This is indeed a historic water rights case that has generated significant attention across Colorado. Here’s what’s happening:
The Shoshone Water Rights Case
The Colorado River District is pursuing a $99 million purchase of two powerful water rights tied to the century-old Shoshone Power Plant in Glenwood Canyon . These rights, currently owned by Xcel Energy, are influential enough to impact how water flows across the entire state .
Key developments:
In November 2025, the Colorado Water Conservation Board unanimously approved the proposal to use these rights to help the river itself through its Instream Flow Program . This was a major step forward, but the case now heads to water court where over 60 Colorado water groups have filed to participate .
Why it matters:
The power plant’s rights date to 1902 and have senior priority under Colorado’s “first in time, first in right” system. Western Slope communities, farms, ranches, and recreational industries have become dependent on these flows over the decades . The concern is what happens if the aging facility shuts down permanently.
The divide:
Major Front Range water providers — including Aurora Water, Denver Water, Colorado Springs Utilities, and Northern Water — have raised concerns. While they support protecting the flows, they dispute calculations about water amounts, worried that estimates that are too high could cut into water they can divert from the Western Slope to serve millions of people .
Remaining hurdles:
The proposal still needs water court approval and sign-off from the Public Utilities Commission. Additionally, $40 million in federal funding from the Bureau of Reclamation through the Inflation Reduction Act has been frozen by the Trump administration , creating financial uncertainty for the $99 million deal.
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