COVID-19 has destroyed the water industry’s economic model (see COVID-19 Will Change the Water Industry, a Trilogy: The Industry’s Economic Model Is Dead) and provides a natural experiment of the impact of economic activity on the environment requiring an enhanced role for improved science (see COVID-19 Will Change the Water Industry, a Trilogy: Enhanced Role for Improved Science). What does all this mean for planning and decision-making?
Tag Archives: water project risk assessment
What is the Cost of Water in the Bay Delta Conservation Plan?
This second post in my BDCP series answers the question that eludes readers of the Department of Water Resources (“DWR”) materials and participants at DWR’s July 17th presentation:
What is the cost of water to state and federal water contractors?
As explained below, the answer depends on interest rates and risk assessments. I conclude that a reasonable range for the cost of water for state and federal contractors is substantial and depends on DWR’s Delta outflow scenario:
- “low Delta outflow” scenario: $550/AF to $700/AF
- “high Delta outflow” scenario: $750/AF to $1,000/AF