Click the link to read the release on the Mesa County website
November 10, 2026
The Colorado River supports farms, businesses, recreation, wildlife and communities across Mesa County. Some of the river’s flow is influenced by water rights held by the Shoshone Hydroelectric Plant in Glenwood Canyon, nearly 90 miles upstream from the Grand Valley.
Mesa County has committed $1 million toward a proposed purchase of those rights and is participating in a water court case that could shape how they are used in the future.
The Shoshone plant holds two water rights that together allow it to use up to 1,408 cubic feet of water per second when the rights are available.
In Colorado, older water rights have priority over newer ones. When a senior right is in priority and calls for the water, some upstream users with junior rights may have to reduce their diversions so water can reach the senior right.
The plant uses the water to generate electricity and then returns it to the river. The water is not consumed, but goes back into the river after making power. Its historic rights have helped support downstream river uses, including in the Grand Valley.
The Shoshone rights are tied primarily to generating electricity. If the plant permanently stops operating, the river’s historic benefits from the rights could be at risk.
The Colorado River District has agreed to buy the water rights from Public Service Company of Colorado, an Xcel Energy subsidiary. The purchase agreement is referred to as the $99 million transaction. If the sale goes through, Xcel would continue operating the plant and lease the rights from the River District while the plant remains in operation.
The River District, the Colorado Water Conservation Board and Public Service Company are asking the Water Court to add instream flow as an authorized use when the rights are not being used to generate power. Instream flow is water that stays in a river to support the natural environment.
The proposed instream flow use applies to a roughly two-mile stretch between the Shoshone diversion dam and the plant’s discharge outlets. The application does not ask for a new water right or for instream flow use downstream of that stretch.
The case is pending in the Colorado Water Court. The court must determine how the rights have historically been used, including how often they called for water and how much water was involved. It must also determine what limits and safeguards are needed to prevent harm to other water rights.
In January 2026, the County filed a statement of opposition in support of the application. That filing makes the County a party to the case so it can support the proposed change while advocating for safeguards that protect local water users.
No final court decision has been made. A trial is scheduled for July 2028. The purchase has not closed and current hydropower operations continue. The purchase also depends on other steps, including securing the required funding and receiving Colorado Public Utilities Commission approval.
The County’s interest is tied to the river’s importance to Mesa County’s economy and quality of life.
Mesa County will continue to participate in the case and share updates as the process moves forward.
