DOMINY. The way we arrived at this figure, we had two things in mind. This rate pays the municipal industrial water allocation with interest in 50 years, and this rate corresponds with what they pay now from other sources of water, including treatment and distribution and everything, so this is not a subsidy in any way as I see it because they are going to have to pay this amount for raw water in the canal. Mr. ROGERS. What you are doing is figuring out the amount of water that would be allocated to municipal and industrial on a dollar and cents basis and then divide it up over a 50- year period. Why wouldn't it be better to reverse that and determine what the average cost of water is so that the people would participate, like other people all over the country, and figure out how much they would pay if they paid on the average basis and then just make that reduction in the overall cost of the program. It seems to me it would be much more simple. Mr. DOMINY. Of course, we have been setting our municipal and industrial water rate in recent years on the policy of payout in 50 years with interest. Any charge above that, of course, is available then for aid to the irrigation, the same as the surplus powder revenue is available for aid to irrigation. Mr. ROGERS. Yes; I understand that is true. What I am talking about is this: When you make your breakdowns, irrigation, municipal, industrial, recreation, fish and wildlife, flood control, you do that first. Why wouldn't it be better to determine what the municipal and industrial water sales would bring in before you make your other divisions? Mr. DOMINY. Well, in other words, approach it from what the traffic will bear point of view. Mr. ROGERS. That is exactly right; not what the traffic will bear- water is worth what it costs when you need it, but from what the other people throughout the United States are having to pay. That seems to be one of the arguments that comes out so often in these reclamation projects. For instance, I do not know what St. George is paying for raw water now, I do not know what Cedar City is paying but I do know what they are paying in other sections. I mean even east of the Mississippi River. They are paying pretty substantially more for water, raw water, than 7 cents a thousand gallons. Mr. DOMINY. I think it would be of interest, along this line of questioning, to get a little more detail on this. We will be glad to give you a further statement comparing this with the Canadian River project. We compare always, in municipal and industrial water, what the |