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I:. " through the comlJined efforts of several communities, the NCDI-JA can provide a safe, highly reliable source of good quality domestic water at an affOl"c1uhle cost to all its participants, At the same time, the NCD\1A would not infringe upon the prerogat ivc of each community to control their O\~n V1ilter rights and. service responsibilities. The t\CU:':^ would operate prillloll'ily within the lJorue."s of the Northern Colo.'ado Water Conservancy District and I'/ould util ize Colo.,'ado-5ig Thon:pson Project water. The NCDI1A 1"vU I d funct ion on the revenues from two types of servi ce charges: (1) Subscription and (2) Consumption. One charge would be a subscription charge and would cover all costs uf construc- tion. Each municipality would pay its share of theso costs on the basis of the amount of water it had subscribed for. This demand charge would be determined in the following manner: If a participant subscribes for 10% of the capacity of the treatment plant, then that participant would pay for 10% of the totdl cost of the treatment plant. In a s imi I ar manne", if the demand subscribed for by a participant represents 10% of the first 10 miles of transmission line, 20% of the next 15 miles, and 30% of the next 5 miles, then that particpant would pay for 10% of the first 10 miles, 20% of the next 15 miles, and 30% of the next 5 miles of transmission line. No participant ~;ould be required te pay for any facilities downstream of the point ~lere its branch trans"iission line ties into the main transmission line. At the same time, any facilities which benefit only one Pdrticipant will be financed only by that one partiCipant. In this \~ay, each participant will pay only for those f ac i I it i es that arc used to de liver water to them. The second charge l'iOuld he a service charge haseu on the amount of water actually ~Ollsu'l'ed lJy a 111'~lJlber. This charge would COVI'r power costs, chemical 4