A reader forwarded the Water Agency's Jan 5 Water Supply Update [PDF]. (Sorry for the delay; I am still cleaning out my inbox!)
It's got lots of great detail on precipitation, reservoirs, etc., but this bit is sensational in its bad news (and confirmation of the rumors I have blogged on here and here):
Drought Water Bank: Details on cost and payment terms are still being negotiated, but we have heard that the purchasers offering price is now $275/AF. At least some sellers we have talked to in Northern California want $350/AF. Those prices translate to canal‐side prices of about $380‐$450/AF for SWP contractors, and $430‐$505/AF for south of delta CVP contractors. In addition, it appears that this water will be conveyed later than some crop demands, if/when capacity exists, during the July‐October timeframe...Bottom Line: Southern California cannot count on imported water to relieve the drought in 2009. Unless water managers raise prices, they will impose rationing. Prepare for annoyances and short tempers.
Following a request for interest by the Department of Water Resources, a demand quantity of approximately 600,000AF was generated. Of this, approximately 180,000AF was from CVP contractors south of the delta, and the remaining 420,000AF of demand came from the state water contractors. There is some concern that the available supply in northern California may be closer to 150,000AF.
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