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This Website is Dedicated to
Alvin Alexander Cheyne
January
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A group of Portland-based
PacifiCorps California electric customers have
petitioned the California PUC to look into the
company's spending to relicense its Klamath
River dams and powerhouses. They think the
spending - already in excess of $50 million - is
excessive and imprudent for an aging system that
damages the environment and that the company
will attempt to pass these costs to its
customers. The California PUC is charged with
protecting the interest of customers - called
"ratepayers" in the parlance of the PUC.
Some Californians who get their
electricity from Portland-based PacifiCorp want
the California Public Utilities Commission to
review PacifiCorp’s spending on its Klamath
River dams and to provide an expert, independent
assessment of what is best for the ratepayers.
The ratepayers filed their petition on July 14th
with the California Public Utilities Commission
(CPUC) asking that the CPUC use existing rules
to review the prudence of PacifiCorp continuing
to spend heavily in its campaign to secure a new
long-term license from the Federal Energy
Regulatory Commission (FERC) for operating its
Klamath Hydroelectric Project
The ratepayers say they fear that PacifiCorp has
already spent too much money (about $50 million)
on the antiquated dams, and that it is in the
ratepayers’ best interest for the dams to come
out.
“We’ve become increasingly concerned,” said
ratepayer Susan Botts, “as we’ve watched this
dam re-licensing issue play out.” Botts and her
family live on the Yurok Reservation near the
mouth of the Klamath River. Botts says that she
signed the petition because she wants to see the
Klamath River restored and because she has
become convinced by a number of recent technical
studies that it will be cheaper to remove the
dams than to solve the many environmental
problems which the dams cause or make worse.
The people who signed the petition to the CPUC
live in Del Norte County and in Siskiyou County.
Because of the toxic algae, nutrients and other
pollution that the dams produce and release down
the river, the petitioners say that the Klamath
Hydroelectric dams represent a human health risk
and a huge financial and legal liability that
must not fall on the ratepayers, many of whom
have only modest incomes. “If PacifiCorp insists
on spending recklessly trying to re-license the
Klamath Project, then PacifiCorp should be the
ones financially and legally on the hook – not
us.” Botts said.
“We have our own Erin Brockovich story happening
right here in our back yard” said Felice Pace,
another of the petition-signers. “The human
health catastrophe that Erin Brockovich
uncovered cost PG&E hundreds of millions of
dollars. We don’t want that here and we
certainly don’t want to have to pay for it.”
Customers are called “ratepayers” in utilities
parlance. PacifiCorp has been claiming for some
time that their only interest is to protect the
interests of their ratepayers. Botts, Pace and
the other petitioners think the company’s
behavior is more geared toward getting the
ratepayers to pay for everything.
PacifiCorp makes about $3 million a year in
profit from the Klamath dams — paid by the
ratepayers. If the ratepayers are forced to pay
for PacifiCorp’s relicensing plan, they would
end up paying PacifiCorp an annual profit of
about $40 million — for dams that the downstream
public doesn’t want. “Does this make sense?”
asked Pace. “Why should we pay PacifiCorp a
profit on something that we don’t want – that
harms us? We need the CPUC to give this
situation a thorough and independent analysis.”
“We simply don’t trust PacifiCorp to look out
for our interest,” said Susan Botts.
Portland-based PacifiCorp’s is owned by Warren
Buffett’s Berkshire Hathaway Investment Company.

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