Southeastern Colorado Water inks agreement with Fountain and Fort Carson for hydro project

The new north outlet works at Pueblo Dam — Photo/MWH Global

From The Colorado Springs Gazette (Conrad Swanson):

The Southeastern Colorado Water Conservancy District and the U.S. Bureau of Reclamation, which owns and operates the Pueblo Dam, signed an agreement last week allowing for the soon-to-be-built plant to connect to the dam, Chris Woodka, the district’s issues management program coordinator, said in a release.

The agreement was signed after the Colorado Springs City Council unanimously approved the creation of a military sales tariff on Tuesday. The tariff will cover costs for Colorado Springs Utilities to act as an intermediary, buying power from the district and selling it to Fort Carson.

With all the necessary agreements in place, the district hired Mountain States Hydro, LLC, to build the $19 million plant, Woodka said. Construction will begin in September and the plant should be operational by the spring.

Half of the electricity from the plant, estimated to be up to 7.5 megawatts, will be sold to Fort Carson and the other half will be sold to Fountain Utilities.

The plant is expected to generate about $1.4 million in revenue each year, Woodka said.

From The Pueblo Chieftain (Jon Pompia):

“This is a monumental moment in the history of the district,” said Jim Broderick, the district’s executive director. “We have been working to put all of the pieces in place since 2011. Now that this project is coming to fruition, it represents not only a sustainable income stream for our stakeholders, but develops a clean source of power for the future.”

Added Chris Woodka, the district’s issues management program coordinator, “The Lease of Power Privilege clears the way for the hydropower plant to connect to Pueblo Dam, a federally owned structure. Mike Ryan, director of the Great Plains Region for Reclamation, signed the lease Friday.”

In order to satisfy all federal requirements related to the project, members of the district have been working for the past 18 months to put a series of other agreements in place.

“The district has contracted with Mountain States Hydro, LLC, to build the plant,” Woodka said, “with construction to begin in September. It is scheduled to be completed during the fall and winter months when releases from Pueblo Dam generally decrease.”

It’s anticipated that the plant will be online by spring 2018.

The plant will cost about $19 million to build. Last year, the district secured a $17.2 million loan from the Colorado Water Conservation Board, with the district’s business enterprise providing matching funds.

Over time, those funds will be paid off by revenues from the sale of power.

For a decade, power from the plant will be purchased by the city of Fountain and by Colorado Springs Utilities for use at Fort Carson.

“After that, Fountain intends to purchase all of the power for at least 20 more years,” Woodka said.

The plant will generate up to 7.5 megawatts of power by using three turbines capable of producing power from 35 to 800 cubic feet per second of flow in the Arkansas River. Water will pass through a connection that was built into the service line for the Southern Delivery System, then into the Arkansas River.

Projections by district staff show that an average of 28 million kilowatt hours will be produced annually, with about $1.4 million in average revenue per year.

This money will be used to pay off the CWCB loan and to satisfy contractual agreements with the Bureau of Reclamation, as well as a carriage agreement with Black Hills Energy. All remaining funds will go to enterprise activities, including the Arkansas Valley Conduit.

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