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Denver Water's customers, the reliability problem is a present day problem specific to the Moffat Collection System and Treatment Plant. During a severe drought, even a single severe dry year, Denver Water's raw water customers as well as the Moffat Treatment Plant can run out of water. If the Moffat Collection System runs short of water, Denver Water's ability to meet its customer demands is seriously compromised, The shortcomings of the Moffat Collection System water supply were clearly demonstrated during the drought of 2002, In April 2002, raw water system operators determined that the Moffat Collection System would run out of water by July if Denver Water made required deliveries to treated water and raw water customers from the Moffat Collection System. Many emergency measures were taken to reserve as much water supply as possible in Gross Reservoir in the event the drought continued into 2003 and beyond. One such measure was to shut down the Moffat Treatment Plant during much of the year to reserve storage in Gross Reservoir, If the South System water supply had been compromised by any significant outage, Denver Water would not have been able to meet its customers' water demands. Simply stated, constant vigilance and a fair amount of luck were required to keep the South System running almost perfectly to meet even the drought-reduced customer demand, The emergency operations of 2003 do not provide a permanent solution to the reliability problem because they were wasteful, uneconomical and relied on a large measure of luck. Additional water supplies provided to the Moffat Treatment Plant and raw water customers would be needed to permanently address the reliability problem. The Vulnerability Problem Denver Water's collection system is unacceptably vulnerable to natural and manmade disasters and system failures that would cause loss of critical component that supplies South System water to customers, This is because 90 percent of available reservoir storage and 80 percent of available water supplies rely on the unimpeded operation of Denver's South System, Loss of a portion or all water supply from the South Collection System results in a need to provide more water from the Moffat Collection System than is available, resulting in a potential inability to meet customers' water needs, The critical components that supply south side water are: · Collection system - Roberts Tunnel, Cheesman Reservoir, Strontia Springs Reservoir, Conduit 26 (which supplies Foothills Water Treatment Plant), Conduit 20 dam and pipeline which serves Marston Reservoir and Marston Treatment Plant. · Foothills and Marston Treatment Plants. · Transmission Lines - Conduit 27 and Conduit 20, the main arteries for transporting South System water supplies from Foothills and Marston Treatment Plants. 5 C:\Documents and Settings\vyp\Local Settings\Temporary Internet Files\OLKI SO\MoffatSystemIO0603.doc