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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />'. <br />I <br />I <br />I <br />I <br /> <br />1. The amount of additional pumped storage capacity that might economically <br />displace alternative forms of power generation. <br /> <br />2. The investment cost per kilowatt of installed capacity at which pumped storage <br />could economically begin to replace other forms of power generation, and <br /> <br />3. The potential timing of the pumped storage additions for Colorado. <br /> <br />Pumped Storage Description <br /> <br />Pumped storage hydropower is one of several methods of generating peaking power. <br />Other methods include the use of emerging energy storage technologies in various <br />stages of commercial development, combustion turbines, and conventional <br />hydropower. Pumped storage projects use relatively low-cost thermal, base load off- <br />peak power to pump water from a lower reservoir to an upper reservoir. During peak <br />electric demand periods, when energy costs are highest, the water flows through <br />turbines as it is released to the lower reservoir, generating power. Because of losses <br />in the system, it takes about 1.4 times as much energy to pump water to the upper <br />reservoir than is generated when the flow is reversed. The inherent benefits of <br />pumped storage hydropower, however, include conservation of higher-cost gas and <br />oil, hydro-thermal integration, improved generating unit efficiencies, substitutes for <br />some spinning reserve requirements, and potential overall savings in electric costs. <br /> <br />Colorado's mountainous terrain and deep river valleys provide a number of potential <br />sites for combining pumped storage hydroelectric development with conventional <br />water storage. Figure 1-1 provides a graphic view of a typical pumped storage project. <br /> <br />E-2 <br />