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Show largely Federal, as evidenced by the fact that over a third of the Federal investment for flood control has been in the recently completed Shasta and Fri- antDams. Navigation costs have been 25.8 million dollars. Nearly two-thirds of this figure is represented by the allocated costs to navigation in Shasta Dam. Roughly a tenth has been paid by local interests. Both the navigation and flood control programs have been carried on over a long period during which no benefit-cost analyses were made. How- ever, the Corps of Engineers reports that benefits are in excess of costs. The Federal fish and wildlife program has cost 2.7 million dollars. No economic analysis is made of the projects and no income accrues directly to the Federal Xreasury. Hydroelectric Power Hydroelectric power investments in the Central Valley by the Federal Government total 131.5 mil- lion dollars for facilities constructed, or soon to be completed. This figure represents the costs assigned to power in the Shasta and Keswick units of the Central Valley Project, with transmission lines and a steam plant. The Central Valley is an area of medium power costs. The seasonal and annual variations in run- off and the two peaks of demand (in summer and winter) necessitate large steam capacity to supple- ment the output of hydroelectric plants. Prior to 1940 the Pacific Gas & Electric Co., which supplied practically all the power used in the area, had about a third of its installed capacity in steam plants and two-thirds in hydroelectric plants. Energy genera- tion by tbie hydroelectric plants varied from 60 to 90 percent of the annual total, varying with the amount o:f runoff. In its present extensive power construction program, the Pacific Gas & Electric Go. is installing a higher percentage of steam plants and the system capacity is now approaching an equal division between steam and hydroelectric power. As less favorable hydro sites are constructed, costs of hydroelectric generation will rise except insofar as multiple-purpose projects offer opportunity for sharing costs among several purposes. Also, as more steam power is added, the value of hydroelec- tric plants for peaking purposes will serve to justify higher costs. Net revenues from Shasta and Keswick are ex- pected to be more than double the cost of providing the generating facilities. The problems connected with the power rate, the interest component, and subsidy of irrigation costs by power revenues are discussed in chapter 5. Irrigation The Orland Project is the only completed Federal irrigation project in the Central Valley. It was constructed in two parts, the first costing 1.1 million dollars, and the second 1.3 million. The total cost per acre for the 20,000 acres included in the project, therefore, was about $125, a figure much below most current projects. The total cost of the project is charged to irriga- tion, and all of the first 1.1 million dollars has been repaid, without interest. Financial difficulties en- countered during the 1930's led to funding of the combined debt in 1936, with repayment required in 35 years. The ultimate cost, including penalties, interest, and funded operation and maintenance charges, will be $2,471,000. Full repayment is expected in 1977. Costs will be higher in the future than on past projects, public or private. The most favorable sites were developed first, and price levels were lower. New irrigation will require large storage reservoirs, long canals and distribution systems, and in some cases large power requirements for pump- ing. Most of the acreage now planned for develop- ment will require capital investments of $300 to $600 per acre. These cost figures should, of course, be appraised in the light of the very high produc- tivity of land in the Central Valley. Prices of land in the Orland Project, for example, range from $50 to $150 per acre for unimproved property, and from $130 to $750 per acre for improved property. Firm data on the repayment to be expected from irrigators are not available. The Bureau of Recla- mation estimates that of the 225.5 million dollars of construction costs on the initial features of its Cen- tral Valley Project (dams, main canals, and power allocated to pumping), 61 million dollars will be repaid by the water users. This is a repayment of 28 percent. However, if all irrigation costs of the entire project including operation and maintenance are considered, the payment expected of the irri- gators rises to about 70 percent.1 Further contribu- tions by irrigators are made in costs of on-the-farm 1 Calculated as a percentage of the combined total of the capital investment (without interest) and the cumula- tive operation and maintenance costs over the repayment period. 106 |