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0033:Hl SlOOtARY The purpose of this study is to determine the value of electric power in Colorado and to assess the effects on the'production of small-scale hydroelectric power in Colorado of possible increases in streamflow resulting from cloud seeding. Small-scale production (less than 80 megawatts) is important to Colorado because many of the state's mountain and Western Slope streams provide suitable small-scale sites. Also, the U.S. Congress recently passed legislation that provides economic incentives to producers of small-scale hydroelectric power. The Value of Electric Power in Colorado Since the market for electric power in Colorado is regulated (mainly by the Colorado Public Utilities Commission), the value of.power is not determined by the usual market forces. To place a value on power we examine wholesale markets and estimate costs of supplying power if the utilities supply it themselves. We conclude that the value of power in Colorado ranges between about 1.4 and 12.0 cents per kilowatt hour. depending on the circumstances in which the energy is produced and used. Small-Seale Hydro in Colorado A number of developers of.sma11-scale hydroelectric sites have responded to the incentives of the Public Utilities Regulatory POlicy Act of 1978 (PURPA) and have begun to develop facilities in Colorado. No sites have yet been completed. however, and technical details on most sites are scarce. Kuch development activity was temporarily suspended when PURPA was tied up in federal courts from early 1982 until mid-1983. but the resolution of key issues in favor of small power producers has again given a push to small-scale power production in the state. A survey of permit spplications filed with the Federal Energy Regulatory Commission (FERC) reveals that four general types of facilities have been proposed for Colorado: dams, irrigation ditches, run-of-river and water treatment. The ;otal potential capacity reflected in the FERC applications is 343.6 mw. If this capacity were developed, it would increase the state's total generation capability by about six percent and hydro capacity by more than 68 percent. Viewed another way, the potential capacity of the proposed small-scale hydro sites in Colorado is approximately that required to serve Colorado Springs, the state's second-largest city. Possible Effects of Cloud Seedin~ on Small-Scale Hydropower Production Two proposed small-scale hydroelectric projects were selected for study: o a "run-of-river" installation on the North Fork of the San Kiguel River planned by the city of Telluride, and o a turbine on the Frying Pan River at Reudi Reservoir that the City of Aspen plans to install. i