PROJ00509

• Contract/PO #: C153500
• Contractor Name: San Miguel Water Conservancy District
• Contract Type: Loan
• Water District: 0
• County: San Miguel
• Bill Number: XB 99-999
• Loan Projects - Doc Type: Feasibility Study

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San Miguel Canyon Pumped Storage Hydropower Project is an optional addition to Alternatives G, H, or W, The

San Miguel Canyon site is located northwest of Norwood and would include a reservoir on the San Miguel River

and a smaller reservoir located on the rim of the canyon.

Evaluation of Alternatives

The four alternatives and the San Miguel Canyon hydropower project were evaluated at a reconnaissance
(preliminary) level of detail using the estimated water yield of each alternative and estimated costs. The estimated
capital costs for Alternatives G and L are $2.9 million and $4.1 million, respectively. When these two alternatives
are combined in Alternative H, the capital costs increase to a total of $8.1 million. In Alternative W, the capital
costs increase to a total of $18.2 million due to the inclusion of additional improvements.

The annual cost and the cost per acre-foot for each alternative were estimated using six different financial

scenarios which were selected to show the impact of various financing arrangements. The six financing scenarios

are:

Scenario

Descriotion

A

One-half 5 percent loan and one-half 10 percent bonds.

B

One-half 5 percent loan and one-half 8 percent bonds.

C

All financing at 5 percent.

D

One-half 5 percent loan and one-half interest-free loan.

E

One-half 5 percent loan and one-half grant.

F

One-half 5 percent loan and one-half bonds paid by power revenues.

The annual cost was calculated as the annual debt service for each alternative under each financing scenario plus

the annual cost of operation, maintenance and replacement. The unit cost per acre-foot was calculated by

dividing the annual cost for each alternative by the improved water yield. Table S-l displays the potential service

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