Market Adaptation to Climate Change: Water/Power Trade-offs in Idaho

1. Market Adaptation to Climate Change: Water/Power Trade-offs in Idaho Don Reading Climate Impacts Group University of Washington Idaho Climate & Forecast for 2010 October 22, 2009 http://www.cses.washington.edu/cig/

3. Market Adaptation Focus on ‘Stability’ NOT ‘Rigidly’ Lower Transaction Costs [Economic, Legal, Political, etc.] with in the side boards of Societal Constraints

4. An Example - Idaho Small Independent Hydro Power (PURPA) Idaho Commission Approved 1st Contract in 1981 Rate: 6.5 cents per kWh, 10 MW or less, 35 years

5. An Example - Idaho PURPA rates are set by the IPUC at utilities ‘Avoided Cost’ Current PURPA rate is 7.8 cent per kWh, 10 MW, 20 years [@ gas @ $7.80; current gas $3.95] Therefore the cost of power production has not increased significantly in the last 30 years

6. An Example - Idaho Fish Farming Price and production fairly constant over past 30 years http://www.agecon.msstate.edu/Aquaculture/workshop_1/State_of_US_Aquaculture.PDF

7. Water Values [annual rates] 1980  $2.00 acre ft. [water bank] 1980  $20.00 acre ft. [‘typical’ PURPA equivalent] 1980  $15.00 acre ft. [‘typical’ fish farm – fish value only] 2009  $60.00 acre ft. [fish flush, recharge, mitigation] 2009  $25.00 acre ft. [‘typical’ PURPA equivalent, high gas] 2009  $15.00 acre ft. [‘typical’ fish farm – fish value only]

8. Example of Result of Shifting Water v. Power Values Idaho Water Resource Board authorizes $26 million for; Fish Farm Cattle ranching facility Two small hydro projects 90 cfs fresh water 4.5 cfs geothermal 215 cfs reuse right from creek Used for; City of Twin Falls water supply Ground water users mitigation Costs; Shared with City of Twin Falls Revenue from hydro project used to pay for purchase in the short run

9. CAMP Phase I Actions • Groundwater to Surface Water Conversions • Managed Aquifer Recharge • Demand Reduction • Buyouts, buy-downs and/or subordination agreements • Rotating fallowing, dry-year lease agreement, CREP • Crop mix modification • Surface water conservation • Pilot Weather Modification Program

10. Subject: Re: Veterans for American Power Bus Tour coming to your state As a veteran, I believe that any veteran lending their name, to promote the leftist propaganda of global warming and climate change, in an effort to he or control more of the wealth created in our economy, through cap and tax type policies, all in the name of national security, is a traitor to the oath she took defend the Constitution of our great nation! Remember Benedict Arnold before giving credibility to a veteran who uses their service as a means to promote a leftist agenda. Drill Baby Drill!!! For Liberty, Daryl Metcalfe State Representative (PA) Veteran U.S. Army“ http://thegreenagenda.blogspot.com/2009/10/pa-state-rep-daryl-metcalfe-veterans.html

11. Don Reading, Ph.D. 6070 Hill Road Boise, ID 83703 Ph: 208.342.1700 Fax: 208.384.1511 dreading@mindspring.com Climate Impacts Group University of Washington King Building 4909 25th Avenue NE Seattle, WA 98195 Ph: 206.616.5350 Fax: 206.616.5775 karpov@u.washington.edu