In this article, unless the context otherwise requires:

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1. "Board of directors" means the board having charge of the management and affairs of the district.

2. "Contribution related to plant for pumping" means an amount computed as follows: There shall be determined a ratio per cent which is the total kilowatt hours sold or used for pumping including all pumping for municipal purposes, but excluding those kilowatt hours not produced by the district or by sources contractually available to the district but which are delivered to the district for transmission and distribution to others, divided by the total kilowatt hours sold or used, such totals to be for the latest five calendar years. This ratio per cent, or ten per cent, whichever is the lesser, multiplied by the gross contribution, shall constitute the deduction for the contribution related to that portion of electric system devoted to pumping, provided that the ten per cent maximum limit imposed on this deduction by this paragraph shall not apply to any district which has a ratio per cent as defined in this paragraph in excess of seventy per cent.

3. "District" means any irrigation district, power district, electrical district or agricultural improvement district now or hereafter organized under the laws of this state which is directly engaged in the sale of electric power or energy other than for irrigation purposes.

4. "Total water costs" means one-third of the total sums of the following items for the latest three calendar years:

(a) The operating and maintenance expense attributable to watershed maintenance and protection, water production and development, storage, transmission, distribution or conservation, including administrative and general and related costs, but excluding depreciation.

(b) Repayment to the United States government of debt obligations resulting from prior expenditures on water department construction and the costs of which are not otherwise included in this paragraph 4.

(c) Water and watershed development and construction expenses incurred, which are not otherwise included in this paragraph 4 or which may become necessary to assure the construction of and to carry out the purposes or functions of any future reclamation or other water project in or for the state of Arizona.

5. "Total water costs devoted to municipal use" means total water department dollar costs times the percentage devoted to municipal uses. The percentage devoted to municipal uses shall be the ratio that total water for municipal uses for the latest three calendar years bears to total water delivered during such years, or nineteen per cent, whichever is the lesser. Municipal use shall be all water use other than for agricultural purposes.

6. "Residential" and "commercial and industrial" means "residential" and "commercial and industrial" exclusive of electrical power for agricultural pumping as defined in the uniform system of accounts prescribed for public utilities and licensees subject to the provisions of the federal power act, as amended.