418 



to groundwater. OWRD's and irrigators' performance in the Stage 

 Gulch and Butter Creek critical groundwater areas of Northeastern 

 Oregon indicates that rates have influenced withdrawal practices. 

 Groundwater depletions in the Snake River Basin of Idaho also 

 suggest that rate-related factors have contributed to the rate of 

 groundwater depletion. 



In a 1984 study of irrigation from the Ogallala aquifer in 

 Eastern Colorado, researchers found that, 



"...setting electricity rates is tantamount to setting water 

 rates," and that "there is a direct link among energy price 

 and energy and water use." 19) 



The conclusion was that, 



"One way to prolong irrigation in eastern Colorado is to 

 implement electricity rates that reflect both the higher 

 incremental costs of energy and increasing scarcity of water 

 in the declining Ogallala aquifer." 20) 



2.4 Groundwater depletion adversely affects surface water, 

 ■unicipal and econoaic interests in the Basin. 



Surface effects of groundwater depletion have recently been 

 identified as issues of concern in an EPA survey of water quality 

 on the Basin. 21) 



Groundwater depletion also adversely affects various other 

 interests in the system: aquaculture in the Snake River Basin, 

 grazing in Eastern Washington, fish hatcheries, and, as described 

 in a forthcoming study of the food processing industry by the 

 Institute, industrial and municipal uses in every irrigator 

 community in the Mid-Columbia. E.g., the city of Walla Walla 

 recently petitioned Washinqton's Department of Ecology for a 

 moratorium on new withdrawals by agriculture in that sub-basin: 

 BPA's pumping discount contributes to that city's groundwater 

 problem. 



2.5 Depleted aquifers generate additional deaands for water 

 froB the hydropower base. 



In Umatilla County, Oregon, Echo and Stanfield are currently 

 petitioning Oregon Water Resources for additional withdrawals from 

 the mainstem to remedy failed municipal groundwater supplies and 

 recharge irrigators' groundwater. The cost to BPA ratepayers, in 

 hydropower opportunity costs, of that single withdrawal will be $4 

 million annually — a high price for ratepayers to pay for 

 irrigators' depletion of groundwater resources, and a price enabled 

 by BPA-subsidized pumping rates which have been instrumental in the 

 depletion of the resource, and which will continue to subsidize new 



