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Ridgway Reservoir Micro-Hydro Project Loan Feasibility Page 5 of 42 TRI-COUNTY WATER OVERVIEW Tri-County Water Conservancy District was created on August 19, 1957. The main purpose for the organization of the District was to provide an official agency to promote participating projects of the Upper Colorado Storage Projects Act in the counties covered by the District. The original area to be served consisted of the Uncompahgre drainage in Ouray, Montrose, and Delta counties. The District, which is headquartered in Montrose, Colorado, operates and maintains Ridgway Dam. The dam and reservoir are located on the Uncompahgre River about six miles north of the community of Ridgway, Colorado and about a mile upstream of the river's confluence with Cow Creek. The dam stores waters of the Uncompahgre River for water supplies for irrigation, municipal, domestic, and industrial use. The District encompasses most of the Uncompahgre River Basin. Tri-County Water is a local governmental entity formed under Title 37 of the Colorado Revised Statutes and is considered a quasi-municipality by the State of Colorado. Tri-County Water operates and maintains Ridgway Dam under contract with the Bureau of Reclamation. Tri- County Water owns and operates a rural domestic water system that was originally constructed by the District in 1972. It now delivers potable water to 7,500 taps through 610 miles of distribution and transmission pipelines. This system delivers water to over 350 square miles and spans 3,000 feet in elevation. Tri-County Water operates 42 pump stations, 21 water storage tanks and approximately 120 pressure reduction stations on the potable water distribution system. Tri-County Water employs 23 staff inembers and is governed by a 15 member Board of Directors which is appointed by a State District Court. There are 5 Board members from each of the three counties served: Delta, Montrose, and Ouray. The Board elects a new president, two vice presidents, and secretary/treasurer annually. PROjECT OVERVIEW Project Historv Steps were taken during the construction of Ridgway Dam to modify the design to facilitate future installation of hydropower. Since its inception, Ridgway Dam has been the subject of several hydropower studies. In 1981, Reclamation completed an appraisal study for adding hydropower facilities to the dam and concluded that it was technically feasible. However, due to the market at that time, it was not economically feasible. Furthermore, detailed studies were recommended although none were completed. In a separate report, Reclamation concluded that the environmental impacts of adding hydroelectric power to the dam would not be significant or adverse. The District conducted separate studies of the hydropower feasibility at Ridgway Dam in 1984 but chose at that time not to proceed due to questions about feasibility. The City of Aspen approached the District suggesting a partnership to build a hydro project at Ridgway Dam and offered to support additional feasibility work. Feasibility was re-examined in December 2002.