Economic and Conservation Evaluation of Capital Renovation Project: Hidalgo County Irrigation District No. 2 (San Juan) - Relining Lateral A – Preliminary
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Initial construction costs and net annual changes in operating and maintenance expenses are identified for a single-component capital renovation project proposed by Hidalgo County Irrigation District No. 2, (a.k.a. San Juan) to the North American Development Bank (NADBank) and Bureau of Reclamation. The proposed project involves relining “Lateral A” with a geomembrane and shotcrete cover. Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated useful life for the proposed project. Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 2,542 ac-ft of water per year and 551,738,646 BTUs (161,705 kwh) of energy per year. The calculated economic and financial cost of water savings is estimated to be $74.49 per ac-ft. The calculated economic and financial cost of energy savings is estimated to be $0.0003698 per BTU ($1.262 per kwh). In addition, expected real (vs nominal) values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The initial construction cost per ac-ft of water savings measure is $57.76 per ac-ft of water savings. The initial construction cost per BTU (kwh) of energy savings measure is $0.0002661 per BTU ($0.908 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -14.29.
Rister, M. Edward; Lacewell, Ronald D.; Sturdivant, Allen W.; Robinson, John R.C.; Popp, Michael C. (2003). Economic and Conservation Evaluation of Capital Renovation Project: Hidalgo County Irrigation District No. 2 (San Juan) - Relining Lateral A – Preliminary. Texas Water Resources Institute. Available electronically from