Economic and Conservation Evaluation of Capital Renovation Projects: Edinburg Irrigation District Hidalgo County No. 1 - 72" Pipeline Replacing Delivery Canal and Multi-Size Pipeline Replacing Delivery Canal

Abstract

Initial construction costs and net annual changes in operating and maintenance expenses are identified for the capital renovation project proposed by Edinburg Irrigation District Hidalgo County No. 1 to the North American Development Bank (NADBank). 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., 72" pipeline replacing a segment of delivery canal along the "Curry Main" and multi-size pipeline replacing a segment of delivery canal along the "North Branch / East Main"). 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 $29.87 per ac-ft and energy savings are measured at an aggregate value of $0.0000595 per BTU (i.e., $0.203 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 $50.90 per ac-ft of water savings. The aggregate initial construction cost per BTU (kwh) of energy savings measure is $0.0000777 per BTU ($0.265 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -2.01.