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.
