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DNR C O L O R A D O 1313 Sherman Street John Hickenlooper,Governor <br /> T Denver,CO 80203 <br /> CO G Colorado Water Mike King, DNR Executive Director <br /> Conservation Board P(303)866-3441 <br /> Department of Natural Resources F(303)866-4474 James Eklund,CWCB Director <br /> TO: Colorado Water Conservation Board Members <br /> FROM: Kirk Russell, P.E., Finance Section Chief <br /> DATE: November 19-20, 2014 Board Meeting (updated November 21, 2014) <br /> AGENDA ITEM: 28b - Change to Existing Loans <br /> Northern Colorado Water Conservancy District - Granby Hydropower Project <br /> Introduction <br /> In May 2014, the CWCB approved a loan to the Northern Colorado Water Conservancy District (District) <br /> acting by and through its hydropower enterprise (Enterprise) for the construction of the 1.2 Megawatt <br /> Granby Hydropower Project (Project). The Project is located at the existing Colorado - Big Thompson <br /> Project Granby Dam and will utilize the existing releases from Lake Granby to the Colorado River. The <br /> total Project cost is estimated at $5,669,340. The District was approved for a loan to cover 90% of the <br /> project costs. A Project Data Sheet is attached with a location map and a Project summary. <br /> The District is requesting the CWCB modify the previous CWCB loan authorization to clarify that the <br /> pledged revenues for the loan are only those revenues from the Granby Hydropower facility and not <br /> revenues from the entire Enterprise as originally presented by staff to the Board. <br /> Staff Recommendation (Board Approved Staff Recommendation on November 20, 2014) <br /> Staff recommends the Board approve a loan not to exceed $5,135,183 ($5,084,340 for Project costs and <br /> $50,843 for the 1% Loan Service Fee) to the Northern Water Hydropower Water Activity Enterprise <br /> owned by Northern Colorado Water Conservancy District for the design and construction of the Granby <br /> Hydropower Project from the Severance Tax Perpetual Base Fund. The loan terms shall be 30 years at <br /> the Hydroelectric interest rate of 2.0% per annum. Security for the loan shall be a pledge of Granby <br /> Hydropower Plant revenues. <br /> Staff also recommends the addition of condition #3 below to the original requirements that must be <br /> met prior to the disbursement of loan funds: <br /> Contract Conditions <br /> 1. Execution of the Lease of Power Privilege <br /> 2. Execution of the Power Purchase Agreement <br /> 3. Modify the existing Enterprise debt to clearly define the Pledged Revenues used for the <br /> construction of the Carter Hydropower Plant. <br /> aF co <br /> .;;; , <br /> Interstate Compact Compliance •Watershed Protection • Flood Planning£t Mitigation •Stream &Lake Protection /a pj <br /> Water Project Loans&Grants •Water Modeling • Conservation&Drought Planning • Water Supply Planning <br /> `�ta75 <br />