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<br /> 32 <br />2025 Amended and Restated WSA 21945395.2 <br />1. Irrigation Well Owner Replacement Water shall be limited to a cumulative <br />maximum of 1.76 mgd and shall be delivered only in volumes necessary for mitigating well <br />interference impacts as provided in the Project MMRP. The supply of Irrigation Well Owner <br />Replacement Water by the SFPUC shall not be considered a new water supply commitment to <br />Retail Customers or Wholesale Customers under Section 3.13 of this Agreement. The annual <br />volume of Irrigation Well Owner Replacement Water supplied shall be metered and allocated as <br />water from the Regional Water System during shortages between Retail Customers and <br />Wholesale Customers in proportion to and consistent with the provisions of the Shortage <br />Allocation Plan. All revenue received from Irrigation Well Owners for metered deliveries of <br />Irrigation Well Owner Replacement Water shall be considered revenue related to the sale of <br />water and allocated between Retail Customers and Wholesale Customers on the basis of <br />Proportional Water Use. <br />2. All Project capital costs incurred by the SFPUC in complying with the <br />mitigation measures in the Project MMRP shall be considered Regional capital costs under <br />Section 5.04 of this Agreement. <br />3. Operations and maintenance expenses incurred by the SFPUC in <br />maintaining Project mitigation assets described in the Project MMRP shall be considered <br />Regional transmission and distribution expenses under Section 5.05.D of this Agreement. Well <br />pumping expenses that are required to be paid by the SFPUC in the agreements with the <br />Irrigation Well Owners shall be considered Regional pumping expenses under Section 5.05.B of <br />this Agreement. <br />4. Any wheeling charges imposed by California Water Service Company for <br />delivery of Irrigation Well Owner Replacement Water shall be considered Regional transmission <br />and distribution expenses under Section 5.05.D of this Agreement. <br />F. The SFPUC will audit (1) operation and maintenance expenses submitted by the <br />Participating Pumpers, and (2) well pumping expenses submitted by the Irrigation Well Owners, <br />for reimbursement to confirm that such costs were incurred, respectively, as a result of (1) <br />operating Project Facilities and Shared Facilities for a Regional benefit and (2) complying with <br />mitigation obligations in the Project MMRP. Costs associated with the use of Project Facilities <br />or Shared Facilities for Direct Retail or Direct Wholesale purposes, or that do not otherwise <br />provide Regional benefits, shall not be included in the Wholesale Revenue Requirement. The <br />SFPUC is responsible for resolving disputes with the Participating Pumpers and Irrigation Well