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1102 G I I I I I I I I I I I I I I I I I I Final PSOP Implementation Committee Report Southeastern Colorado Water Activity Enterprise April 19, 2001 Section 3 - Enlargement of Fry-Ark Facilities 3.1 Enlargement Details Phase II of the Preferred Storage Options Plan calls for the enlargement of existing Fry-Ark Project reservoirs in order to meet the full demand for storage. The PSOP first proposes the enlargement of Pueblo Reservoir by 54,000 acre-feet to meet demands in 2013. Next, the PSOP calls for the enlargement of Turquoise Reservoir by 19,000 acre-feet; this additional storage space is needed to meet the year 2025 demand. All water-user entities within the boundaries of the Southeastern Colorado Water Conservancy District will be eligible to participate in these enlargement projects under the terms described below. The exact amount of additional storage available for participants in the enlargement project will be determined by a combination of the federal,level feasibility study(s), congressional authorization, negotiations with the Bureau of Reclamation, and the final EIS for the enlargement project. The enlargement projects will be implemented in such a way so as to maximize the development of additional storage. It may be more cost effective to pursue a 60,000 acre-foot enlargement of Pueblo Reservoir, depending upon the outcome of the federal studies and the exact level of participation by water users. 3.2 Funding the Enlargement Projects Individual participants (allotment contractors) will be responsible to fund the engineering, final design, and construction of their portion of the enlargement project. Allotment contractors will also be responsible for the costs of developing the Enterprise Water Management Storage as described in the Limitations and Obligations portion of this section of the Implemenfation Committee Report (pages II and 12). It is important that the Enterprise develop the maximum amount of additional storage necessary to meet future, District-wide needs. Toward that end, the Enterprise will pursue opportunities to fund additional Enterprise Water Management Storage beyond that provided by the allotment contractors' 15 percent mitigation targeting a total of 10,000 to 20,000 acre- feel. Funding options may include a rate-based structure and/or the use of the District's existing mill levy. A mill-levy funding approach would of course require a District-wide vote, and would need the support of all water-user entities in the District. Enterprise staff will work with the Enterprise Board over the next two years to devise an appropriate funding plan. The funding plan will be in place before the Enterprise seeks final congressional authority for construction of the enlargement projects. 8 9'lO61 FnulPSOPRepon