Economic and Conservation Evaluation of Capital Renovation Projects: Hidalgo County Irrigation District No. 1 (Edinburg) - North Branch / East Main - Final
M. Edward Rister, Ronald D. Lacewell, Allen W. Sturdivant, John R. C. Robinson, Michael C. Popp
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. 1 to the Bureau of Reclamation and North American Development Bank. The proposed project involves installing 4.83 miles of multi-size pipeline to replace a segment of the North Branch / East Main canal. Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated 48-year 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 5,838 ac-ft of water per year and 3,293,049,926 BTUs (965,138 kwh) of energy per year. The calculated economic and financial cost of water savings is estimated to be $15.58 per ac-ft. The calculated economic and financial cost of energy savings is estimated at $0.0000392 per BTU ($0.134 per kwh).
In addition, expected real (rather than 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 $30.68 per ac-ft of water savings. The initial construction cost per BTU (kwh) of energy savings measure is $0.0000544 per BTU ($0.186 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -1.58.