Water economics should separate water assets from revenue-producing power assets.
Desalination plants, pipelines, pumps, storage, generation, transmission and shared infrastructure have different users, revenue streams and useful lives. The model should allocate costs instead of charging every energy asset entirely to water.
Cost per acre-foot can then reflect the resources actually attributable to producing and delivering water.
Cost allocation does not make capital costs disappear; financing and risk still have to be carried by someone.