Toledo Bend Reservoir will reach a new historic low in the very near future. Despite the low water level, the Sabine Parish River Authority has approved a contract to sell water from the reservoir to Texas once the reservoir recovers from the drought.
What is Toledo Bend Partners LP? A Delaware limited partnership owned by trusts and entities directly or indirectly owned by Billy Joe "Red" McCombs, Donald T. "Boysie" Bollinger, David Voekler, Aubrey Temple and their families.
Terms: 50-year primary term with a 49-year renewal.
Reservation fee: TB Partners is required to pay an escalating reservation fee that will generate $40.2 million during the 10 years succeeding the contract's effective date.
Water pricing: 25 cents per 1,000 gallons (as opposed to the SRA's current rate of 15 cents), generating $48.9 per acre-foot. The water purchase price is more than 25 times greater than what is earned from power sales.
Additional compensation: Added to water sales and reservation fee revenue, the SRA will receive its choice of a 20 percent of net profits, 1 percent of gross revenue or an annual Consumer Price Index adjusted increase in water price charges.