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Grand Valley Water Users Association Agenda Item 14c <br /> November 16-17, 2016 Board Meeting (Updated November 17, 2016) <br /> Page 3 of 5 <br /> water deliveries to delinquent shareholders, issuing liens on the shares (which become a lien on the <br /> land), and the eventual foreclosure and sale of said lands. It also has the power to make and enforce <br /> all rules and regulations concerning the distribution of water within the system. The board has the <br /> authority to enter into debt without shareholder approval for maintenance and repair projects. <br /> Water Rights <br /> The water right associated with the GVPP is shown in Table 1. The United States, through Reclamation, <br /> is the owner of the hydropower water right, as well as the other water rights associated with the Grand <br /> Valley Project. <br /> TABLE 1: GVPP WATER RIGHT <br /> Name Amount Appropriation Date Adjudication Date Water Court <br /> Case No. <br /> 400 CFS <br /> Grand Valley Project (irr. season) 2/27/1908 7/25/1941 CA5812 <br /> (Hydropower) 800 CFS <br /> (non-irr. season) <br /> The GVPP water right is a part of the "Cameo Call" which is a call comprised of a series of water rights <br /> on the Colorado River owned by five entities: the Association, the District, the Grand Valley Irrigation <br /> Company, the Palisade Irrigation District, and the Mesa County Irrigation District. This call is important <br /> because it assists the state in complying with its obligations under the Colorado River Compact, and in <br /> maintaining acceptable lake levels in Lake Powell. <br /> Project Description <br /> The goal of the Project is to bring the GVPP up to a sustainable operating condition and meet current <br /> electric and safety standards. Under current operations, the "water-to-wire" efficiency is <br /> approximately 54%with a maximum generation output of 2.5 MW. Calculations show as much as 4.1 MW <br /> production should be feasible based on flow rate and available head. The Association and District <br /> received engineering proposals and feasibility studies for plant rehabilitation. Based on the received <br /> proposals, Sorenson Engineering was selected to be the design-build engineer. <br /> Alternative 1 - No Action: This alternative was not selected because the GVPP is projected to be <br /> operable for only a few more years if not rehabilitated. In addition to being a revenue source for the <br /> Association, the GVPP serves an important role in providing water to the "15-Mile Reach" which has <br /> been designated by the Upper Colorado River Endangered Fish Recovery Program as critical habitat <br /> where in-stream flows are crucial by being directly responsible for providing up to 400 cfs of water <br /> throughout the critical base flow period. <br /> Alternative 2 - Rehabilitate without Upgraded Production: The PPA is for power production to <br /> 3.5 MW. Accordingly, the engineer presented an alternative to design upgrades and efficiencies to only <br /> provide to the current PPA limit. However, this alternative was not selected because the capital cost <br /> to generate up to 4.1 MW is very low and provides additional generation potential if the current PPA is <br /> amended, or when the PPA expires in 5 years. Additionally, any power produced above 3.5 MW can <br /> currently be sold at the avoided cost rate. <br /> Alternative 3 - Rehabilitate with Upgraded Production: Project components of this alternative <br /> include: (1) recoat two 78" diameter penstocks, scroll case and draft tubes; (2) replace turbine <br /> components, disassemble and rewind generators; and (3) replace existing controls, switchgear, and <br /> substation with equipment that meets current NESC clearances and standards. This alternative will <br />