The plan for the Klamath dams

November 14, 2008

By Nicholas Grube

Triplicate staff writer

A preliminary agreement that would result in the largest dam removal in U.S. history was met with optimism by government and tribal officials Thursday.

Representatives from the U.S. Department of Interior, Oregon, California and PacifiCorp, announced the signing of the potentially historic agreement that would remove four hydroelectric dams on the Klamath River to restore salmon habitat and increase water quality.

"This agreement represents a significant milestone in the Yurok Tribe's efforts to restore the salmon fishery and to remove the dams on the Klamath," said Troy Fletcher, a policy analyst for the tribe. "The Yurok Tribe has been very anxious to begin working on the health of the Klamath River. This is a very positive step."

For years the tribe, fishermen and conservationists have worked to get PacifiCorp to remove its four lowest dams in the Klamath Basin. They want to reopen more than 300 miles of prime salmon spawning habitat that is blocked by the dams.

The Klamath is the third most important salmon river on the West Coast outside of Canada, behind the Sacramento and Columbia. And it is an important incubator for the Pacific salmon fisheries, which has collapsed twice since 2006, including this year's closure of the commercial ocean season and limited recreational fishing.

Crescent City Harbor Master Richard Young said the recommendation to remove the dams brings with it heightened expectations for local fishing, but it also seems like a distant prospect in that the dams aren't expected to be deconstructed until 2020.

"Once they remove them it will take some number of years until it has some impacts on the salmon," Young said. "It looks to me like the pay-off is pretty far into the future, and that's a pretty tough thing."

He said that long ago, when the fish were plentiful, Crescent City's harbor was filled with boats and anglers waiting to hook a salmon. The RV parks were packed and the there were lines of people trying to put their boats in the water.

"In years past — many years ago — there were over 500 recreational salmon slips we put in (the harbor) ... In this past year we put in 50," Young said. "It was very, very busy all summer long and much of that has gone away."

With potential dam removal on the horizon, Young said he'd like to see a resurgence, but he keeps it in perspective.

"It's a long ways off," he said. "The full effect is 20-some years into the future."

One of the earliest impacts of this agreement could be to utility ratepayers.

Dam removal is estimated to cost $450 million. Less than half of this would be PacifiCorp's responsibility, and what portion the company is liable for would be passed on to its customers.

If a final agreement is made, the first $200 million would be paid for by ratepayers in Oregon and California through a surcharge that would not increase rates beyond 2 percent.

In California, this would mean an increase of about $1.25 per month, the utility said. In Oregon, the increase would be about $1.35.

The remaining $250 million would come from California through voter-approved general obligation bonds, meaning Californians would pay more in the end.

PacifiCorp Chairman and CEO Greg Abel said in a teleconference Thursday that the structure of the agreement protects customers from paying exorbitant dam removal costs while also allowing them access to reasonable rates until the dams are taken out in 2020. It alleviates the company and its customers of any additional financial liability.

"The agreement in principle establishes fair and balanced outcomes for all our customers and stakeholders," Abel said.

A lot of work must still be done. The deadline to sign a final dam removal agreement is June 29, 2009, meaning there is still time for PacifiCorp or the federal and state governments to back out of the deal.

There are also a number of hurdles that have to be overcome by 2020 before the dams can start coming out, including the passing of significant state and federal legislation, and studies that will determine if dam removal is even feasible.

"This announcement today marks a first step in a future process," U.S. Secretary of the Interior Dirk Kempthorne said Thursday. "But it's a giant step."

Troy Fletcher of the Yurok Tribe understands this sentiment as well.

He said the tribe will work with PacifiCorp and the state and federal agencies to ensure a final agreement is approved and the four dams — Iron Gate, J.C. Boyle and Copco 1 and 2 — are removed from the Klamath.

"This means a lot of work has got to be done," Fletcher said. "It's not really the end of anything. It's the beginning."

Reach Nicholas Grube at ngrube@triplicate.com.