Arizona’s Water & Power PlanCAP and Hoover

Thomas W. McCann

April 5, 2013

Central Arizona WaterConservation District

• A multi-county water conservation district

• Authorized under ARS Title 48, Chapter 22

• Formed in 1971 by Maricopa, Pinal and PimaCounties

• Service area includes 80% of State’spopulation

CAWCD Mission

• Operate and maintain the Central Arizona Project

• Deliver the remainder of Arizona’s Colorado River

apportionment (about 1.6 MAF per year)

• Repay Arizona’s share of reimbursable CAP

construction costs (about $1.65B)

• Develop and operate recharge projects

• Operate the Central Arizona Groundwater

Replenishment District

Central Arizona Project

• Federal Reclamation project

• Authorized by Congress in 1968

• Construction began in 1973

• First CAP water delivered in 1985

• CAP water supply system declaredsubstantially complete in 1993

• Total cost $4+ billion

CAP Physical Features

• 336-mile aqueduct

• 15 pumping plants

• 8 inverted siphons, 3 tunnels

• New Waddell Dam & Lake Pleasant

• 24.3% of Navajo Generating Station

CAP Customers

• Municipal & Industrial

– 52 long-term subcontractors

• Native American

– 11 long-term contractors

• Agricultural

– 20 excess water contractors in Ag Settlement Pool

• Recharge

– Arizona Water Banking Authority

– CAGRD

2012 CAP Deliveries

25%

26%

31%

18%

M&I Indian Agriculture Recharge

1.599 MAF

CAP Energy Use

• 2.8 million MWh needed to

deliver 1.6 million acre-feet

CAP Elevation Profile

-15 35 85 135 185 235 285 335

Distance (miles)

400

900

1,400

1,900

2,400

2,900

Ele

vatio

n(f

eet)

Mark

Wilmer

Bouse Hills

Little HarquahalaHassayampa

Waddell/

Lake Pleasant

Lake

Havasu

Brady

Picacho

Red Rock

Twin Peaks

Sandario

Brawley

San Xavier

Black Mountain

La Paz Maricopa Pinal Pima

Phoenix AMA Pinal AMA Tucson AMA

Snyder Hill

Salt

Gila

1.5

MA

F

1.0

MA

F

0.5

MA

F

0.2

5M

AF

0.1

25

MA

F

Volume Through Segment*

* 2009

Entrance toBuckskin

Mtn tunnel

Mark WilmerPumping Plant

Colorado River Intake

Energy Use by Pumping Plant

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Annual MWh

CAP Generation Resources

• Navajo Generating Station

• Hoover

• New Waddell

• Market

Navajo Generating Station

• U.S. owns 24.3 % of NGS

– 547 MW capacity

• CAP reserves NGS energy to meet pumpingneeds

• Unreserved NGS energy is sold by WesternArea Power Administration as Navajo Surplus

– Net proceeds assist CAP repayment

Issues Facing NGS

• Navajo Nation land lease renewal

• Coal contract renewal

• Water contract renewal

• Increasing operating costs

• Environmental regulations

– Regional Haze Rule (BART)

– Mercury & Air Toxics Rule

– Ash Rule

– Carbon (?)

CAP’s Hoover Contract

• Hoover B energy

– 176,768 MWh maximum (at best, 6% of CAP energyneeds)

– Provides ramping, regulation and reserves for CAPloads, a product not readily available from thecompetitive market

• Hoover C energy

– Provides additional energy during high Colorado Riverflows

• CAP also needs more energy to move the extra water

• 359,519 MWh in 1999

• Associated transmission rights are critical

State Water and Power Plan

• Originally enacted in 1967 to construct and finance theCAP as a state project

– Passage of Colorado River Basin Project Act in 1968 made stateproject unnecessary

• Amended in 1986 to implement the Plan 6 FundingAgreement

– CAWCD and other parties provided up-front funding toconstruct CAP regulatory storage features

– CAWCD issued bonds, secured by revenues from sale of NavajoSurplus

• Governs marketing of power and energy from Hooveruprating

Interconnected Resources

• Hoover Power Plant Act of 1984

– Authorized uprating that made Hoover B possible

– Directed Secretary of the Interior to adopt a plan for

optimizing the availability of Navajo Surplus to assist with

CAP repayment

• APA’s 1985 Hoover power marketing plan designed to

implement Navajo Power Marketing Plan

• Navajo Power Marketing Plan premised on CAWCD

receiving Hoover B & C for CAP pumping to optimize

the amount of Navajo Surplus that can be sold

Questions?