Southern Delivery System update: Colorado Springs Utilities inks the final contracts with the Bureau of Reclamation

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From The Colorado Springs Gazette (Debbie Kelley):

The U.S. Bureau of Reclamation on Wednesday signed final contracts with Colorado Springs Utilities, the city of Fountain, Pueblo West Metropolitan District and the Security Water District, Kara Lamb, a Bureau spokeswoman said Friday. “All of the issues have been resolved, and the construction of the pipeline can go forward,” she said…

Construction for the pipeline’s first phase is expected to cost $880 million, plus financing costs of 40-year bonds, Rummel said. Utilities issued $180 million in Build America Bonds in September, to pay for construction for this year and 2012. Water rate hikes will help fund the project. Two 12 percent increases, one of which took effect in January, have been approved so far. The connection to two new man-made reservoirs, Upper and Lower Williams Creek reservoirs, is in a future phase and expected to raise the cost of the system…

The final sign-off by participants comes after a 60-day public comment period for 38-year storage, conveyance, and exchange contracts. The period ended April 25.

More Southern Delivery System coverage here and here.

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