The $99 Million Colorado Water Deal You Need to Know About

Grand Junction may not be ground zero for the state’s biggest water negotiations, but one of Colorado’s most expensive deals being considered today is directly connected to the Grand Valley.

The Colorado River District is working to acquire the historic Shoshone water rights to the hydroelectric plant in Glenwood Canyon for $99 million. These rights would protect Western Slope water flows while the plant continues to provide power. The deal is expected to benefit agriculture, recreation, communities, water quality, and help endangered fish habitat downstream.

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What Is Colorado Buying for $99 Million?

The $99 Million Colorado Water Deal You Need to Know About

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$99 million is a price tag that gets noticed, but the deal isn’t for the Shoshone Power Plant itself. The Colorado River District’s agreement would be with the Public Service Company of Colorado, which is an Xcel Energy subsidiary. The deal calls for the district to acquire the Shoshone water rights, including senior rights dating to 1902 and a junior right from 1929 that allows for up to 1,408 cubic feet per second from the Colorado River. The plant would continue to operate under a permanent lease with Xcel.

Where Is the $99 Million Coming From?

So where is the $99 million coming from? Funding is reported from multiple sources instead of one giant check. Colorado’s General Assembly committed $20 million, Mesa County has committed $1 million, and the federal government is awarding another $40 million. The River District said in May the federal award brings the total funding to around $97 million, putting the campaign very close to the finish line.

The Colorado River District and Public Service Company of Colorado signed the $99 million Purchase and Sale Agreement in December 2023. At the September 18 Colorado River District water seminar at CMU, the district announced it had secured more than $97 million toward the $99 million purchase, meaning the fundraising piece is now very close to complete. KKCO specifically reported the Shoshone project as a “breakthrough.”

Why Permanently Protecting the Water Matters

The $99 Million Colorado Water Deal You Need to Know About

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This deal could impact Grand Junction in a big way, but the bigger question may be what happens to those Colorado River flows over the long term. The change would allow the Shoshone rights to be used for instream flow when they are not used for hydropower. This creates permanent protection for the Colorado River itself. The River District says this matters for irrigation reliability, water quality, and the 15-Mile Reach, where flows support endangered-fish recovery.