Xcel Energy plans to sell water it once held for power production to farmers in the water-strapped Lower Arkansas River Valley. This deal, valued at over $44 million, will help the struggling region access vital water supplies and protect its agricultural economy. Advocates hope this sale will become a model for preserving farm water security across the West.
Under the preliminary terms, Xcel will sell 12,500 acre-feet of water to a newly formed irrigation company. Farmers will own 70% of this company, while Colorado Springs Utilities holds the remaining 30%. This development addresses rising tensions between farm interests and growing cities.
Xcel originally purchased the water in the 1980s for a coal-fired power plant that never came to fruition and has been leasing the water to farmers ever since. The preliminary proposal helps protect irrigated farmlands, which have shrunk by 30% over the last three decades due to drought and municipal purchases. The power company is "wanting to leave this community better off than they found it," one coordinator noted. They easily could have sold the water to the highest bidder but chose this community-focused path.
The sale's success could offer a path forward for other regions as power companies retire coal plants and sell off their water holdings. For now, growers in the valley are ready to move forward, knowing they have secured the water for their land.
