This report discusses the water marketing activities of the Bureau of Reclamation's Central Valley Project and their associated costs. Water marketing costs have risen significantly since 1989, but GAO found no evidence that the costs were associated with activities other than normal operation and maintenance activities that are recoverable from water customers under applicable law. GAO reviewed the information provided to customers and found that the customers were unable to determine whether (1) budgeted activities were the ones that would actually be charged to them and (2) budgeted amounts for the coming year's activities represented increases in previous estimates.
Recommendations for Executive Action
|Bureau of Reclamation||1. The Bureau of Reclamation's Mid-Pacific Region's Regional Director should ensure that the appropriate regional personnel provide additional budget information to customers at the beginning of the budget process that would enable them to determine whether the budgeted activities are ones that will actually be charged to them.|
|Bureau of Reclamation||2. The Bureau of Reclamation's Mid-Pacific Region's Regional Director should ensure that the appropriate regional personnel provide additional information during the subsequent ratesetting process to enable customers to determine whether the amounts estimated for budget activities represent changes in prior year estimates.|