The board approved the 2026 FO rates and allocation methodology based on a 30% State Water Project allocation and supplemental purchases. The melded fixed obligation (FO) rate — combining SWP water at $630/AF with supplemental supplies at $445/AF — comes to $535/AF before groundwater service charge credits and $502/AF after applying approximately $4 million in credits. SWP FO after those credits was set at $562/AF. Because the resulting allocation of 1.72 acre-feet per acre falls below the 2.0 AF/acre threshold (72% of contract agricultural water), this year's allocation will be calculated on allocation acres, not straight CAW. Staff is also developing a declining credit schedule for water returns — growers who return supplemental water late in the year may not receive full FO credit. Details will be included in supplemental water agreements going out shortly.
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