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.

Greg Hobbs: Ruedi Reservoir and Dillon Reservoir May 5, 2017

Greg Hobbs just can’t stay in the city.

Ruedi Reservoir (Fryingpan River) west of the Divide from upstream through the reservoir

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Dillon Reservoir (Blue River) looking east to the Divide south around the reservoir to the west at Frisco)

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Greg Hobbs

@SenBennetCO: Budget continuing resolution includes $3 million for the Arkansas Valley Conduit

Arkansas Valley Conduit Comanche North route via Reclamation

Here’s the release from Senator Bennet’s office:

Colorado U.S. Senator Michael Bennet today announced that several Colorado priorities are included in the $1.1 trillion omnibus budget deal to fund the government through September 30, 2017.

“This bipartisan agreement removes the threat of a government shutdown and makes significant investments in education, infrastructure, and science programs that are important to Colorado,” Bennet said. “During a time of unprecedented mistrust in government, this agreement is an example of a responsible, bipartisan solution to maintain important investments in our country.”

Below are several Colorado priorities secured by Bennet and included in the budget deal:

  • Provides $3 million for the Arkansas Valley Conduit, six times more funding than previous years. Bennet worked with the Senate Appropriations Committee to include this funding to ensure work on the Conduit will continue.[ed. emphasis mine]
  • Restores year-round eligibility for the Pell Grant program, which will allow college students to continue their coursework during summer months. Bennet has pushed for year-round Pell grants since it was cut in 2011.
  • Provides $150 million for the Denver RTD Eagle P3 project to complete the next phase of the Denver metro area’s light rail transportation project.
  • Fully funds the Payment in Lieu of Taxes (PILT) program, which provides Colorado counties with funding to carry out vital services like fire and police protection, school construction, and road maintenance. Bennet has consistently advocated for full funding of this program.
  • Increases funding for the National Renewable Energy Laboratory (NREL), located in Golden. The $92 million in funding is a $30 million increase from the previous budget.
  • Increases investments in NASA, including $2.15 billion for the Space Launch System and $1.35 billion for the Orion Crew Exploration Program. Dozens of Colorado aerospace companies are involved in these projects.
  • Increases funding for the Transportation Security Administration, including more money for security in unsecure areas and funding to help reduce long wait times at airports. Bennet worked with Denver International Airport to secure this funding to support the airport’s efforts to enhance security and improve the efficiency of its screening process.
  • Includes language that will allow Colorado businesses to hire returning workers through the H-2B visa program. More than 300 Colorado businesses rely on the H-2B visa program to hire temporary non-agricultural workers for seasonal jobs that are vital to our state’s economy.