Panel recommends keeping Klamath dams, despite expense and struggling salmon 

John Driscoll

The Times-Standard

November 17, 2007

Federal energy regulators support keeping the Klamath River 's dams in place despite their findings that removing the hydropower project would be better for fish, and millions of dollars cheaper.

The Federal Energy Regulatory Commission on Friday released its final environmental analysis of Pacificorp's hydroelectric project, concluding that its chosen alternative is best, given the environmental benefits and costs.

But the agency will have to allow fisheries agencies' likely demands that fish ladders and higher flows in some parts of the river to be folded into a new license, if the commission issues one. That will balloon costs and may make removing four of the dams much more attractive, a concept with wide-ranging support, especially in coastal California and Oregon .

Pacificorp spokeswoman Jan Mitchell said that on its face, the FERC announcement means the project can be operated for its customers and for fish. She said the company has always maintained that a settlement agreement with the region's stakeholders would be the best outcome.

”It's clear this is one step in a very long process,” Mitchell said.

On Friday in Redding , a group of about two dozen tribes, agencies, irrigators and environmentalists were reportedly working to come to agreement on other key issues in the troubled Klamath Basin . If issues like water supply for fish, farms and wildlife refuges, among other problems are resolved, the group would then bring the settlement concept to their individual organizations for approval. They would then go to Pacificorp with a proposal to decommission some or all of the dams.

Reached at the talks, Steve Rothert with American Rivers said it was “a waste of ink” for FERC to push its plan over the one that the fish and wildlife agencies will require. He was heartened by the analysis that found removing the dams the most beneficial for fish, water quality and for Pacificorp's customers.

”They are saying that the project is a big fat economic loser to the tune of $20 million a year,” Rothert said.

Pacificorp is owned by Warren Buffett's MidAmerican Energy Holdings, and its Klamath project can produce up to 169 megawatts, enough for 70,000 homes. The commission is considering issuing a new license to operate for another 30 to 50 years.

Under FERC's alternative, a program first proposed by Pacificorp to trap salmon and truck them above the dams would be put in place. The document says this would allow biologists to determine whether young fish could migrate downstream through the harsh conditions in the reservoirs in good health.

But FERC's analysis says that removing two to four of the dams would provide salmon access to dozens, and perhaps hundreds of miles of spawning grounds, improve water quality and reduce fish diseases downstream.

”Direct access by all anadromous fish that historically had access to the Keno reach prior to downstream dam construction would be restored,” the analysis reads.

The hope is that fish stocks would be rebuilt, and provide a more reliable salmon fishery for tribes, and commercial and sport fishermen. In recent years, quotas have been drastically cut to protect the weak runs of fish, and congress declared the fishery a disaster in 2006.

The net power benefits each year would be about $2 million under FERC's alternative. But the project would lose $20 million a year if the fisheries agencies' requirements are put in place. By comparison, the net loss for removing the dams would be only $13 million.

”This is the recommendation from the staff,” said FERC spokeswoman Mary O'Driscoll. “The commission will be making the final decision.”

Fish advocates have pointed to studies including one by the California Energy Commission that estimates removing the dams and building other generation facilities -- natural gas, wind, or solar -- would be far cheaper for Pacificorp's customers than putting in fish ladders at the dams. A group of organizations, and the state of California , have begun lobbying the public utilities commissions and ratepayers in the five other western states Pacificorp serves. Maintaining the dams would be far more expensive and provide less reliable power, not to mention continue environmental damage, they claim.

A long and complicated road may lie ahead, judging by other relicensing projects, like the drawn out proceedings on the Eel River . Pacificorp must get a water quality certification from California and Oregon , a process that could feasibly take years. There may also be battles over demands for fish ladders from fish and wildlife agencies, as well as over other provisions. In the meantime, Pacificorp can continue to operate on an annual license.

Anne Warden, a spokeswoman for St. Helena Democratic Rep. Mike Thompson's, said the FERC report is being reviewed by congressional staff.

”Congressman Thompson still supports removal of the dams,” Warden said. “It's the best and most effective measure.”

John Driscoll can be reached at 441-0504 or jdriscoll@times-standard.com.

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