The CVP, located in California’s Central Valley Basin, is the one of the Bureau’s largest multiple purpose water projects. Conclusions

Water marketing costs have increased significantly, but we found no evidence that the costs were derived from activities other than normal O&M activities that are recoverable under applicable law. However, our analysis of the information provided to water customers confirmed that the customers were not able to determine whether (1) budgeted activities were ones that would actually be charged to them, and (2) budgeted amounts for the coming year’s activities represented increases in previous estimates.
Why GAO Did This Study

This report discusses the water marketing activities of the Bureau of Reclamation's Central Valley Project and their associated costs.

What GAO Found

Water marketing costs have risen significantly since 1989, but GAO found no evidence that the costs were associated with activities other than normal operation and maintenance activities that are recoverable from water customers under applicable law. GAO reviewed the information provided to customers and found that the customers were unable to determine whether (1) budgeted activities were the ones that would actually be charged to them and (2) budgeted amounts for the coming year's activities represented increases in previous estimates.