Klamath Water Users Association Electrical Power Brief 

Situation

• In 2006 Upper Klamath Basin water users face the expiration of contracts with PacifiCorp providing affordable electrical energy for irrigation, water conservation, and wildlife needs in the Upper Klamath Basin .
•  Klamath Water Users Association (KWUA) and representatives from PacifiCorp are currently engaged in “Credit for Value” negotiations, and Federal Energy Regulatory Commission (FERC) settlement discussions regarding re-licensing of the Klamath River power generation facilities.
• Overtures to KWUA indicate PacifiCorp intent to increase power rates to Klamath Basin water pumping entities up to 2500% when the current contract expires in 2006.  

Facts

• The Klamath Project was authorized for irrigation and power development.  The United States and PacifiCorp predecessor agreed that the private power development would supply the Project.
• he current power contract was required by the Federal Power Commission as a condition of PacifiCorp’s original license to compensate the retained interests of the United States on behalf of the Project water users, and the States of Oregon and California .
• The United States Congress, with ratification by the States of Oregon and California have created Federal Law, “The Klamath River Compact” mandating that the waters of the Klamath River provide “lowest power rates which may be reasonable for irrigation and drainage pumping…”.

• The Klamath Basin pumping interest only use 15% of the current Klamath River Generating Capacity and all the rate-payers in PacifiCorp service area receive rate cost benefit from the United States allowing PacifiCorp to operate in the River.  

Requested Support for Klamath Basin irrigators: 

• Assert and support continuing contractual claims for affordable electrical power generated by Klamath River waters.  

• Affirm and support compliance with Federal Law that mandates the primary purpose of Klamath River hydroelectric generation is to benefit irrigation, drainage pumping, and water well pumping.

• Address adverse regional economic impacts of proposed PacifiCorp rate increase. 

• Address adverse impacts on National Wildlife Refuge resources.

• Address adverse impacts on water conservation and water quality improvement investments made by the United States , Oregon , California , and private conservation entities.