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7ri-County Water Conservency Disfict Septembcr 2, 20i [(iipdited September i9, ZOl l) Pa$e 2 of 7 Agenda Itcm 20c 5) An intercannection agreement between the District and San Miguel Power Assaciation or Tri-State Generation and Transmission Associatian. Background The Ridgway Dam and Reservoir are located on the Uncompahgre River abaui 6 miles norkh of the community af Ridgway, Colorado and one mile upstream of the confluence with Cow Cre�k. The reservair has a capacity of 84,410 acre-feet (AF} and stores waters of the Uncompahgre basin for use by the District, Uncompahgre Valtey W'ater Users Association (UVWUA) ar�d private land owners to deliver water for irrigation, municipal, domestic, and industrial needs. The Bureau af Reclamation (Bureau) began construction of Ridgway Dam in 19�8 as part of the Dallas Creek Praject, authorized by Cong,ress as part of the Colorado River Basin Praject Act of 1968. During construction the Bureau conducted an appraisal study that assessed the viability of adding a hydropower facility. The study, complefed in I981, concluded that it was technically feasible to incarporate a hydropower facility into the dam; howev�r, it was not econornically feasibie based on the market rates for power at that time. 'Fhis conclusion led to design modifications that cauld accommodate the fu#ure installation of a hydropower fa.ciiity. In 1987, the 333-foot tall, 2,465-foot long dam was completed and began storing water. In a letter to ths Bu�eau, dated August 18, 2009, the District requested tha# the Bureau begin the Lease of Power Privilege (LOPP) process for the development af hydropower at Ridgway Darn. On Juuxe 2, 2010, the Bureau published a IVvtice of Intent in the Federal Register that it would accept proposals, select a lessee, and confract for hydroelectric power development at Ridgway Dam. On December l, 20I0, the District subrnitted a formal application requesting the right ta develop hydropower at Ridgway Dam. On January 28, 201 l, the Bureau notified the District that they were selected to proceed with the LOPP. I.oau Feasibility Study The loan feasibiiity study titled "Ridgway Reservoir Micro-Hydra Project Loan Feasibility Stud}�', dated August l, 2011, was prepared by the District, with technical assistance from HDR Incorparated, and iegal assistance from Aaron Clay, Tri-Caunty general caunsel. The study was prepared in accordance with the �WCB guidelines and includes preliminary engineering and an engineer's estimate used to esiablish tlze total Project cast. Tri-County Water Canservancy Dlstriet The District, created on August I9, 1957, is a local govemmental entity formed under Title 37 of the Calarado Revised Statutes and is considereti a quasi-municipality by the State of Coloratio. The primary purpose %r creating the District was to provide an official agency to protnote participating groje�ts af the Upper Colorado St+nrage Projects Act in the counties o�the Uncompah�re drainage: Delta, Mantrose and Quray. The District, which is headquartered in Montrose, Cotorada, operates and maintains Ridgway Dam under cantract with the Bureau and vwns and operates a ntral dvmestic water distr�bution system. The D�strict began constructic�n of the distribution system in 1972 and currently serves 7,SQ0 taps across a se7vice area af 350 square mi�es. Distnict facili�ies ina%ude 6IU rniies uf distribution and transmission pipelines, 42 pump statians, Z1 wa�t�r starage tanks and approxirnately 220 pressure reducti�n static��s. t}n average, the District annua�Iy delivers 9,Q00 AF of water to damestic custoraers and over 11,000 AF to agricultural users.