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<br />003400 <br /> <br />These two sites were selected because they are more likely to be developed <br />than many of the other proposed sites. <br /> <br />Possible effects of cloud seeding on streamflow were estimated by relating <br />flow to April 30 snow water equivalents in the headwaters regions of the San <br />Miguel and Frying Pan Rivers. This procedure is similar to procedures used <br />by the U.S. Department of Agriculture, Snow Survey Unit to estimate runoff. <br /> <br />The value of the estimated additional energy produced each year at the San <br />Miguel River site is about $7,100, an increase of about five percent. <br />Assuming that cloud seeding could increase streamflow annually for the life <br />of the project, $7,100 would constitute a permanent increase in the value of <br />the installation. Treated as an annuity, $7,100 increases the present value <br />of the project by about $58,000. <br /> <br />The value of the estimated additional power produced at the Reudi Reservoir <br />site is about $77,000, an increase of about ten percent. Treated as an <br />annuity, $77,000 adds about $630,000 to the present value of the project. <br /> <br />Conclusions <br /> <br />Increases in stream flow that could result from winter cloud seeding have <br />two effects on the output from small-scale hydropower facilities: <br /> <br />o total electrical energy produced increases, and <br />o hydro generators operate closer to full capacity. <br /> <br />Because generators operate closer to full capacity, the estimated value of <br />the energy output increases by a larger percentage than estimated energy <br />production increases. At the Telluride site a 15 percent increase in April <br />30 snow water aquivalent increases electric energy output by 3.5 percent and <br />raises the value of energy output by 5.0 percent. At the Reudi site a 15 <br />percent snow water equivalent increase raises energy output by.6.1 percent <br />and its value by 9.9 percent. In both cases, estimated increases in the <br />value of power attributable to modest increments in stream flow are <br />substantial, especially when considered over the expected life of the <br />projects. <br /> <br />It is difficult to draw comprehensive conclusions about all small-scale <br />hydropower sites from the two sites that we have studied because developers <br />use diverse technologies and face diverse situations. Water rights could <br />play an important role. Developers who have senior rights probably would be <br />less affected by incremental increases in streamflow than developers with <br />junior rights. Based on the results of the two sites examined, however, we <br />conclude that possible increases in streamflow from cloud seeding could <br />increase significantly the amount and value of the energy output from <br />small-scale hydropower facilities in Colorado. <br /> <br />ii <br />