Board approves supplemental guidance to CAWCD rate setting policy regarding collection of fixed OM&R costs for system conservation

The Central Arizona Water Conservation District Board of Directors (CAWCD) convened today for its March 2020 meeting.

The board approved supplemental guidance to the CAWCD Rate Setting Policy Regarding the Collection of Fixed Operations, Maintenance and Replacement (OM&R) Costs for System Conservation. This represents a potential incremental increase to Fixed OM&R rates due to reduction in delivery of CAP Project Water from approved system conservation projects. This action is related to the implementation of the Lower Basin Drought Contingency Plan and the Agreement Regarding Lower Basin Drought Contingency Plan Obligations. CAWCD’s definition of system conservation is an intentional reduction in existing and historic beneficial use, through investment or incentives, to provide a benefit to Colorado River system storage in Lake Mead. In January 2020, Central Arizona Project (CAP) staff members conducted a roundtable discussion to obtain input from CAP contractors and subcontractors who supported this incremental increase and requested opportunities to discuss and understand water supply and rate impacts related to system conservation projects in subsequent years.

During the Public Policy Committee report, the Board approved a position of “support” on SB1113 (requiring tax statements to separately list the amount of primary and secondary taxes due to each taxing jurisdiction). The Board also adopted a position of “monitor” on HB2787 (allowing domestic water improvement districts to conduct water supply development activities using WIFA funds) and HB2880 (relating to the physical availability of groundwater when renewing or modifying a designation of assured water supply in the Pinal AMA).

Additionally, as part of the Finance, Audit and Power Committee report, the Board approved additional spending authority of $25.7 million to record the additional liability related to the decommissioning of the Navajo Generating Station and final reclamation costs of the Kayenta Mine.

CAP staff members provided reports and updates on:

The CAWCD Board of Directors is a popularly elected, 15-member board. Ten members are from Maricopa County, four from Pima County and one from Pinal. Members serve six-year, unpaid terms. The board typically meets publicly the first Thursday of each month to establish policy and set rates and taxes for CAP.

For additional details on the March board meeting, take a look at the agenda and packet. Board minutes and videos will be posted here.


Central Arizona Project (CAP) is Arizona's single largest resource for renewable water supplies. CAP is designed to bring roughly 1.5 million acre-feet of water from the Colorado River to Central and Southern Arizona every year. More than 80% of the state's population, live in Maricopa, Pima and Pinal counties, where CAP water is delivered. It is a 336-mile long system of aqueducts, tunnels, pumping plants and pipelines.