In case you missed it: BDCP Cost and Yield Deception

FOR IMMEDIATE RELEASE: Wednesday, June 26, 2014
Contact: Steve Hopcraft 916/457-5546; steve@hopcraft.com; Twitter: @shopcraft; @MrSandHillCrane; Barbara Barrigan-Parrilla 209/479-2053 barbara@restorethedelta.org; Twitter: @RestoretheDelta

In case you missed it…
BDCP Cost and Yield Deception
Jeff Michael’s Valley Economy Blog

June 23, 2014

Last week, BDCP released what it describes as “cost and yield information,” although I didn’t see any new information in the glossy newsletter summary with the pretty bird. The newsletter makes 2 main claims: 1) BDCP provides reliable water for $5 per month, and 2) BDCP is cheaper than the alternatives. Both of these claims are deceptive and are based on invalid comparisons and inaccurate assumptions. …

…I see six major problems with these comparisons.
1. Subsidized BDCP costs are compared to unsubsidized alternative costs. …
2. BDCP costs are reported as the change to the average cost of the State Water Project whereas alternative costs are reported at the project level. …
3. Uncertain BDCP costs and yields are compared to alternatives with known or much more certain costs and yields. …
4. Alternatives are more reliable than BDCP. …
5. Lower-cost alternatives are ignored. …
6. Ignores technological advance in alternative water supplies. …

To read the entire blog go here:
http://valleyecon.blogspot.com/2014/06/bdcp-cost-and-yield-deception.html

Jeff Michael is the Director of the business Forecasting Center and Associate Professor, Eberhardt School of Business, University of the Pacific

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