Electric utility rate deregulation can have disproportionate impacts on water-intensive crops, which have historically relied upon pressurized irrigation technologies and surface water resources. Based on a case study of agricultural growers in southern California, the paper models the impacts of utility rates considered in the Western Area Power Administration's Sierra Nevada Customer Service Region. The study was performed as part of the 2004 Power Marketing Program Draft Environmental Impact Statement. The empirical results reflect linear-programming estimates of the income transfers from growers to energy providers based on county-wide coverage of 13 junior and senior irrigation districts and short-run production possibilities of 11 irrigated crops. Transfers of income from growers to energy suppliers occur through their losses in producer surplus.
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