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Ridgway Reservoir Micro-Hydro Project Loan Feasibility Page 9 of 42 Transmission It is anticipated that the turbine-generators will generate electricity at 4,160 volts. It is anticipated that an interconnection will be established with the Tri-State115-kV transmission line located about 0.8 miles north of the Project. The interconnection will be made in accordance with Tri-State requirements and specifications. PROJECT BENEFITS The life of the facility is expected to extend well beyond 50 years. After repayment of debt from project construction, the project will provide the District with a long-term reliable income stream that will supplement income from water sales and distribution, helping to offset potential future water rate increases. The project is expected to have a life well beyond the financing term; sales of energy after retirement of project debt will be burdened only by annual operation and maintenance expenses, periodic refurbishment of major equipment and regular payments to the Bureau of Reclamation for the Lease of Power Privilege. Assuming annual generation from the project of 22.6GWh and an emissions factor of 2,000 lbs of CO2/MWh yields an environmental benefit of approximately 40,000,000 pounds of COZ emissions avoided annually. The National Hydropower Association commissioned a study by Navigant Consulting to estimate the job creation benefits of hydropower installation using the following value chain elements: project development, component manufacturing, project deployment, and operations and maintenance. For micro-hydro projects, Navigant estimated direct job creation benefits of 6 Full Time Equivalent jobs per megawatt installed. Utilizing the Navigant figure yields benefits from the 7 MW project of approximately 40 jobs, including both direct and indirect (additional information regarding the Navigant study is available on the National Hydropower Association website at www.hydro.org). . PROJECT ALTERNATIVES The purpose of the Ridgway Dam Hydropower Project is to provide a clean, renewable energy source that is locally controlled that will generate revenue for Tri-County Water. The revenue generated by the Project will be used for purposes including repaying the funds which will be borrowed from Tri-County Capital Reserves, minimizing water rates for Tri-County Water customers, and repaying the costs of the Da11as Creek Project. In previous studies for hydropower development at Ridgway Dam (conducted in 1985, 2002 and 2009), the District identified and evaluated several alternative powerhouse configurations and locations. Other alternatives have included use of only a single turbine, to one alternative that included three turbines of equal size. These alternatives were analyzed to determine conceptual-level costs and beneiits and then compared to identify the preferred option, which is described above. The District will continue to refine this proposal as it gathers more detailed information about the site and the transmission grid.