PROJ00273

• Contract/PO #: C153368
• Contractor Name: Cache LaPoudre Water Development Study
• Water District: 0
• County: Larimer
• Bill Number: SB 81-439
• Loan Projects - Doc Type: Feasibility Study

The financial evaluations are summarized on the following table. Th.e base
data section of the table displays the total capital costs and the annual
operation, maintenance and replacement costs (in 1982 dollars) fOI: each
alternative along with the projected on-line date of the alternative assuming
that planning activities begin in mid-1983 and are followed by desi'~n and
construction.

The total capital costs were escalated for inflation throughout the
assumed planning, design and construction period. 1he escalated costs were
then used to estimate total investment costs and the annual cost of assumed
debt retirement.

The table illustrates the total investment cost (capital costs escalated
for inflation) and the annual costs (the annual amortization requirement plus
operation, maintenance and replacement) under the two funding approaches. The
table also provides the estimated cost burden on peaking power (in 1982
dollars) . The cost burden is expressed as a composite value of the peaking
power output including both a capacity and energy component. It is expressed
both as a cost per kilowatt-hour of energy production and as a cost per
kilowatt~year based on installed capacity.

The numbers displayed on the table clearly demonstrate the impact of
inflation and the difference in costs under the two financing approaches. 1he
two financing approaches were selected to illustrate two extremes of a broad
range of potential financial arrangements which would have to be investigated
further in more detailed feasibility studies.

F. COIICLUSIORS AND RBCXWIDIDATIOIIS

The present study has developed useful information about large storage
reservoirs in the upper Cache la Poudre Basin. Although the uncertainties
associated with both the future demand for peaking power and the need for new
reservoirs prevent one from arriving at firm conclusions as to what would or
would not be feasible 10-15 years from now, the projects examined in this
study appear to have been sufficiently analyzed for the present.

On the other hand, given the limitations placed upon the geographical
scope of this study, many questions remain unanswered concerning the future
water resources needs of the Cache la poudre Basin and the alternative means
available to meet var ious water resource developnent and management
objectives. Questions regarding future water and power demands, the future of
irrigated lands, the condition of the existing plains reservoirs and
alternatives to large new storage projects in the canyon (which alternatives
may include smaller capacity reservoir project(s) in the upper basin) all need
to be addressed before decisions can be reached on what future projects and
management actions might be feasible and desirable.

The best means of addressing these questions would be a carefully designed
study of basin-wide scope (upper and lower basin) formulated with the
participation of all interested parties in the basin. In March 1983, the
Board recommended that the General Assembly authorize the expenditure of not

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