Economic and Conservation Evaluation of Capital Renovation Projects: Harlingen Irrigation District Cameron County No. 1 Canal Meters and Telemetry Equipment, Impervious-Lining of Delivery Canals, Pipelines Replacing Delivery Canals, and On-Farm Delivery-Site Meters
M. Edward Rister, Ronald D. Lacewell, Allen W. Sturdivant, John R. C. Robinson, Michael C. Popp, John R. Ellis
Initial construction costs and net annual changes in operating and maintenance expenses are identified for the capital renovation project proposed by Harlingen Irrigation District Cameron 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 each of the four components of the proposed project (i.e., canal meters and telemetry equipment, impervious-lining of delivery canals, 24" pipelines replacing delivery canals, and on-farm delivery-site meters). 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 each of the four components are aggregated into a composite set of cost measures for the total proposed project. Aggregate cost of water savings is estimated to be $31.37 per ac-ft and energy savings are measured at an aggregate value of $0.0002253 per BTU (i.e., $0.769 per kwh). In addition, expected values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the Public Law 106-576 legislation. The aggregate initial construction cost per ac-ft of water savings measure is $26.87 per ac-ft of water savings. The aggregate initial construction cost per BTU (kwh) of energy savings measure is $0.0001603 per BTU ($0.547 per kwh). The amount of initial construction costs per dollar of total annual economic savings is estimated to be -1.30.