@CSUtilities may offer water to outlying communities in El Paso County

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

From The Colorado Springs Independent (Pam Zubeck):

Should the city be a good neighbor and share its water with those who don’t live within its boundaries?

Yes, says the Colorado Springs Utilities Policy Advisory Committee, which after a year of study has formed draft recommendations that call for removing barriers for bedroom communities to hook up to city water and wastewater systems. The recommendations — due for delivery to the Utilities Board, composed of City Council members, on March 21 — would lower the cost of hookups by up to 26 percent while opening the door to long-term agreements.

So what’s in it for city ratepayers? Plenty, according to Dave Grossman, Utilities strategic planning and government supervisor. New sales could help pay off debt for the $825 million Southern Delivery System (SDS) pipeline from Pueblo Reservoir, erase headlines that give the city a bad name and help outside water providers’ groundwater supplies last longer…

Still, the move raises a lot of questions. Why should city ratepayers share their resources with those who chose to live outside city limits, didn’t pay the costs of major Utilities projects and don’t pay city property taxes? Why allow outsiders to become dependent on city water, when the city will likely need that water for its own population in the future? And, at a time when the city is trying to attract more development within city limits, why give away one of the city’s best bargaining chips?


Until 2010, the city didn’t sell water outside its limits. The policy changed to accommodate sales for three years or less to districts that experienced water shortages or other problems. But they paid 150 percent of city customer charges. There are 11 water districts, six water and wastewater districts and four wastewater districts in El Paso County. Not all would necessarily want to buy city services, but some would.

Many rely largely on groundwater from the Denver Basin, which is rapidly depleting. Despite state and county measures to assure supplies last, the water table continues to drop.

Utilities has had outside deals with Cherokee Metropolitan District east of Powers Boulevard and Donala Water & Sanitation District east of the Air Force Academy. Cherokee needed water temporarily after court decisions prevented its use of some wells, while Donala uses the city’s pipes to convey water it obtained from Pueblo Board of Water Works.

Water districts form such a patchwork that Sean Chambers, who’s worked for several districts and now runs Chambers Econ & Analytics, has teamed with Peak Spatial Enterprises to create an online tool to compile district information in seven counties from Denver to Pueblo. Funded in part by the Colorado Water Conservation Board, it will feature maps, water rates, sources, conservation practices, water quality reports, consumption and the like, listed by address, for use by the public and the real estate industry.

But what if those districts had access to Springs Utilities’ supply? The city’s roughly 140,000 water customers use about 40 million gallons a day during the winter and more than 100 million gallons a day in the summer, Grossman says. If pressed, the city could provide well over that amount short term, he says.

Besides completing SDS in 2016, which increased the city’s water supply by a third, the city’s abundant supply is linked to conservation measures taken since 2001 that reduced per-person consumption from 130 gallons a day to 82. The city’s system also has capacity; the Bailey Water Treatment Plant, part of SDS, runs at about 10 percent capacity.

As for wastewater, the city has plenty of capacity, Grossman reports, for the next 30-plus years.

More than a year ago, Utilities began looking into whether extending service could benefit everyone. For one thing, the Advisory Committee found, water issues anywhere in the Pikes Peak region impact the city’s reputation and the region’s economy.

For example, in 2016, it was found that groundwater wells had been contaminated with perfluorinated chemicals (PFCs) from firefighting foam at Peterson Air Force Base. The chemicals fouled wells serving Fountain, Widefield/Security and other areas…

Under the committee’s recommendation, outside users would still pay more than city customers — 120 percent of the normal charge for water and 110 percent for wastewater. Currently, the city charges 150 percent for both…

Districts aren’t apt to buy their entire supplies from the city, however, Chambers says. That’s because their goal is conjunctive use — a combination of wells and surface water; if districts can buy water during wet years and pump from their wells in dry years, the aquifer gets a rest and a chance to recharge, he says.

That’s the concept behind WISE (Water, Infrastructure and Supply Efficiency), a coalition of 12 entities, including Denver Water, Aurora Water and the South Metro Water Supply Authority created after the 2002 drought.

Chambers notes that outside sales could help the city retire debt and fund maintenance and operations. Having attended most of the committee’s meetings, Chambers attests the city’s top goal is to serve existing customers. “Utilities has been very protective,” he says, “saying regionalization will not happen unless it’s a benefit to the citizen owners and ratepayers.”

For example, Grossman notes the committee wants to include options for conveying and treating water, but that no outside contracts would be executed if they’d erode the city’s targeted storage benchmarks.

Agencies clarify status of famed ‘Toilet Bowl’ trout fishing area, anglers will continue having access

The ‘Toilet Bowl” remains open to anglers fishing from shore, but remains closed to water activities, including paddle boarding, free diving, swimming and wading

Here’s the release from Colorado Parks and Wildlife:

Colorado Parks and Wildlife, city of Aspen, Bureau of Reclamation, Eagle County Sheriff’s office and the U.S. Forest Service are confirming anglers will continue having fishing access to the ‘Toilet Bowl from the shore; however, paddle boarding, free diving, swimming, and wading will remain prohibited.

Officials stress the water, located at the base of the Ruedi Dam on the Fryingpan River, is turbulent and subject to sudden changes in depth and flows. In addition, they caution the area has underwater hazards people are unable to see.

The five government agencies met last week to address social media rumors claiming the Toilet Bowl would no longer be accessible to anglers.

“Much of the confusion stems from varied interpretations of the existing signs which were placed to prevent unsafe activities and protect dam infrastructure” said District Wildlife Manager Matt Yamashita of Basalt. “It was made clear during the meeting that the intent is to prohibit in-water recreation in the deep portion of the Toilet Bowl section, for safety and security reasons. Anglers standing on the shore are not the concern.”

Yamashita says the city of Aspen and Bureau of Reclamation will update signs in the area to clarify restrictions.

“Ultimately, for anglers, not much has changed,” he said. “They can continue to fish there, as they always have. Going forward, we ask everyone to follow the rules and regulations as signed, and be sure to respect all current and future signage.”

Officials recently repaired the fence around the hydroelectric plant, replacing a section damaged by a vehicle. Workers also placed posts for a gate they will install this spring. The gate will help keep vehicles away from hydroelectric plant structures.

“The fence and the gate only restrict vehicle access, not foot traffic,” added Yamashita.

The famed fishing hole is popular with anglers, many who travel from around the world to catch the large trout that thrive in the pool.

Southeastern District approves $28.8 million budget

Fryingpan-Arkansas Project via the Southeastern Colorado Water Conservancy District

Here’s the release from the Southeastern Colorado Water Conservancy District (Chris Woodka):

The Southeastern Colorado Water Conservancy District Thursday approved a $28.8 million budget for 2018, which includes the District’s general fund, Enterprise water fund and a newly created hydropower fund within the enterprise.

The general fund totals $16 million, most of which reflects Fryingpan-Arkansas Project payments to the Bureau of Reclamation. Those payments total $13.1 million, including $7.4 million from property taxes in parts of nine counties for Fry-Ark Contract obligations, and $5.3 million in payment from the Fountain Valley Authority in El Paso County. Other payments to Reclamation include $265,000 for excess-capacity contracts and an estimated $117,000 for winter water.

The District assesses a 0.940 mill levy, of which 0.9 mills goes toward the Reclamation Fry-Ark Contract; 0.035 mills for operation; and 0.005 mills for refunds and abatements adjustments. Tax collections total about $7.8 million.

Operating revenues and expenditures for the District are expected to top $2.5 million in 2018.

The water activity enterprise, the district’s business arm, has a $2.7 million budget in 2018. Enterprise funds are generated from water sales, surcharges on water storage or sales and contractual arrangements.

The hydroelectric fund supports an electric generation plant under construction at Pueblo Dam. The Colorado Conservation Board approved a $17.2 million loan in 2016 toward the $20 million project. The remainder of the project is funded by the enterprise. Expenditures in 2018 are expected to be nearly $10 million.

Construction began in October 2017, after purchase of power details were finalized. The power plant should begin operations in 2018, with the first full year of electricity production in 2019.

Update on new hydro generating facility at Pueblo Dam

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

From HydroWorld.com (Elizabeth Ingram):

Construction of the 7.5-MW Pueblo small hydro project is well under way, with operations expected to begin in the spring of 2018, according to the Southeastern Colorado Water Conservancy District.

The plant is the first hydroelectric feature added to the Fryingpan-Arkansas Project since the completion of the 233-MW Mount Elbert pump-back hydroelectric plant at Twin Lakes in 1981.

This new facility, on the Arkansas River, will be able to generate electricity at flows ranging from 35 cubic feet per second to 810 cfs. The powerhouse will contain three turbine-generator units and will use the authorized release from the dam to the Arkansas River to generate an average of 28 million kWh of electricity annually, which will equate to about $1.5 million in average revenue per year. Electricity generated will be purchase by the city of Fountain and by Colorado Springs Utilities. After 10 years, Fountain will purchase all of the power generated for the following 20 years.

The total capital cost of the project is estimated to be $19.5 million, which includes a $17.2 million loan from the Colorado Water Conservation Board.

The planning and permitting process for this hydro facility began in 2011. Because this facility is located at Pueblo Dam, owned by the U.S. Department of Interior’s Bureau of Reclamation and will connect to a pipeline also owned by Reclamation, the project required a Lease of Power Privilege. The preliminary LOPP was granted in February 2012, and the final LOPP was granted in April 2017.

The final design of the facility was completed in June 2016, and the construction contract was awarded to Mountain States Hydro in August 2017.

The district says construction complete and commissioning will occur in August 2018.

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.

@CSUutilities hydroelectric plant at Pueblo Reservoir will supply Fort Carson

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

From The Colorado Springs Gazette (Conrad Swanson):

A hydroelectric plant is planned for construction downstream from the Pueblo Dam to generate renewable energy for Fort Carson. Developers are just waiting for the signal to start building.

The plant would significantly increase the amount of renewable energy Fort Carson consumes, fitting with the post’s “Net Zero” goals of becoming more environmentally friendly.

The Colorado Springs Utilities board will consider adding a military sales tariff during its meeting Wednesday. The tariff would cover costs for Utilities to act as an intermediary, selling the power to Fort Carson after buying it from the Southeastern Colorado Water Conservancy District, which would build and operate the plant, said Utilities spokeswoman Amy Trinidad.

Adding the tariff is the “last step” before the district can begin construction, said spokesman Chris Woodka.

“We’ve been ready to pull the trigger on this since January,” he said.

Currently, 8 percent of Fort Carson’s electricity is generated on-site through renewable sources such as solar panels, post spokeswoman Dani Johnson said. She could not say whether the post buys any renewable energy from off-site sources.

But Trinidad said Fort Carson does buy some renewable energy from Utilities. She could not say how much, citing customer privacy. The proposed hydroelectric deal would make up 7 percent of the post’s annual electricity purchase from Utilities, she said.

If the tariff is added, the proposal then will go before the City Council, consisting of the same members as the Utilities board, next month. If the council approves the move, construction on the plant can begin, Woodka said.

The plant would cost about $19 million, most of which comes from a loan the district took out, he said. In the years to come, energy sales are expected to cover the costs and eventually generate funds.

The plant’s construction will not have a financial impact on Utilities ratepayers, Trinidad said.

The plant is expected to generate up to 7.5 megawatts of electricity, Woodka said. Fort Carson will buy half of that, and Fountain Utilities will buy the other half.

The plant could be operational by May 2018, a peak time for generating hydroelectricity because of the high volume of water flowing from the Pueblo Dam, Woodka said.

Utilities then would buy the electricity, which will be transmitted onto its grid, and then sell it to Fort Carson without marking up the price, Trinidad said.

In the past, Fort Carson bought renewable wind energy through Utilities under short-term contracts, which have since expired, said Steve Carr, Utilities’ key account manager for Fort Carson. The pending hydroelectricity contract would last until the end of 2027.

Fryingpan-Arkansas Project via the Southeastern Colorado Water Conservancy District

From the Southeastern Colorado Water Conservancy District via The Pueblo Chieftain:

A hefty snowpack and relatively full municipal storage means farms will get a larger than usual share of Fryingpan-Arkansas Project water this year.

About 80 percent, or 44,000 of the 55,000 acre-feet allocated by the Southeastern Colorado Water Conservancy District board Thursday, will go to irrigation companies throughout the Arkansas River basin. In addition, agricultural interests were allocated 20,000 acre-feet in return flows. A total of 28 ditches and three well groups will benefit.

That water comes on top of about 12,000 acre-feet leased earlier this year by Pueblo Water to farms, ditches or well associations…

“The extra water which the municipalities have no place to store is always welcome in Crowley County and the Arkansas Valley,” said Carl McClure, a Crowley County farmer who heads the allocation committee of the district.

The Southeastern allocation is about 25 percent above average, thanks to a snowpack that remains heavy and is still growing. The Fry-Ark water is imported from the Upper Colorado River basin through the 5.4-mile long Boustead Tunnel into Turquoise Lake.

More than half of the water is reserved for cities, but if they have no place to store it, it is allocated to agriculture. Fry-Ark water sells for $7 per acre-foot, plus surcharges that pay for programs that benefit water users. By comparison, Pueblo Water leases averaged $55 per acre-foot this year.

The district expects to bring more than 68,000 acre-feet into the Arkansas River basin this year, but prior commitments such as the Pueblo fish hatchery, evaporation and transit loss adjustments are made before the amount of water sold can be determined.

The Southeastern district guarantees 80 percent of the water, holding back some in case the runoff fails to meet projections. The Boustead Tunnel can only take a certain amount of water at one time and only when sufficient flows, as determined by court decrees, are available on the Western Slope. The remaining 20 percent is delivered when the district determines flows will be sufficient.

That should not be a problem this year, as the Bureau of Reclamation projected imports to be about 77,000 acre-feet, well above the amount Southeastern factored in.

For municipal allocations, the Fountain Valley Authority was able to take about 7,000 acre-feet, or half of its entitlement. Pueblo Water and Pueblo West are not seeking any water. Cities east of Pueblo claimed 3,132 acre-feet, while cities west of Pueblo were allocated 1,164. Most chose not to request their full allocation.

Allocating Fry-Ark water is the primary function of the Southeastern District, which was formed in 1958 to provide supplemental water to the Arkansas River basin.