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<br />Ms.. Maryanne C. Bach <br />December 30, 2003 <br />Page 4 <br /> <br />Water's Integrated Resource Plan (IRP). The IRP process calls for updates of the plan <br />every five years. The IRP was revised and updated in 2002. <br /> <br />Water Recycling Project. In 2003, Denver spent approximately $50 million on construction <br />of its Water Recycling Plant and its water distribution system. The plant is slated to begin <br />operation in February 2004. The plant will divert effluent from the Metro Wastewater <br />Reclamation District wastewater treatment plant and further treat the effluent so it can be <br />delivered for irrigation and industrial uses. Plans call for construction in multiple phases. <br />Upon completion the plant will serve over 17,000 acre-feet per year at a maximum rate of <br />45 million gallons per day making it the largest reuse plant in the Rocky Mountain region. <br />Recycling water for non-potable uses will enhance Denver's successive use of Colorado <br />River water. Denver has contracted to deliver over 9,000 acre-feet of water from the <br />recycling plant. Xcel Energy has committed to 5,200 acre-feet for process and cooling <br />water at the Cherokee Power Plant. Also, the Rocky Mountain Arsenal has committed to <br />use about 1,200 acre-feet of recycled water and Denver International Airport will use <br />about 900 acre-feet per year. The remaining commitments are from irrigation and various <br />other municipal users. <br /> <br />Work continued in 2003 to secure decrees for Water Court applications that were filed in <br />Water Division No.1 in 2001 for water rights associated with the Water Recycling Project. <br />The water rights applied for include exchange and substitution rights, direct flow rights <br />and storage rights. The storage rights are for former gravel pits that are being converted <br />to storage facilities. Water released from these storage facilities will be used to replace <br />stream depletions when the quantity of Denver's reusable effluent is inadequate to meet <br />the Recycling Project's demands. Denver expects to obtain decrees for the requested. <br />water rights within five years. In the meantime, Denver Water can operate the Recycling <br />Plant under the State Engineer's exchange authority. Denver has met with representatives <br />from the State Engineer's Office about operating under their authority and plans to obtain <br />formal permission prior to operating the plant. <br /> <br />System Refinements <br />Lawn Irrigation Return Flow. In 2003, Denver completed its fourth year of a study to <br />quantify the amount of reusable return flows from irrigation of lawns within its service <br />area. Most of the necessary hydro-geologic data has now been collected and is being <br />incorporated into GIS mapping of Denver's service area. The irrigated areas of 3,000 <br />randomly selected homes and over 1,100 parks and schools have been measured, a <br />necessary step in determining deep percolation of irrigation water. Over $1.1 million has <br />been expended of the $2 million budgeted for the completed analysis, due at the end of <br />2004. Denver Water expects to file an application with the Water Court in early 2004 and <br />that a number of years beyond 2004 will be needed to negotiate a water court decree with <br />other water users permitting the legal use of these return flows. Once quantified and <br />decreed, the return flows will be an additional amount of reusable water available for <br />successive use such as exchange or delivery to its raw water facilities or for delivery to <br />other non-potable uses in the metro area. <br /> <br />