From The Pueblo Chieftain (Chris Woodka):
The agreement will mean $5.6 million in revenues to the Pueblo water board, as well as construction of water lines and a backup pumping station at Black Hills’ expense. The water board is expected to approve the agreement at its meeting today. Black Hills plans to have the plant running by June 2011, but there are provisions in the agreement that could lead to some sales of water later this year. Water is used for steam and cooling in electric generation. By 2012, the water board could be realizing more than $1 million a year in revenue for water service to the plant. The initial term of the contract is 20 years, but there are provisions for two 10-year extensions. “We don’t know yet what the demand will be,” said Terry Book, deputy executive director of the water board. Black Hills could take up to 2,530 acre-feet a year under the contract, but would be obligated to “take or pay” for 1,440 acre-feet, Book said. There would be a reservation fee as well for the full amount in case it is needed…
The water used in the Black Hills operation will be fully consumable, either from transmountain supplies or sources within the basin where the consumptive use has been transferred from agricultural purposes.
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