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Energy
Commission Analysis Says Klamath Dam Removal, not Upgrades, More
Beneficial than Earlier Projected
The
For Immediate Release:
Media Contact: Claudia Chandler - 916-654-4989
After reviewing data from a 50-page filing submitted by PacifiCorp
recently to the Federal Energy Regulatory Commission (FERC), the Energy
Commission issued a supplemental report showing that it makes more
economic sense than first thought to remove the dams and buy replacement
power. Removing the dams would be about $114 million less costly than
relicensing the project and installing expensive fish ladders, according
to PacifiCorp data.
"PacifiCorp must choose the alternative that makes the most
economic sense for its ratepayers," commented California Energy
Commissioner John Geesman. "Using PacifiCorp's own numbers the new
analysis clearly indicates that it is best for the ratepayer that these
four dams be removed. The Energy Commission will work with the six state
public utilities commissions to ensure that they are informed on how to
protect the ratepayers."
The
The company's four dams comprising the Klamath Hydroelectric Project
produces 169 megawatts, but remains a major threat to salmon along
nearly 300 miles of habitat in the upper
Recent determinations by the U.S. Fish and Wildlife Service and National
Oceanic and Atmospheric Administration Fisheries show that an expensive
network of fish ladders will be required to allow adult salmon to
migrate up river to the 300 miles of historic spawning grounds.
In an addendum released today, to the December 2006 Klamath Project
Alternatives Analysis Model (KPAAM) Consultant Report, the Energy
Commission said dismantling instead of upgrading the dams could actually
save the company's ratepayers up to $286 million -- $13 million more
than originally suggested. The range in benefits from removing the dams
is from $32 million to $286 million, depending on the assumptions used.
The addendum used data provided by PacifiCorp in the recent FERC filing.
(The Klamath Consultant report previously found that removing
PacifiCorp's dams could range from a cost of $14 million to a benefit of
$285 million for the ratepayer.) This new information makes the
economics for dismantling the dams even more compelling.
Both the addendum and the original report are available on the Energy
Commission's website: http://www.energy.ca.gov/klamath
In a filing with FERC, the Portland-based utility said it had
commissioned a review of the Energy Commission report and had found
problems with the economic model used to make the initial estimate, as
well as the data fed into the model.
The report by Christensen Associates Energy Consulting, LLC, (CAEC) of
Madison Wis., said the Energy Commission analysis did not reach a good
estimate of the cost difference between removal and licensing of the
dams. When data fed into the model was rectified, Christensen said it
came up with a contrary result: that PacifiCorp would save $46 million
by upgrading the dams and continuing to operate them.
"Their assertion that the model is not credible is not supported by
the facts. The CAEC critique makes an even stronger case for
decommissioning when their data is used," commented Geesman.
"More importantly, we now have an economic model that state and
federal agencies can use to weigh the options of relicensing the dams
versus removing the dams and restoring the habitat."
The model, called the Klamath Project Alternatives Analysis Model (KPAAM)
is a rigorous and transparent tool that provided the parties involved
with a good faith analysis of the pros and cons of the proposed
strategies for the dams, the Energy Commission said in the supplement.
As such, the Energy Commission expected a good faith scrutiny of the
model from stakeholders who were welcomed to add their preferred
assumptions to the data and the model. PacifiCorp's consultants did not
disagree with the fundamental principles and structure of the KPAAM
model. Energy Commission staff, according to the supplement found that
some of Christensen's analysis provided important PacifiCorp data that
had been denied the state in earlier requests.
The report addendum said after revising the model, using the appropriate
corrections from the CAEC, Energy Commission consultants and staff had
found that removal instead of upgrading the dams increases the economic
benefits to ratepayers from a range of $32 million to $286 million.
Originally, KPAAM report forecast that the difference between the
options ranged from a cost of $14 million to an economic benefit of $285
million. For the revised scenario using PacifiCorp's power cost forecast
-- decommissioning would now be $114 million cheaper than relicensing -
a savings of $13 million more than suggested in the original KPAAM
report.
"Mitigated relicensing" remains the highest economic risk to
PacifiCorp ratepayers, the Energy Commission said. Upgrades, such as
building fish ladders and installing water quality improvement devices
to meet modern, legal and scientific standards are "complex and
expensive."
Dam improvements would cost from $223 million to $415 million. During
improvements, the report said power production from the dams will be
reduced by 23 percent and the project will be unable to provide quick
supply during peak periods of electricity demand.
# # #
S. Craig Tucker, Ph.D.
Klamath Campaign Coordinator
Karuk Tribe of
office: 530-627-3446 x3027
cell: 916-207-8294
ctucker
[at] karuk.us
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Source: http://www.indybay.org/newsitems/2007/03/27/18384026.php