Presented to CREA Energy Summit By Carl Brouwer October 2011 Carter Lake Outlet Bypass Addition Capacity: 250 cfs Completed 2008 Cost: $12M Project Layout Project Particulars 2 -1,300 KW Francis Turbines 480 volt generators and controls 85 foot x 38 foot Powerhouse 2oo feet of 72-inch Penstock Connection to St. Vrain Canal Connection to PVREA Project Sizing Station Layout Layout Drawing Outside View USBR Lease of Power Privilege Initiate LOPP Process USBR Advertises in Fed. Register Prepare Proposal USBR Proposal Review Preliminary LOPP Final LOPP 1 Month 2 Months 6 Months 2 Months 1 Months 3 Months Replaces FERC on USBR Facilities Requires EA Approx. 1 1.5 Years Approx. $5/MWhr 40 Year Term Project Costs COST ITEMAMOUNT Turbines/Generators/Controls$3,500,000 Site Construction$1,800,000 Transformer/Switchgear$130,000 PVREA Costs$140,000 Engineering/CM/Administration$630,000 TOTAL$6,200,000* *Does not include permitting, feasibility, pre-design, and turbine design of $500k Project Economics Present Value of Costs: $8,300,000 Present Value of Revenue: $13,400,000 Net Present Value of Project: $5,100,000 Benefit/Cost Ratio: 1.6 Financing $2,000,000: 2%, 20-Year-Colorado Water Resources and Power Development Authority $4,700,000: 2%, 20-Year, Internal Loan from Northern Water to New Hydropower Enterprise Loan Repayment Based Upon Revenue-Only Includes 1-Year Debt Service in Reserve (Rainy Day Fund) Future Cash Flow