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Show A few projects have had unusually low per acre irrigation costs-less than $75 per acre for new land. For example, on the Gila River Indian Project per acre costs were only $46, and on Fort Yuma Indian Project costs were $61 per acre. Conversely, a few small projects have high irriga- tion charges per acre, such as the San Xavier Indian Project in Arizona with per acre costs of more than $400. Viewed on the whole, however, Federal per acre irrigation costs in the Colorado Basin have been comparatively low. There is little likelihood of this low per acre cost continuing as further irrigation development takes place. The major low-cost sites have been used. On the larger developments proposed, most of which are multiple-purpose projects, up-to-date cost allocations are not available and hence present irri- gation costs cannot be calculated. Many projects involve both new and supplemental water and some assumptions must be made as to allocations of water for each purpose. In general terms, however, both new and supplemental land irrigation is expensive. On one project (Shiprock Indian) cost for irri- gating new- land is $1,000 per acre at 1950 price levels. Similar costs for some other potential projects range from $165 to $900 per acre for new land. In many places the acreage of lands needing sup- plemental water is much greater than new irrigation lands. Among these the Central Arizona Project is an important one. Tentative allocations indicate that the capital costs per acre of irrigated land on this project would be approximately $620. This per acre cost is under the assumption that 640,000 acres of land will be benefited with supplemental water supply by the project. However, it has been estimated that approxi- mately 467,000 acres of these 640,000 could be irrigated with the present water supply in the area to be benefited. The additional equivalent acreage which would receive full water supply through the Central Arizona Project therefore is about 173,000. Calculated on this basis, the costs of irrigation are about $2,200 per acre benefited.2 Costs of other supplemental water supplies on other projects gen- erally are less, some being as low as $200 per acre on the basis of price levels in several different years between 1946 and 1949. The situation with respect to repayment of irri- "Basis of estimate: Allocation to irrigation of $397,- 693,000, as given in H. Doc. No. 136, Central Arizona Project, Washington, 1949, p. 208. A 1948 price level is assumed. gation costs by farmers is even less favorable. On most of the projects now contemplated irrigators will be unable to repay irrigation construction costs. On about half the acreage contemplated for irriga- tion, the irrigators would be able to reimburse less than half the construction costs and on many proj- ects the reimbursement figure drops to 35 percent, 25 percent, 20 percent, and on some projects to less than 10 percent. As this Commission recom- mended in volume 1, other beneficiaries including affected communities and the States should assist in repayment of project costs, based upon the bene- fits they receive. Hydroelectric Power Hoover Dam and the Parker-Davis Project are the two large hydroelectric power units in the Colo- rado Basin. Of the 173.9 million dollars ultimate total cost of Hoover Dam, 148.9 million dollars has been allocated to power. At present, annual costs are about 9.9 million dollars, and revenues are identical. Sales of firm power furnish 8.56 million dollars of this total revenue and nonfirm power $670,000. Nonutility operations and water sales yield another $640,000. The total estimated costs of Parker and Davis Dams are about 140 million dollars, of which 104 million dollars is allocated to power. Over 90 per- cent of the power cost is allocated to Davis Dam. Estimated annual revenue by 1954 from all sources is 6.3 million dollars, of which two-thirds is from the sale of firm energy and $497,000 from nonfirm energy sales. All of this will be from Davis Dam. The Grand Valley Project (Colorado), develops power for project pumping and commercial use. Reimbursement for power is by rental of the power plant to the Public Service Co. of Colorado. The Colorado River Indian Project under con- struction ultimately will have hydroelectric facili- ties estimated in 1950 to cost 9.3 million dollars. No information is available on the eventual disposi- tion of the revenues. On the Ail-American Canal system, no alloca- tions for power were made because construction was undertaken by the water users' organization with its own funds. The total annual power rev- enues for 1949 of 4 million dollars went to this organization, the Imperial Irrigation District. The Salt River Project has been operated for many years and was originally constructed by both the Bureau of Reclamation and the water users. 384 |