Southeastern Coloraodo Water Conservancy District 2002 Annual Report

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Year 2002 Highlights of the Water Activity Enterprise Return Flow and Enterprise -Owned Project Water Sales Return flows from the first use of Project water were limited by the small amount of Project water imported and sold in 2002 due to the drought. There was 17,933 acre -feet of Return flow sold in 2002, with much of that coming from 2001 first use Project water. The Enterprise only sold 2,205 acre -feet of Enterprise -owned Project water. The Enterprise Board decided to hold back about 3,000 acre -feet for emergency sales associated with the drought. There were a few sales later in the year from this held back water as some municipalities experienced shortages. Return flow water sold for $6.00 per acre -foot, with a $0.50 per acre -foot surcharge added on for Safety of Dams (SOD) repayment. Enterprise -owned Project water sold for $6.00 per acre -foot with a $1.25 for agricultural entities and $2.00 for municipal entities per acre -foot surcharge added on for SOD and Water Activity Reserve Fund. Preferred Storage Options Plan The Preferred Storage Options Plan (PSOP), languished during the year as the legislation was held up in committee at the House of Representatives. The legislation failed to move because of political opposition at a couple of levels. It is hoped that the stalemate will be resolved in 2003 allowing the legislation to move forward. Enterprise Establishes a Water Activity Surcharge The Enterprise established a Water Activity surcharge in 2002. This reserve fund has several facets to it. It will begin a reserve fund for large O &M projects, a reserve fund for Winter water spills due to the PSOP, as well as preparing for the possible takeover of O &M. This surcharge will be included with the Safety of Dams surcharge on all water and storage revenues. Safety of Dams Nears Final Accounting In November of 2002, Reclamation sent out an updated accounting of the Safety of Dams. This was our first update since March of 2000. The Enterprise's portion of the expenses during those two years amounted to $72,554. Reclamation is now entering the final piece of the SOD work and the Enterprise should have a final accounting of the SOD within the next two years. Enterprise Budget With the PSOP slowing, revenues and expenditures for the Enterprise dipped well below budget. The year 2002 saw an increase in the surcharges placed on water and storage revenues (see above), however, surcharge revenues dipped in response to the weak water sales. The Water Bank administration was delegated to the Enterprise in 2002. Operations of the Water Bank will now be included in the Enterprise accounting. The Enterprise continued its help with the Arkansas Valley Conduit. This year saw the completion of the initial study. The major contributor this year was the Colorado Water Conservation Board, which paid $ 71,387 in 2002. •23•