During the Level II analysis of the Buffalo Municipal Reservoir Project,
the feasibility of installing a hydropower unit using the existing
Buffalo water supply line from the diversion structure on Clear Creek
was evaluated. Revenues from power sales would make a substantial
contribution towards retiring the loan for the Buffalo Municipal
Reservoir project. Water released from the reservoir for municipal use,
meeting downstream water rights, and instream flow purposes would
provide a steady and reliable source of falling water for power
In 1991, concept level plans, cost estimates and operating plans were
completed and the final report was submitted to WWDC and the project
sponsor. Total cost of the hydropower unit is estimated at $975,000.
The project sponsor opted to request construction funds for the
hydropower generation unit. The two projects, the Buffalo Municipal
Reservoir and the Buffalo Hydropower Project, are mutually
interdependent for economic feasibility.
In 1992, the WWDC and the city completed the project agreement, note and
mortgage necessary for the city to access project funds. The city has
received the Federal Energy Regulatory Commission license necessary to
operate the hydropower facility. The project has been designed and
construction bids will be received in January, 1996.
RECOMMENDED LEGISLATIVE ACTION:
The WWDC recommends that the project appropriation be increased from
$975,000 to $1,060,000 or $85,000. The financing plan would remain a
100% loan at an interest rate of 4%, a term of 5 years, and a 5-year
deferral. Please note, the appropriation may be amended to correspond
with the bids received.