CT2017-2878 Approval Letter

• Contract/PO #: CT2017-2878
• Contractor Name: Orchard Mesa Irrigation District
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

* DNR COLORADO Grand Valley Power Plant Rehabilitation
CO y Colorado Water
Conservation Board Orchard Mesa Irrigation District
November 2016 Board Meeting
L 0 A N DETAILS -a --A1111,71,
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Project Cost: $5,200,000 `,
CWCB Loan (with Service Fee): $1,717,000 6 � 't
Loan Term and Interest Rate: 30 Years @ 2.0%
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Funding Source: Construction Fund 5 AI*
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BORR OWER TYPE 1.- 4 0.464 ,
Hydropower
PROJECT DETAILS
Project Type: Hydroelectric SIIOPW .
Average Annual Power Production: 17M kWh 7 r
The Orchard Mesa Irrigation District (District) and Grand Valley _Jf (�__
Water Users Association (Association)are each seeking a loan to LOC A T I 0 N
cover its cost share for the Grand Valley Power Plant (GVPP) County: Mesa
Rehabilitation Project. The GVPP is owned by the Bureau of
Reclamation and originally operated by Public Service Company Water Source: Colorado River
of Colorado(Xcel Engergy) in conjunction with the Cameo coal Drainage Basin: Colorado
fired power plant.The District and Association took operational Division: 5 District: 72
control of the plant when Xcel decided to cease its operations.
The District and Association equally split costs and revenues
from the GVPP under a Lease of Power Privilage with Reclamation and a Power Purchase Agreement with Xcel. In
addition to being a revenue source, the GVPP serves an importnant role in providing water to the "15-Mile Reach"
which has been designated by the Upper Colorado River Endangered Fish Recovery Program as critical habitat. The
non-consumptive hydropower water right ensures continued flows for this important stretch of river.
The goal of the Project is to bring the GVPP up to a sustainable operating condition and meet current electric and
safety standards. The GVPP was built in the early 1930s and has seen no major upgrades or modernization to date.
Under current operations, the"water-to-wire"efficiency is approximately 54%with a maximum generation output
of 2.5 MW. Calculations show as much as 4.1MW production should be feasible based on flow rate and available
head.
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Grand Valley'
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Colorado River
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Gunnison River-' 15 Mile Reach
Water Project Loan Program - Project Data Sheet