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PROJECT SPONSOR The canal was started in 1881 by a group of German farmers. In 1884 all the stock in the company was issued to T. C. Henry. He borrowed $400,000.00 from the Travelers Insurance Company and at the same time he started to excavate the canal and some of the large laterals. In 1888 the Travelers Insurance Company foreclosed its mortgage, continued to enlarge and operate the system until 1930 when it was deeded to the Rio Grande Canal Water Users Association and became a mutual ditch company, owned and operated by the local ranchers and farmers. Construction of the canal was a major undertaking starting in1881 using 1,000 teams of horses and 3,000 men were employed. The canal consists of approximately 210 miles of canals and laterals to service around 300 stockholders and approximately 95,000 acres of land in three counties. It has 30 decreed priorities for water, totaling 1699.4 cfs. Almost 30% of the Rio Grande River is diverted into the canal during an average water year. It is by far the largest mutual ditch company in the San Luis Valley, if not the state of Colorado and the largest canal company in the state in terms of amounts of water diverted. Currently 100% of revenues are generated from shareholder assessments. The proposed hydropower facilities will increase revenues by approximately 2%. WATER RIGHTS The Rio Grande Canal is decreed for 1699.4 cfs with adjudication dates between 1896 and 1903, although this project does not propose to utilize the water rights in the canal. The hydroelectric facility will utilize flows in the Rio Grande River. Flows will not be diverted from the river; the turbine will be installed within the existing river flow. This project will not need to obtain a water right to operate. This has been confirmed with the Division Engineer. WATER AVAILABILITY Flows in the Rio Grande River were analyzed over the past 10 years. The average daily flow rates are plotted on a flow exceedance curve below. The proposed hydropower facility will use a maximum of 225 cfs, and is not expected to operate during the coldest three and a half months of the year. The chart below shows the portion of the river flows that will flow through the turbine. An analysis was also performed to determine the annual power production based on the past 10 years, using actual data, not averages. This analysis showed that even in the driest years, the hydropower facility was able to produce sufficient revenue to cover expenses. Rio Grande Canal Water Users Association � Project Sponsor