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Irrigators want neighbors to help pay for McConaughy water

Posted: Wednesday, October 03, 2007
HOLDREGE, Neb. (AP) -- A group of Lake McConaughy irrigators wants the board that controls the lake's water to consider imposing fees on irrigators in nearby counties who don't pay for water that helps replenish the underground aquifer beneath their fields.

Earlier this week, the Central Water Users group urged the Central Nebraska Public Power and Irrigation District board to consider the new fees on groundwater users in Gosper, Phelps and Kearney counties in addition to the rate hikes already being considered for the district's irrigators.

Budget deficits prompted the district's board to consider its first rate increase since 1997. The district expects to spend $3.9 million more than it will bring in during 2007, and next year a deficit of nearly $3.6 million is expected.

The district's board plans to vote on the proposed irrigation rate increase in December.

Tom Schwarz with the water users group said he knows the district needs more revenue, but he thinks it also needs to find a more equitable way to spread the costs among everyone who benefits.

"If the whole of this gets dumped on surface water users, I don't think we can afford it," Schwarz said.

The district provides water to about 106,000 acres in Phelps, Gosper and Kearney counties through a system of canals, and the underground aquifer benefits from the water passing through those canals.

John Thorburn, general manager of the Tri-Basin Natural Resources District, said he recognizes the groundwater recharge benefits from the district's system.

But he said Tri-Basin directors, who oversees groundwater management in Gosper, Phelps and Kearney counties, have said they won't support recharge fees unless a plan is developed to intentionally recharge the large underground lake known as the Ogallala Aquifer.

Low water levels at Lake McConaughy have reduced the district's revenue from power generation at its four hydroelectric plants and limited the amount of water the district can provide to irrigators.

The proposed 2008 budget shows the district has generated between $4.4 million and $4.7 million annually from electricity in recent years. That's significantly lower than the $8.7 million the district generated from electricity in 1996.

The district's reserve funds have been diminished because of the deficits.

In 2000, the district had about $44 million in its unrestricted reserve fund. Today, the district has $28.6 million in that fund.

Last month, the Central Nebraska Public Power and Irrigation District board voted to deliver a reduced amount of water to irrigators. The district plans to deliver only 6.7 inches of water over an eight-week period in the 2008 growing season, compared with the normal 15-18 inches over 12 weeks.

The allocation was 6.7 inches in 2005, 8.4 in 2006 and 6.7 this year.

The district said Monday that Lake McConaughy held 467,400 acre-feet of water, which is about 27 percent of operating capacity.

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