WHY IT MATTERS
The release of federal funding clears a major financial hurdle for western Colorado’s effort to secure century-old water rights on the Colorado River. The purchase will preserve reliable flows that support agriculture, endangered species habitat, and water quality across 15 counties on the Western Slope.
The $40 million grant from the Trump administration, combined with state and local contributions, nearly closes the $99 million funding gap needed to acquire the Shoshone Power Plant water rights from an Xcel Energy subsidiary.
WHAT HAPPENED
The Trump administration released $40 million in federal funding for the Colorado River Water Conservation District’s purchase of water rights tied to the Shoshone hydropower facility in Glenwood Canyon. The funding had been frozen for more than a year after the administration paused grants approved in the final hours of the Biden presidency to review alignment with policy priorities.
The water district has been working since 2023 to buy the rights from the power plant owner for $99 million. Under the purchase agreement finalized in late 2023, the district will own the rights and lease them back to Xcel so the facility can continue generating electricity.
Andy Mueller, general manager of the Colorado River Water Conservation District, credited the state’s congressional delegation and local partners for helping secure the funding. The district spans 15 counties in western Colorado.
BY THE NUMBERS
- $40 million: Federal grant released by Trump administration
- $99 million: Total purchase price for Shoshone water rights
- $37.3 million: Local contributions from irrigation districts, cities, and utilities
- $20 million: State funding approved by Colorado Water Conservation Board
- 15 counties: Coverage area of Colorado River Water Conservation District
- Over 60: Cities and irrigation districts that filed opposition requests in water court
ZOOM OUT
The Shoshone water rights are among the largest and oldest on the Colorado River in Colorado. For over a century, these senior rights have shaped water delivery to Front Range and Western Slope users. Because the power plant operates year-round and returns all water to the river, it creates predictable flows that benefit downstream farmers, ranchers, recreation businesses, and endangered fish species.
Western Slope communities have long worried about what would happen if the aging facility closed or if new owners diverted the water elsewhere. The permanency project aims to keep the water flowing in the river whenever the plant is not generating power.
The effort has drawn opposition from Front Range utilities including Denver Water and Aurora Water over calculations of water amounts and control provisions. More than 60 entities have submitted filings in water court to weigh in on the legal changes required for the purchase.
WHAT’S NEXT
The water court case to legally change the rights could take years to resolve. Xcel Energy must also seek approval from the state utility commission for the sale. With federal funding now secured, the Colorado River Water Conservation District has nearly fulfilled the financial requirements of the purchase agreement, though final completion of the acquisition remains years away.