Laserfiche WebLink
<br />will be in cash, the value of water dedicated from a reservoir in Colorado and the cost <br />associated with re-operating the Flaming Gorge Dam to benefit the fish. The bill also <br />contains provisions that allow power customers to contribute directly to capital project <br />construction and allow the federal government to expedite the completion of projects (thus <br />helping to control costs that would only increase over time). This is accomplished through <br />a loan by the state of Colorado to the Secretary of Energy. <br /> <br />If Congress diverted the revenues used to repay loans for higher interest project <br />features or increased power rates immediately to pay for Recovery Program capital <br />projects there would be an adverse impact on the Treasury and on power customers. <br /> <br />Therefore, Colorado is offering to loan funds to Western that could be used <br />immediately for capital projects with a repayment term and interest rate that would be <br />designed to minimize the impact of the repayment of the loan. For example, Colorado will <br />be repaid after all high interest loans are repaid. Western estimates that this will occur after <br />2011 and before 2057. This is consistent with the provisions of the legislation and the <br />MOD that require contract terms to be designed to minimize impacts on SLCA-IP power <br />rates. <br /> <br />CWCB Authority <br /> <br />Colorado River Recovery Program Loan Account (37-60-122.9 c.R.S.) <br /> <br />In 1998, the General Assembly created a new Colorado river recovery program <br />loan account within the Construction Fund. The account was created for the purpose of <br />making loans to the Colorado and San Juan River Recovery Programs for the construction <br />or improvement of certain water related projects in Colorado. The statute specifies that the <br />loans will be made under agreements with power users of the federal Colorado River <br />Storage Project. There is currently $_ million in the account. The board was given the <br />power to recommend loans from the new loan account to the General Assembly. The board <br />was also given the power to determine the interest rate and repayment provisions of the <br />loans. <br /> <br />Authority to Contract and Set Rates (37-60-119 C.R.S.) <br /> <br />The CWCB has the authority to undertake capital projects or loan moneys for <br />capital projects that will effect the more efficient use, development, and protection of <br />Colorado's water and hydroelectric energy resources. This statute allows the board to <br />recoup funds from entities borrowing funds from the CWCB to build projects as necessary <br />and reasonable to recover the board's capital investment, together with operational, <br />maintenance, and interest. Interest charges shall be recommended by the board at <br />between zero and seven percent on the basis of the project sponsor's ability to pay and <br />the significance of the project to the development and protection of the water supplies of <br />the state (emphasis added). The funds recouped are credited to Construction Fund. Once <br />funds have been loaned, the board may adjust the interest rate, extend the authorized <br />repayment period for any project, and defer one or more annual payments subject to some <br />statutory restrictions. <br /> <br />, <br /> <br />. <br /> <br />. <br /> <br />. <br />