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I I I I I I I I I I I I I I I I I I II Mr. Uli Kappus, P.E. Colorado Water Resources and Power Development Authority Page Two The plan could be developed in stages. A financial analysis was performed on an initial stage which includes one storage reservoir and the ten recreation components. The total capital cost of Stage 1 would be approximately $32 million based on the Tomichi Creek Reservoir. The analysis showed that the total annual cost associated wi th Stage 1 woul d be about $1. 25 mi 11 ion. The annual income from the project is estimated to be about $140,000 but the project would result in significant economic benefits to the Study Area through increased tourism (estimated to be about $4.45 million). Construct i on of Stage 1 wi 11 also result in year-round increased streamflows which would result in fish and wildlife benefits. Although the recommended plan is not financially feasible based solely on direct project income, its benefit-cost ratio is attractive when all project benefi ts are i ncl uded. Therefore, several methods of generating income in addition to direct project income were investigated as a means of meeting annual project costs. These methods included the following: formation of a special recreation district with taxing powers; use of authorized, but as yet unappropriated Aspinall Unit mitigation funds; and the lease or sale of land adjacent to and in the vicinity of the proposed reservoirs. It was concluded that, if implemented, these methods could provide sufficient income to repay the annual debt service of the recommended plan. The study also evaluated potent i a 1 pumped-storage hydroel ectri c and transmountain diversion projects which, when combined with the preferred in-basin development plan, would result in a more comprehensi ve project. Thi s was eval uated because it was thought that a more comprehensive development plan might be more financially attractive than an in-basin plan by itself provided that benefits and costs could be equitably shared between the project participants. The study effort showed that numerous potential pumped-storage hydroelectric sites exist in the Study Area and that several of these sites appear to be economically attractive. These projects may adversely affect existing reservoirs that are included in the project and future studies, if conducted, should evaluate these potential impacts. Transmountain diversion projects that would divert water from the headwaters of the Taylor Ri ver and from Bl ue Mesa Reservoi r were investigated. There are significant institutional and environmental considerations involved with potential out-of-basin diversions. These may i ncl ude: perfecting water rights, changi ng exi st i ng water rights or exchange agreements, changing operations of existing facilities, and a wide array of environmental issues. There may also be other potential constraints identified if the study proceeds into a more detailed phase. For purposes of analysis, preliminary evaluations were made of alternative export plans which might yield i 1000311 5