Colorado Board Approves $99 Million Shoshone Water Rights Deal

The Colorado Water Conservation Board unanimously approved an instream flow agreement on November 19, 2025, allowing the Colorado River District to acquire senior water rights tied to the Shoshone Power Plant from Xcel Energy for $99 million. The deal ensures water remains in the river for environmental benefits and preserves the status quo of westward flow even if the power plant ceases operation.

To secure the agreement, the board adopted a co-management strategy between itself and the Colorado River District. This compromise satisfied Western Slope stakeholders, including Mesa County, who threatened to withdraw support if joint management was not adopted. However, Front Range water providers, including Denver Water, contested the arrangement, arguing that co-management grants the Western Slope excessive control over future diversions and cedes the board's exclusive authority.

While the project has secured over $57 million in state and local commitments, it faces a significant funding gap. The Trump administration has frozen $40 million in federal funding previously committed by the U.S. Bureau of Reclamation under the Biden administration. The acquisition now awaits a decree from the Colorado Water Court and approval from the Colorado Public Utilities Commission to finalize the change in water rights.