Erie Votes 4-2 to Stay in NISP as Town’s Financial Stake Rises

After the Erie Town Council voted 4-2 to stay with the Northern Integrated Supply Project (NISP) on May 26, some might view the decision as a simple $3 million expenditure. However, the vote represents a deeper commitment to a water strategy marked by rising costs and declining participation, yet defended by supporters as a critical hedge against Colorado’s growing water scarcity.

To reach this decision, the council spent over an hour weighing financial risks against future development needs. Supporters argued that abandoning the project would waste approximately $30 million invested over two decades. Conversely, opponents questioned the wisdom of exposing the town to further financial risk as other communities scale back or withdraw entirely.

Erie remains committed to NISP, which involves diverting high spring flows from the Cache la Poudre River into the planned Glade and Galeton reservoirs. After years of environmental reviews and litigation, the regional project is now nearing major construction. For Erie, NISP is a massive long-term investment originally projected to provide 6,500 acre-feet of water annually—enough for roughly 13,000 households.

Despite its history, council members are increasingly questioning the project’s value. Updated modeling discussed this week suggests a lower participation level of 4,500 acre-feet, prompting concerns that the current economics no longer align with original assumptions. This shift is exacerbated by the departure of participants like the Fort Collins-Loveland Water District, which cited rising costs as a reason for withdrawal.

As other partners have stepped away, Erie’s responsibility has grown. Mayor Andrew Moore noted that the town’s share of the project has climbed from 16% to 23%, increasing its financial exposure. Staff projections indicate Erie could face a $6.44 million contribution in 2027, with water costs estimated between $85,000 and $95,000 per acre-foot—figures that some members noted are higher than Colorado-Big Thompson water shares.

The financial debate is fueled by NISP’s total cost projections, which have jumped from $2 billion to nearly $2.7 billion. While critics point to withdrawals as evidence of a failing model, staff emphasized that Erie lacks a comparable replacement source for such a high volume of water. Proponents further argue that current costs are secondary to the larger issue of long-term resilience.

This decision comes as Colorado faces some of its poorest snowpack levels in recent history, with federal forecasts indicating runoff in parts of the Colorado River Basin could fall below 30% of average. Supporters warned that if NISP fails, competition for existing supplies will intensify, potentially driving water prices even higher.

The divide on council centered on whether NISP is the most responsible way to handle this uncertainty. Mayor Moore framed the project as a question of equity, arguing that current residents should not subsidize infrastructure for new development. Others viewed it as a necessary investment in town-wide water security, noting that leaving would mean forfeiting decades of investment and a future water yield.

Ultimately, the vote to stay does not provide immediate water or lower utility rates; it merely preserves Erie’s stake and its $30 million investment. Mayor Pro Tem Bell and council members Baer, Hoback, and Pesamarrelli carried the motion, while Moore and Council Member Mortellaro voted in opposition.

The decision is far from final, as significantly larger financial commitments are expected by 2027. For now, Erie remains tied to a project that began as a tool for growth but is now a high-stakes gamble on an increasingly dry future.

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