As money woes mount, major water district looks to sell NISP shares
As money concerns mount, major water district looks to sell NISP shares
The building of Chimney Hollow Reservoir
Larimer County and Northern Water purchased the 3,500-acre property west of Loveland in 2004 for $3.8 million for water storage and recreation.
- Fort Collins-Loveland Water District (FCLWD), the largest stakeholder in the Northern Integrated Supply Project (NISP), is looking to sell its 20% share.
- FCLWD cites concerns over rising project costs, which have ballooned from $400 million to $2.2 billion, and a lack of cost control for participants.
- NISP involves building two reservoirs to supply water to Front Range communities.
After decades in the works, a long-awaited and hotly contested Northern Colorado water storage project may lose its biggest shareholder.
Fort Collins-Loveland Water District — the largest participant in Northern Water’s Northern Integrated Supply Project (NISP) — notified Northern Water of its interest in selling its 20% share in NISP on July 29, according to FCLWD General Manager Chris Pletcher.
The district’s interest in exiting NISP was first reported by KUNC and The Colorado Sun, and comes six months after Northern Water and Save the Poudre announced a $100 million settlement ending the environmental group’s 20-year battle against the project.
NISP would divert water from the Cache la Poudre and South Platte rivers and store it in two new Northern Colorado reservoirs built by Northern Water — Glade Reservoir northwest of Fort Collins and Galeton Reservoir northeast of Greeley. The reservoirs would supply water to various municipalities and water districts along the growing Front Range. The city of Fort Collins is not among them, but FCLWD covers a southeastern portion of the city, according to past Coloradoan reporting.
What to expect: Glade Reservoir will bury highway, add recreation, impact Haystack Rock
“Over the past several years, we’ve seen this project grow in detail. That’s normal as a project moves through the design process,” Pletcher said.
The estimated project cost, however, has also grown from $400 million to $2.2 billion, according to reporting by KUNC.
Now, with FCLWD expected to make its first financial commitment to the project when it signs off on the project’s financial plan in October, Pletcher told KUNC the contract with Northern Water is unreasonable and, if presented with it today, he wouldn’t sign it.
NISP participants would be responsible for the project’s costs without getting a say in those costs and with no potential project cost cap, Pletcher said.
“Whatever dollar amount Northern Water decides becomes the responsibility of the participants,” Pletcher said.
While noting that Northern Water is “a good partner,” Pletcher said he fears FCLWD would be on the hook paying back project loans even if NISP doesn’t come to fruition or yields no water or less water than expected.
“It’s a potential unlimited cost with potentially no water,” Pletcher said.
The water district is also concerned about its proposed intake near Fort Collins’ Mulberry wastewater treatment plant outflow, Pletcher said. The plant treats sewage and runoff water, according to The Colorado Sun, and there are concerns about forever chemicals and PFAs that could affect the district’s water quality, Pletcher said.
FCLWD made its concerns known at a meeting between Northern Water and NISP participants Aug. 4, Pletcher said. The district told Northern Water it was interested in selling its shares in the project July 29, he added.
Northern Water declined to comment for this story.