FS0025X Feasibility Study

• Contract/PO #: FS0025X
• Contractor Name: Upper Gunnison Uncompahgre Basin CWRPDA 1989
• Contract Type: Loan
• Water District: 0
• County: Archuleta
• Loan Projects - Doc Type: Feasibility Study

and were evaluated in greater detail. Preliminary layouts and cost estimates
were prepared for these two projects.
The Needle Point No. 3 project is located on the north side of Morrow
Point Reservoir and about one mile west of Curecanti Lreek. It has an average
gross head of about 1930 feet which can support an installed capacity of 720
MW. As shown on Figure 8.1, this project utilizes the existing Morrow Point
Reservoir for the lower reservoir. The estimated total capital cost of the
project is approximately 5577 million. This results in a unit capital cost of
about;$SOO.per installed kilowatt.
The Rocky Point pumped-storage project, located on the north side of
Taylor P.ark Reservoir, uses that existing reservoir as its lower reservoir.
As presently proposed by the project proponent, Natural Energy Resources
Company (NECO),. this project has an installed capacity.of 1000 MW computed on
the basis of generating power about eight hours per day, five days per week.
In order to put this project on the same basis as all the other projects
considered, it was necessary to increase the size of the upper reservoir to
provide sufficient storage to generate power 10 hours per day, five days per
week, which is the criteria established in this study. The general project
configuration is shown on Figure 8.2. The estimated cost is the same as
presented in .NECO's Federal Energy Regulatory Commission license application
with a modification to the upper reservoir cost. The estimate has also been
updated to the January 1989 price level. The estimated total capital cost for
this project is approximately E920 million. This results in a unit capital
cost of about $920 per installed kilowatt.
Comparisons between these two projects on the basis of the data presented
herein should be avoided since they have been studied to different levels of
detail. The Rocky Point project has been studied to full feasibility level of
detail, including geotechnical field and laboratory investigations. As a
result, the cost estimate for that project has a much lower risk of error due
to unknown or unforeseen conditions than the Needle Point No. 3 project, which
has been studied at a prefeasibility level.
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