BOARD00632

• Board Meeting Date: 8/16/1972
• Description: Agenda or Table of Contents, Minutes, Memos
• Board Meetings - Doc Type: Meeting

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by the legislature to initiate construction on the dam during this
fiscal year.

A combination of electrical power interests are proposing to con-
struct a large steam generating plant on the Yampa River a few miles
west of the town of Craig. These power interests are the Colorado-
Ute Electric Association, the Platte River Municipal Power Association,
the Salt River Project Agricultural Improvement and Power District
and the Tri-Sta~e Generation and Transmission Association. The pro-
posed plant would have an installed generating capacity of 700,000
kilowatts. Tentative plans call for doubling that capacity sometime
in the future. Construction on the plant is expected to start within
the next two years.

The plant would utilize the coal resources of Moffat County as a
source of energy. The cost of the plant is estimated at $264,000,000.
The annual operating budget of the plant is estimated at $4,200,000,
with a permanent payroll of about 270 people. The plant would there-
fore have a very significant i~pact on the economy of Moffat County.
During recent years, a decline in the population of the county has
taken place and the economy has been rather sluggish.

The water requirements for this plant can usually be met by utilizing
the direct flow of the Yampa River. However, during years of drouth,
the river flow will not be sufficient and some reservoir storage
will be required.

At our request, the power companies have explored the possibility of
storage on Elkhead Creek at the site which has been selected by the
Division of Nildlife. A feasibility study has been completed and
demonstrates that an enlargement of the proposed Elkhead Reservoir
would adequately serve for both the recreation and power purposes.
Water stored in the reservoir would be required infrequently for
power purposes.

The estimated cost of the small reservoir proposed by the Division of
Wildlife is $626,000. Because of its limited capacity, the reservoir
would have a relatively short life of about 41 years.

From the viewpoint of our staff. it is impractical to construct a
reservoir with that short a life.

It is now proposed that the reservoir be increased to a total capacity
of about thirteen and a half thousand acre-feet with an estimated

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