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002000 Initial Information Package Williams Fork Hydroelectric Project FERC Project No. 2204 senior call. As a result, Denver Water and the Bureau entered into an energy agreement to enable Denver Water to continue diverting water out-of-priority at its other facilities, so long as Denver Water provided the Bureau with replacement energy (either replace lost energy or replace the value of the lost energy) and replacement water. The FERC granted Denver Water the original license for the Project in 1957 with a power plant capacity of 3 MW. Historically, the entire output of hydroelectric power generated at the Williams Fork Dam was delivered to repay the Bureau for loss of power production at Green Mountain Reservoir, caused by Denver Water's out-of-priority diversions on the Blue River. -j I I Denver Water's September 1964 agreement with the USFWS, which addresses minimum streamflow below the Project, was incorporated into the existing Project license. The minimum flow requirements were to insure protection of the aquatic resources on the Williams Fork River, which merges with the Colorado River approximately two miles downstream. Per the agreement and Article 33 of the existing license, Denver Water is required to release a minimum of 15 cubic feet per second (cfs) of water or the inflow, whichever is less, from the dam at all times. Article 34 further requires that during the irrigation season, when downstream senior right holders divert Williams Fork River water before the confluence with the Colorado River, Denver Water must release the IS cfs, in addition to the quantities required by senior water decrees. j ~ In 1985 and 1986, Denver Water acquired the agricultural properties and senior water rights on the Williams Fork River below the Williams Fork dam. Denver Water then sold a portion of that land to the State of Colorado but retained the water rights. Denver Water currently leases the remaining agricultural land and accompanying water rights to private individuals. To ensure that the required minimum streamflow is satisfied to the Colorado River, Denver Water has entered into agreements with these private individuals, which gives Denver Water the authority to call out their diversions when flows are low. The Project's existing License expires on December 31, 2006. Under the Federal Power Act, the FERC may issue licenses for up to 50 years. However, recent trends have shown the FERC to be issuing new licenses for 3D-year and 40-year terms. Denver Water will submit a license application that may request the FERC to first review the application for a small hydroelectric power project exemption or, alternatively, for a new license with the Project's current capacity. 7