The massive cost. A group of 20 economists from several Utah universities analyzed the fiscal impacts the Pipeline costs would have on Washington and Kane County residents.
» The Hidden $2.4 Billion Price Tag of the Lake Powell Pipeline
In August 2018, the Utah Division of Water Resources withdrew its $37 million Lake Powell Pipeline application with the Federal Energy Regulatory Commission (FERC). In August 2018, FERC announced they were narrowing the scope of their jurisdiction for the 140-mile-long project to a short section, the hydropower generating station. In September 2019, the Division of Water Resources, the project applicant, withdrew the entire application from FERC and removed all the hydropower components of the Lake Powell Pipeline project. Yet in a textbook definition of a marketing spin, the Division claimed this dead end was somehow a victory, despite the millions of taxpayer dollars wasted on the hydropower planning documents and a failed attempt at permitting. Then, in January 2020, the Division managed to hoodwink a more favorable federal agency, the Bureau of Reclamation, to lead the permitting for this costly and unnecessary water boondoggle.
In the latest round of federal permitting, which also appears to be headed towards another dead end. The project is set to cost taxpayers $2.24 billion, a truly staggering figure that will have profound impacts on Washington County residents and Utah taxpayers. In the past few years, several economic studies have analyzed the absurd rate increases necessary to pay for the Pipeline and the inability of Washington County to repay the project.
After the 2015 Economic Analysis was completed, the Washington County Water District claimed they had a financial model to repay the Lake Powell Pipeline repayment debt. But the Washington County Water District and the Division of Water Resources refused to provide the public with a copy of this model. The Utah Rivers Council submitted a GRAMA request to the Water District to obtain a copy, but they refused to share it with the public. Fortunately, after 5 months of appeals, the Utah Records Committee ordered the Water District to send the financial model to us.
After the economists determined the Water District’s financial model would not repay the billions paid out by Utah taxpayers, the Washington County Water District submitted a letter to Governor Herbert contesting their findings.
Once again, the Utah economists analyzed the claims in the Water District's letter carefully.