Yreka, Calif. - Note:
Afternoon and evening public meetings were
hosted Thursday at the Miner’s Inn in Yreka
by three Federal Energy Regulatory
Commission (FERC) officials on the Agreement
in Principle (AIP) regarding the Klamath
Hydroelectric Project Relicensing Proceeding
(FERC Project No. 2082), which addresses the
potential removal of four dams on the
Klamath River: the Iron Gate, Copco No. 1,
Copco No. 2, and J.C. Boyle dams.
Representing FERC were Klamath Project
Coordinator for Relicensing John Mudre,
Director Ann Miles from the Office of Energy
Division of Hydropower Relicensing, and that
office's West Branch 2 Chief Timothy J.
Welch. Welch provided an electronic copy of
the PowerPoint presentation to the Siskiyou
Daily News.
Today's article is simply a converted
and edited copy of that presentation. To
ensure accuracy on one of the most
significant issues of the day for Northern
California and South Oregon residents,
articles on the numerous concerns, questions
and answers from those in attendance are
being held and will appear throughout next
week's Daily News pages, along with
additional photographs.
The purpose of the meeting was to discuss
the Agreement in Principle within the
context of FERC’s relicensing proceeding for
the Klamath Hydroelectric Project.
FERC’s Policy Statement on Hydropower
Licensing Settlements, issued September 21,
2006, states: “The Commission favors
settlements but cannot automatically accept
all settlements, or all provisions of
settlements. The commission must make a
public interest determination based on the
entire record. Settlement measures must be
supported by substantial evidence,
consistent with law and enforceable (within
Commission jurisdiction), related to project
effects or purposes and to reserve the
commission’s compliance authority within its
jurisdiction.
Areas of Concern include damages, cost
sharing, cost caps, and funds/funding.
Commission approval can’t be ceded.
(FERC) Chairman (Joseph T.) Kelliher’s
Statement: On Dec. 19, 2008 Chairman
Kelliher stated that settling parties should
involve commission staff so that settlements
do not contain provisions that are contrary
to (FERC’s) policy and that can not be
incorporated into a license.
FERC’s Understanding of the AIP: The
Agreement in Principle for the “continued
operation and potential future removal of
PacifiCorp’s Klamath River dams “Establishes
a framework for resolution of the
relicensing proceeding, as well as other
litigation and controversies related to the
project.”
Parties included PacifiCorp, the United
States departments of Interior, Agriculture
and Commerce, and the states of California
and Oregon.
The Agreement in Principle regards the
potential removal of Iron Gate Dam, Copco
No. 1 Dam, Copco No. 2 Dam and J.C. Boyle
Dam. Remaining dams are the Keno Dam
(transferred to United States), and Fall
Creek Diversions (to be determined). The
East Side and West Side (power generation
plants) will be decommissioned.
Timeline: Final Agreement – June 29, 2009;
Feasibility Studies – 2009 to 2012; “U.S.
Determination” (decision) on removal – by
2012; Interim Operating Conditions – 2009 to
removal; Transfer to Non-Federal “Dam
Removal Entity” – 2020; and (potentially)
Begin Dam Removal – 2020 - 2025.
Final Agreement (FA): “The parties would
execute a Final Agreement (FA), by June 29,
2009. The FA would detail procedures,
schedules, agency and legislative actions,
and interim operating and conservation
measures that intend to result in the
removal, beginning as soon as 2020, of
Klamath Project mainstem dams.”
Interim Operating Conditions: PacifiCorp
would file a license amendment application
in order to implement interim operation and
conservation measures at the project,
including: changes in flows below project
dams, restrictions on generation,
installation/testing of turbine venting,
gravel placement below Iron Gate Dam,
increased fall flow variability, and
creation of funds and funding of various
programs.
Necessary related actions: The AIP and/or
the FA would be null and void and the
project returned to FERC proceeding under a
number of circumstances, including: failure
to execute the Final Agreement, failure of
passage of necessary federal and state
legislation, failure of state Public Utility
Commissions to act per the AIP, U.S.
determination that costs exceed benefit,
costs exceed limits established in the AIP
and FA, state water boards requiring
additional studies, and litigation.
Options for Licensing Proceeding under the
Federal Power Act include license issuance,
license denial, license surrender, license
transfer, non-power license and federal
takeover.
License Issuance: The project would continue
to operate under an annual license until a
new license is issued.
License Denial: If license is denied, a
surrender proceeding would be initiated.
License Surrender: The licensee would file
an application to surrender the project,
which could include dam removal, the record
being supplemented as needed, and project
operation under an annual license continuing
for a set period of time.
License Transfer: The licensee would file an
application to transfer the project, and
similar licensing options would be available
to transferee.
Non-power license: A non-power license is a
temporary license that the Commission
terminates when it determines that another
governmental agency will assume regulatory
and supervision over the project.
Federal takeover: Federal takeover and
operation of the project would require
congressional approval. No agency has
recommended federal takeover.
Questions for Moving Forward: What is
interaction between AIP and licensing
options we discussed? Should separated staff
be designated?
Further Comment: All correspondence must
clearly show at the top of the first page
“Klamath Hydroelectric Project, FERC No.
2082-027.”
Submit all comments to:
Kimberly D. Bose, Secretary
Federal Energy Regulatory Commission
888 First Street, N.E.
Washington, DC 20426
The final PowerPoint slide was a map of the
potentially impacted Klamath Basin.
The Federal Energy Regulatory Commission
(FERC) is the United States federal agency
with jurisdiction over interstate
electricity sales, wholesale electric rates,
hydroelectric licensing, natural gas
pricing, and oil pipeline rates. FERC also
reviews and authorizes liquefied natural gas
(LNG) terminals, interstate natural gas
pipelines and non-federal hydropower
projects.
Numerous concerns were raised. Look for
articles throughout next week’s Siskiyou
Daily News.
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