Is ratesetting for CVP contractors different than other projects? Why?
A. Yes; the CVP Policy was designed specifically for the unique CVP which has many features distinct from other projects, primarily being an exceptionally large, complex and multipurpose project, providing multipurpose benefits over a very large geographical area. CVP is unique in that it is a series of smaller projects constructed in segments over a period of approximately 35 years, but for operational and financial purposes, it is treated as an integrated project pursuant to authorizing legislation. While CVP Ratesetting is not applicable to projects other than the CVP, many of the fundamental cost pooling and allocation concepts underlying the CVP ratesetting policy are also utilized in setting rates for non-CVP projects within the Mid-Pacific Region.
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