Economic and Conservation Evaluation of Capital Renovation Projects: Cameron County Irrigation District No. 2 (San Benito) – Interconnect Between Canals 39 and 13-A1 and Replacement of Rio Grande Diversion Pumping Plant
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Initial construction costs and net annual changes in operating and maintenance expenses are identified for the capital renovation project proposed by the Cameron County Irrigation District No. 2 (a.k.a. San Benito) to the North American Development Bank (NADBank) and Bureau of Reclamation. Both nominal and real, expected economic and financial costs of water and energy savings are identified throughout the anticipated useful lives for both components of the proposed project (i.e., a lined interconnect between Canals 39 and 13-A1 and replacement of the Rio Grande diversion pumping plant). Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Expected cost of water savings and cost of energy savings for both components are aggregated into a composite set of cost measures for the total proposed project. Aggregate cost of water savings is estimated to be $41.26 per ac-ft and energy savings are measured at an aggregate value of $0.0001586 per BTU (i.e., $0.541 per kwh). In addition, expected values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The aggregate initial construction cost per ac-ft of water savings measure is $157.07 per ac-ft of water savings. The aggregate initial construction cost per BTU (kwh) of energy savings measure is $0.0001777 per BTU ($0.606 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -3.80.
Rister, M. Edward; Lacewell, Ronald D.; Sturdivant, Allen W.; Robinson, John R.C.; Popp, Michael C.; Ellis, John R. (2003). Economic and Conservation Evaluation of Capital Renovation Projects: Cameron County Irrigation District No. 2 (San Benito) – Interconnect Between Canals 39 and 13-A1 and Replacement of Rio Grande Diversion Pumping Plant. Texas Water Resources Institute. Available electronically from