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Long Term Excess Capacity, and How & Works <br />Long Term Excess Capacity contracts (described as Re- operations in the PSOP Report) will <br />allow a municipal entity to store non - project water in its carryover project space on a long -term, <br />If and When basis. <br />The carryover project storage space for Municipalities within the Southeastern Colorado Water <br />Conservancy District is allotted in four groups — Fountain Valley Authority (FVA) [78,000 AF], <br />Pueblo [31,200 AF], Arkansas Valley entities East of Pueblo [37,400 AF], and Arkansas Valley <br />entities West of Pueblo [12,400 AF]. Entities may store their project water that they are <br />allocated each year in this space, free of charge until May 1 of the year following allocations. If <br />the entity does not use all of its project water during the year, it may continue to store that water <br />subject to evaporation loss and a Carryover Surcharge to help pay for Safety of Dams charges <br />and to the Enterprise O &M Account for future O &M charges. <br />In many years this space that is reserved for Project water goes unfilled and unutilized. <br />Therefore, there is space available to store other waters. Currently, entities are allowed to <br />request and purchase one -year If & When storage contracts for non - project water. Water stored <br />in this space is subject to spill before any other water in the project, but after the spill of If & <br />When water stored by out of basin entities. <br />Long -term excess capacity contracts would allow entities within the District to submit only one <br />request for the ability to store non - project water in this space. This process would provide a <br />significant savings in both time and money for anyone needing space to store non - project water <br />on a regular basis. The storage would be in Fryingpan Arkansas Project facilities, but the water <br />would be able to be used upstream of Pueblo, through exchange contracts or releases from <br />upstream reservoirs. In the Spill Order, this non - project water would spill after Out of District <br />entities' water, but before Winter Water. (For municipal entities within the District's allocation <br />of carryover storage space, their non - project water would also spill after any Winter Water stored <br />in excess of 70,000 AF.) <br />If an entity stores Project Water return flows in this space, this water would not be subject to <br />spill. <br />Once the long -term contract is received, the entity would have to pay the cost for the entire <br />contracted space each and every year for the life of the contract regardless if they did not use the <br />space or if the water were spilled. The rate charged for this storage is a discounted rate that takes <br />into account the fact that it will spill sometimes. This storage rate is based on calculations done <br />by the Bureau of Reclamation. Payments on these contracts would be credited towards the Fry - <br />Ark Project repayment account. <br />Each entity is responsible for the management of its water in this space. Direct flow water is not <br />eligible for storage, unless there is a separate storage decree for the water or compliance with <br />other Colorado law, such as the substitute water supply plan statute. <br />