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recommended project was very nearly the same as the project configuration proposed by the District and described in the FERC Preliminary Permit Appl ication. The main difference between the project configuration originally proposed by the District and the preferred configuration identified during the Authority's Basin Study was the location of the damsite for the mainstem reservoir. The preferred damsite for the mainstem reservoir identified during the Basin Study is immediately below the confluence of the mainstem and North Fork of the Cache la Poudre River. This site is approximately 2 miles upstream of the Grey Mountain Damsite originally proposed by the District, and was identified as the preferred damsite only because inundating 2 miles less of the Cache la Poudre mainstem would reduce environmental impacts. However, insufficient data existed to warrant an unreserved recommendation of this site, and the Basin Study recommended the Grey Mountain Damsite, originally considered by the District, as an alternative damsite for the mainstem reservoir. Using funding provided by the private entity interested in marketing the hydroelectric generating capacity of the proposed project, the District had initiated consultations with a number of Federal and State resource agencies and had begun detailed studies to assess various impacts on key environmental resources to test project feasibility. However, during the months following publication of the Authority's final report in January 1987, the private entity involved in marketing the hydroelectric generating capacity of the proposed project was unable to continue financing the District's environmental studies due to changing economic conditions. Because of the resulting funding restrictions, it became necessary for the District to temporarily suspend studies concerning the pumped-storage hydroelectric components of the proposed project. Additionally, without potential revenues from the pumped-storage hydroelectric generating capacity of the project, a re-evaluation of the water supply components of the proposed project was also appropriate. Because of the need to complete key environmental studies in order to test the feasibility of any water storage project in the Poudre Basin, the District applied to the Authority for funding to extend the Basin Study. ihe Authority agreed to extend the Basin Study to complete the key environmental studies and perform additional engineering and economic analyses to preliminarily assess the feasibility of a water storage project in the Cache la Poudre Basin without pumped-storage hydroelectric components. 3.0 DESCRIPTION OF STAGED PROJECT To facilitate the preliminary feasibility evaluation, the District has- proposed that the Cache la Poudre Project, as originally configured, be divided into three separate and distinct stages. Each stage would be studied, evaluated, and implemented separately, if feasible. The three stages are described as follows: - 3 -