SEATTLE, Jan. 30 -- In a decision that could trigger
the largest dam-removal project in world history, the federal
government said today that four hydroelectric dams on the troubled
Klamath River must undergo costly modifications to allow passage for
salmon.
Since modifying the aging dams would cost an
estimated $300 million, removing them has suddenly become a much more
plausible -- and considerably cheaper -- option for their owner,
PacifiCorp, a company owned by Warren E. Buffett's Berkshire Hathaway
Inc.
Removing the dams would cost $101 million less than
modifying them as ordered by federal agencies, according to a recent
report written for the California Energy Commission.
Although a number of dams across the United States
and around the world have been removed or scheduled for removal in
recent years, federal officials say they know of no other river in the
world for which the removal of four hydroelectric dams is under
review.
If the dams were removed, the Klamath, which
straddles the Oregon-California border, has extraordinary potential to
rebound as a major salmon resource, according to fish biologists and
regional officials. They say a revival could dramatically improve
commercial and sport fisheries along the coasts of Oregon and Northern
California.
The Klamath once supported the third-largest runs of
salmon on the West Coast. But in the more than eight decades since it
was dammed, it has become one of the most fought-over rivers in the
West -- with massive fish kills, blooms of algae, angry irrigators,
litigious environmentalists and Indian tribes whose diet and culture
have been substantially damaged by the disappearance of salmon.
Biologists blame the dams as a contributing factor to the near
shutdown last summer of commercial salmon fishing along 700 miles of
the Oregon-California coastline.
The four dams produce electricity for about 70,000
customers. The power is worth about $29 million a year, according to
the California Energy Commission.
"The Klamath is a degraded system, but it is
uniquely restorable," said David Diamond, an analyst with the
Interior Department. "These dams are the only barriers to fish
passage from the headwaters to the Pacific. The watershed is 80
percent under federal ownership and it doesn't have major cities or
other development that prevents the return of healthy salmon
runs."
For years, pressure to remove the four Klamath dams
has come from Indian tribes, conservation groups and commercial
fishermen. But in a move that surprised many environmentalists, the
Bush administration -- through the National Oceanic and Atmospheric
Administration's National Marine Fisheries Service -- concluded last
year that dam removal would be best for salmon.
The issue has been forced on PacifiCorp because
federal licenses for the dams, the oldest of which was completed in
1918, are up for renewal. The Portland, Ore., power company had
proposed that it be allowed to trap and haul salmon around its dams as
a way to revive the river's salmon fishery.
But the joint announcement by the Interior
Department and NOAA rejects that proposal. As a necessary condition
for obtaining a new federal license, they said that PacifiCorp must
build costly fish ladders and other fish-passage devices at each of
the dams on the Klamath.
"We are disappointed," said Dave Kvamme, a
spokesman for PacifiCorp. "We are looking for an outcome that
best serves our customers. We are going to have to look at costs and
risks."
In three other license-renewal cases, PacifiCorp has
agreed to remove dams from Western rivers. The company, too, has
participated for more than two years in confidential negotiations with
other Klamath River stakeholders in what to do about reviving the
health of the river.
"We have never ruled out dam removal as one
potential outcome," Kvamme said, while adding that his company
urgently needs to create more electricity generation and regards the
dams as "an extremely valuable resource."
Buffett, whose holdings include PacifiCorp, is a
major shareholder in The Washington Post.
In the six Western states where PacifiCorp sells
electricity, the company would need to secure the approval of public
utility commissions to raise electricity rates to recover the cost of
demolishing or modifying the Klamath dams.
Because removing the dams would be cheaper than
modifying them, there will be strong pressure on PacifiCorp from the
commissions to get rid of them, said Steve Rothert, director of the
California field office of American Rivers, an environmental group
involved in negotiations over the dams.
"It is in their ratepayers' interest to remove
the dams and replace the power," Rothert said.
Kvamme said PacifiCorp has not yet determined
whether modifying the dams would be less expensive in the long run
than taking them out.