Rationale for Power Rates Charged by the Central Valley Project to Pacific Gas and Electric Company

The Central Valley Project (CVP) is a large multiple-purpose water resources development project in California consisting of 19 dams with related water conveyance systems, power generation, and transmission facilities. The project's primary purpose is to provide irrigation water to the Sacramento and San Joaquin Valleys. Its secondary purposes are to provide municipal and industrial water, flood control, fish and wildlife enhancement, and hydroelectric power generation. In December 1976, the Department of the Interior announced an adjustment in the rate for Northwest power sold to the Pacific Gas and Electric Gompany (PG&E) by the Central Valley Project retroactive to April 1, 1976.