California electric utility Pacific Gas and Electric Company has withdrawn its expression of intent to seek a new license for the Potter Valley Hydroelectric Project, saying its relicensing would be contrary to the interests of its electric ratepayers. The withdrawal has prompted federal hydropower regulators to institute an "orphan project" process to find interest from other entities in seeking a license for the project. If no other entity seeks and obtains a new license for the project, PG&E would be responsible for surrendering the existing project license.
The Potter Valley Project is located on the Eel and East Fork Russian Rivers in northern California, about 15 miles northeast of the city of Ukiah. Originally licensed by the Federal Power Commission in 1922, and owned by PG&E since 1930, the project includes Lake Pillsbury, impounded by Scott Dam; the Van Arsdale Reservoir, impounded by the Cape Horn Diversion Dam; and a tunnel, penstock and powerhouse located in the headwaters of the Russian River Basin. PG&E estimates the average annual generation of the project to be 19,900 megawatt-hours, with an installed capacity of 9.4 megawatts. The current license issued by the Federal Energy Regulatory Commission expires on April 14, 2022, requiring PG&E to submit a new license application by April 14, 2020.
On April 6, 2017, PG&E filed a pre-application document (PAD) and notice of its intent (NOI) to file an application for a new license. But on January 25, 2019, PG&E filed notice of the withdrawal of its NOI and PAD, indicating it is no longer seeking a new license for the project and is terminating its efforts to transfer and sell the project.
In that notice, PG&E said it has "determined that it would be contrary to the interests of its electric ratepayers to continue relicensing the Potter Valley project." PG&E said it had long recognized hte project as "uneconomic for PG&E's ratepayers (i.e. the cost of production exceeding the cost of alternative sources of renewable power on the open market)." PG&E cited "continued declining energy markets, potential increased costs associated with anticipated new license conditions, and challenging financial circumstances" as leading the company to conclude it cannot justify to its ratepayers further expenditures associated with the project.
PG&E noted its anticipation that the Commission would institute its "orphan project" process under the Commission's rules to solicit license applications for Potter Valley from other entities, and expressed its understanding that PG&E would be responsible for surrendering the existing license if no other entity seeks and obtains a new license for the project. PG&E closed by saying it "recognizes the value of Potter Valley to local communities because it provides for the protection of important environmental resources, consumptive water uses, public recreation, and other economic values" which the utility said should be appropriately considered if it is required to file a surrender application.
In response, on March 1, 2019, the Commission issued a Notice Soliciting Applications for a new license for the Potter Valley project within 120 days. The Commission noted that if no other applicant files an application for a license by April 14, 2020, PG&E would be provided with written notice that no timely application for the project has been filed, and would then have 90 days within which to file a schedule for the filing of a surrender application for the project.
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Showing posts with label reservoir. Show all posts
Showing posts with label reservoir. Show all posts
PG&E withdraws Potter Valley hydro relicensing, FERC opens orphan project solicitation
Wednesday, March 6, 2019
FERC relicenses Poe hydro project
Monday, December 17, 2018
The Federal Energy Regulatory Commission has issued an order issuing a new hydropower license to utility Pacific Gas & Electric Company for its Poe Hydroelectric Project.
The 143-megawatt project is located on the North Fork Feather River in northern California, and includes land within the Plumas National Forest. Originally licensed in 1953, the project includes two dams impounding reservoirs, a 33,000-foot-long pressure tunnel bypassing about 7.6 miles of the river, and a powerhouse with two turbines.
The Commission issued a new 40-year license for the Poe project to PG&E on December 17, 2018. In relicensing proceedings, the Commission considers a number of public interest factors, including the economic benefits of project power. In general, the Commission evaluates the economics of a hydropower project by comparing the current costs of the project to likely alternative power, without considering forecasts concerning potential future inflation, escalation, or deflation beyond the license issuance date. The Commission says the basic purpose of its economic analysis is to provide a general estimate of the potential power benefits and the costs of a project, and of reasonable alternatives to project power.
In the Poe project's case, the Commission noted that after considering mandatory conditions and other measures suggested by Commission staff, PG&E's annual cost of operating the project would be about $9,590,000. Assuming that the project would generate an average of 498,113 megawatt-hours of energy annually, this works out to $19.3 per megawatt-hour. By comparison, the Commission found that the project's the corresponding alternative energy cost plus the value of its dependable capacity gave this power a value of $50,800,000, or $102 per megawatt-hour in the first year of operation, the project would cost $41,210,000 or $82.7 per megawatt-hour less than the likely alternative cost of power.
The 143-megawatt project is located on the North Fork Feather River in northern California, and includes land within the Plumas National Forest. Originally licensed in 1953, the project includes two dams impounding reservoirs, a 33,000-foot-long pressure tunnel bypassing about 7.6 miles of the river, and a powerhouse with two turbines.
The Commission issued a new 40-year license for the Poe project to PG&E on December 17, 2018. In relicensing proceedings, the Commission considers a number of public interest factors, including the economic benefits of project power. In general, the Commission evaluates the economics of a hydropower project by comparing the current costs of the project to likely alternative power, without considering forecasts concerning potential future inflation, escalation, or deflation beyond the license issuance date. The Commission says the basic purpose of its economic analysis is to provide a general estimate of the potential power benefits and the costs of a project, and of reasonable alternatives to project power.
In the Poe project's case, the Commission noted that after considering mandatory conditions and other measures suggested by Commission staff, PG&E's annual cost of operating the project would be about $9,590,000. Assuming that the project would generate an average of 498,113 megawatt-hours of energy annually, this works out to $19.3 per megawatt-hour. By comparison, the Commission found that the project's the corresponding alternative energy cost plus the value of its dependable capacity gave this power a value of $50,800,000, or $102 per megawatt-hour in the first year of operation, the project would cost $41,210,000 or $82.7 per megawatt-hour less than the likely alternative cost of power.
Laos dam construction and collapse
Thursday, July 26, 2018
A dam under construction in Laos as part of a hydropower scheme has collapsed, causing flooding and damage.
At issue is the Xe-Pian Xe-Namnoy project, a 410-megawatt hydroelectric power project under development for Xe-Pian Xe-Namnoy Power Company (PNPC). PNPC is a joint venture among the government of Laos and construction and power companies from South Korea and Thailand. The project, whose construction costs are estimated at about $1 billion, involves the construction of three primary dams to form reservoirs. Construction of the system was reportedly 90% complete, with commercial operation projected for 2019, and an agreement in place agreement to export 90% of project power to Thailand. The project has been touted for the degree of international investment involved, although some have criticized the project for insufficient local benefits.
From an engineering perspective, the project's primary dams impound water in a large reservoir. The project also includes three auxiliary "saddle dams" near several heads of the reservoir, essentially to prevent the reservoir from spilling down the impoundment's back side as it fills.
Project maps posted online by PNPC show saddle dams on three of the main reservoir's western branches.
One of these smaller saddle dams reportedly failed on July 23, 2018, allegedly due to severe rains. Saddle Dam D -- a facility 8 meters wide, 770 meters long and 16 meters high -- was built to support water diversion around the project's reservoir. But the structure reportedly fractured, causing water to spill downstream to the Xe Pian river outside of the project's intended path of water flow. According to the prime minister of Laos, at least 26 people have died and 131 are missing from the resulting flooding, and several villages .
Response and recovery actions are ongoing. The dam collapse highlights the importance of safety in dam construction and reservoir operations, as did the February 2017 failure of the Oroville Dam's spillway in California.
At issue is the Xe-Pian Xe-Namnoy project, a 410-megawatt hydroelectric power project under development for Xe-Pian Xe-Namnoy Power Company (PNPC). PNPC is a joint venture among the government of Laos and construction and power companies from South Korea and Thailand. The project, whose construction costs are estimated at about $1 billion, involves the construction of three primary dams to form reservoirs. Construction of the system was reportedly 90% complete, with commercial operation projected for 2019, and an agreement in place agreement to export 90% of project power to Thailand. The project has been touted for the degree of international investment involved, although some have criticized the project for insufficient local benefits.
From an engineering perspective, the project's primary dams impound water in a large reservoir. The project also includes three auxiliary "saddle dams" near several heads of the reservoir, essentially to prevent the reservoir from spilling down the impoundment's back side as it fills.
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| A map of the project, found at http://www.pnpclaos.com/index.php/en/project/maps |
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| Another project map found at http://www.pnpclaos.com/index.php/en/project/maps |
One of these smaller saddle dams reportedly failed on July 23, 2018, allegedly due to severe rains. Saddle Dam D -- a facility 8 meters wide, 770 meters long and 16 meters high -- was built to support water diversion around the project's reservoir. But the structure reportedly fractured, causing water to spill downstream to the Xe Pian river outside of the project's intended path of water flow. According to the prime minister of Laos, at least 26 people have died and 131 are missing from the resulting flooding, and several villages .
Response and recovery actions are ongoing. The dam collapse highlights the importance of safety in dam construction and reservoir operations, as did the February 2017 failure of the Oroville Dam's spillway in California.
Fate of U.S.-Canada dam license in question
Thursday, April 27, 2017
The holder of the U.S. federal hydropower license for a dam spanning the international border with Canada border has petitioned for approval to surrender that license, citing economic considerations.
At issue is the Forest City Project, located on the East Branch of the St. Croix River which forms the international boundary between the United States and Canada. The Project operates under conditions set by the International Joint Commission (IJC) in accordance with the Boundary Waters Treaty of 1909, as well as a license issued by the U.S. Federal Energy Regulatory Commission. The project currently operates under a license issued on November 23, 2015. That 30-year license expires on October 31, 2045.
Licensed by the Commission as Project No. 2660, the project includes the U.S. portions of a 540-foot-long, 12-foot-high earth dam, an impoundment spanning several lakes, and appurtenant facilities. There are no generating facilities located at the project; rather, the Forest City Project operates as part of a headwater storage system along with two other projects licensed to Woodland Pulp -- West Branch Project No. 2618 and Vanceboro Project No. 2492. Two hydroelectric generation projects are located downstream on the St. Croix River from these storage facilities, the unlicensed Grand Falls and Woodland hydroelectric projects.
On December 23, 2016, Forest City Project licensee Woodland Pulp LLC applied to the Commission to surrender its license. A cover letter attached to that application states, "Woodland Pulp has determined that the high cost of operating the Project pursuant to the new FERC license renders the Project uneconomical." In the surrender application itself, the company cited license provisions including new operating restrictions on reservoir pool elevation, a reservation of the Commission’s authority to require additional fishways if so prescribed by the Secretary of the Interior, and a requirement to develop a Historic Properties Management Plan (HPMP), as adding risk or cost. As noted in the surrender application, "After a comprehensive review of the conditions in the License, the minimal contribution to downstream power generation, and the significant added cost and increased complexity of the License, coupled with the loss of flexibility required to comply with the License, Woodland Pulp has concluded that it is not economic for the company to continue to operate the project.
As described by the Commission in an April 6, 2017 public notice of the surrender application, the licensee proposes to remove the gates on the west side of the spillway. According to the licensee, removing these gates will return water flow to natural flow conditions, and the Forest City Dam will no longer act as the water control structure for East Grand Lake, nor will it use, obstruct, or divert international boundary waters.
The Commission has docketed the surrender application as P-2660-028, and set deadlines for comments, protests, and interventions in the case.
At issue is the Forest City Project, located on the East Branch of the St. Croix River which forms the international boundary between the United States and Canada. The Project operates under conditions set by the International Joint Commission (IJC) in accordance with the Boundary Waters Treaty of 1909, as well as a license issued by the U.S. Federal Energy Regulatory Commission. The project currently operates under a license issued on November 23, 2015. That 30-year license expires on October 31, 2045.
Licensed by the Commission as Project No. 2660, the project includes the U.S. portions of a 540-foot-long, 12-foot-high earth dam, an impoundment spanning several lakes, and appurtenant facilities. There are no generating facilities located at the project; rather, the Forest City Project operates as part of a headwater storage system along with two other projects licensed to Woodland Pulp -- West Branch Project No. 2618 and Vanceboro Project No. 2492. Two hydroelectric generation projects are located downstream on the St. Croix River from these storage facilities, the unlicensed Grand Falls and Woodland hydroelectric projects.
On December 23, 2016, Forest City Project licensee Woodland Pulp LLC applied to the Commission to surrender its license. A cover letter attached to that application states, "Woodland Pulp has determined that the high cost of operating the Project pursuant to the new FERC license renders the Project uneconomical." In the surrender application itself, the company cited license provisions including new operating restrictions on reservoir pool elevation, a reservation of the Commission’s authority to require additional fishways if so prescribed by the Secretary of the Interior, and a requirement to develop a Historic Properties Management Plan (HPMP), as adding risk or cost. As noted in the surrender application, "After a comprehensive review of the conditions in the License, the minimal contribution to downstream power generation, and the significant added cost and increased complexity of the License, coupled with the loss of flexibility required to comply with the License, Woodland Pulp has concluded that it is not economic for the company to continue to operate the project.
As described by the Commission in an April 6, 2017 public notice of the surrender application, the licensee proposes to remove the gates on the west side of the spillway. According to the licensee, removing these gates will return water flow to natural flow conditions, and the Forest City Dam will no longer act as the water control structure for East Grand Lake, nor will it use, obstruct, or divert international boundary waters.
The Commission has docketed the surrender application as P-2660-028, and set deadlines for comments, protests, and interventions in the case.
FERC relicenses Waterbury hydro project
Thursday, February 25, 2016
More than 16 years after Green Mountain Power Corporation applied to the Federal Energy Regulatory Commission for a new license to continue operation and maintenance of its Waterbury Hydroelectric Project on the Little River in Vermont, the Commission has issued a new license for the project.
Waterbury dam and reservoir were built by the United States in 1938 to reduce flooding in the Winooski Valley, but are owned by the State of Vermont and operated by Green Mountain Power. The Commission issued the original license for the project in 1954, effective September 1, 1951, for a period of 50 years.
That original license expired on August 31, 2001. Two years before that date, Green Mountain Power applied for a new license to continue operation and maintenance of the project. But relicensing a FERC-licensed hydropower project can be an involved process. Environmental, conservation, and recreation-oriented groups intervened in the application case. As the relicensing case progressed, the original license expired, after which Green Mountain Power operated the project under annual licenses pending the disposition of its license application.
Over time, the applicant revised its proposal, in part to propose a change to run-of-river operation as contemplated by the project's Vermont Department of Environmental Conservation water quality certification. Ultimately, on February 19, 2016, the Commission issued an order issuing a new license for the Waterbury Project for a period of 40 years.
In setting the 40-year license term for the Waterbury project's new license, the Commission noted its discretion under Section 15(e) of the Federal Power Act to issue new licenses for a term that the Commission determines to be in the public interest, but not less than 30 years or more than 50 years. The order also notes the Commission's general policy "to establish 30-year terms for projects with little or no redevelopment, new construction, new capacity, or environmental mitigation and enhancement measures; 40-year terms for projects with a moderate amount of such activities; and 50-year terms for projects with extensive measures."
The Waterbury project relicensing case illustrates one potential path for what happens when a license expires for an existing FERC-licensed hydropower project. According to the Commission, as of February 11, 2016, over 50 projects were pending relicensing, with an increase expected in applications for new licenses over the coming years.
Waterbury dam and reservoir were built by the United States in 1938 to reduce flooding in the Winooski Valley, but are owned by the State of Vermont and operated by Green Mountain Power. The Commission issued the original license for the project in 1954, effective September 1, 1951, for a period of 50 years.
That original license expired on August 31, 2001. Two years before that date, Green Mountain Power applied for a new license to continue operation and maintenance of the project. But relicensing a FERC-licensed hydropower project can be an involved process. Environmental, conservation, and recreation-oriented groups intervened in the application case. As the relicensing case progressed, the original license expired, after which Green Mountain Power operated the project under annual licenses pending the disposition of its license application.
Over time, the applicant revised its proposal, in part to propose a change to run-of-river operation as contemplated by the project's Vermont Department of Environmental Conservation water quality certification. Ultimately, on February 19, 2016, the Commission issued an order issuing a new license for the Waterbury Project for a period of 40 years.
In setting the 40-year license term for the Waterbury project's new license, the Commission noted its discretion under Section 15(e) of the Federal Power Act to issue new licenses for a term that the Commission determines to be in the public interest, but not less than 30 years or more than 50 years. The order also notes the Commission's general policy "to establish 30-year terms for projects with little or no redevelopment, new construction, new capacity, or environmental mitigation and enhancement measures; 40-year terms for projects with a moderate amount of such activities; and 50-year terms for projects with extensive measures."
The Waterbury project relicensing case illustrates one potential path for what happens when a license expires for an existing FERC-licensed hydropower project. According to the Commission, as of February 11, 2016, over 50 projects were pending relicensing, with an increase expected in applications for new licenses over the coming years.
Alaska proposes large new dam
Monday, January 9, 2012
The Alaska Energy Authority has filed key documents with federal regulators giving formal notice of its intent to build the proposed 600 megawatt Susitna-Watana Hydroelectric Project. If this project is approved and built, it will be the largest hydroelectric project developed in the U.S. since 1966.
Plans to develop a large-scale hydropower project on the Susitna river have been considered for decades. In 2010, the Alaska Legislature established a goal of providing half of the state’s electric power from renewable sources by 2025. The Alaska Energy Authority, a public corporation of the state whose mission is to use Alaska's natural resources to produce electricity and lower costs, concluded that Alaska could not meet the 50% renewable goal without building a major new hydroelectric project.
On December 29, 2011, the Alaska Energy Authority filed a notification of intent to file an application for a hydroelectric license and a pre-application document with the Federal Energy Regulatory Commission. FERC docketed the project as No. 14241. (You can read these documents in FERC's eLibrary here.)
In those documents, the Alaska Energy Authority described the project as located about 180 miles north of Anchorage. The dam itself would be large: 700 to 800 feet in height, and with a crest length of over 2,700 feet. The dam would impound a 39-mile-long reservoir, flooding 20,000 acres and capable of storing about 2,400,000 acre-feet. The Authority plans to install three 200 MW turbine-generator sets for a total installed capacity of 600 MW, but is considering up to 800 MW of capacity.
The Authority expects the FERC hydropower licensing process to take up to 6 years. The size and impacts of the project make it attractive to some yet controversial to others. Public comments are already being filed in the FERC docket.
Plans to develop a large-scale hydropower project on the Susitna river have been considered for decades. In 2010, the Alaska Legislature established a goal of providing half of the state’s electric power from renewable sources by 2025. The Alaska Energy Authority, a public corporation of the state whose mission is to use Alaska's natural resources to produce electricity and lower costs, concluded that Alaska could not meet the 50% renewable goal without building a major new hydroelectric project.
On December 29, 2011, the Alaska Energy Authority filed a notification of intent to file an application for a hydroelectric license and a pre-application document with the Federal Energy Regulatory Commission. FERC docketed the project as No. 14241. (You can read these documents in FERC's eLibrary here.)
In those documents, the Alaska Energy Authority described the project as located about 180 miles north of Anchorage. The dam itself would be large: 700 to 800 feet in height, and with a crest length of over 2,700 feet. The dam would impound a 39-mile-long reservoir, flooding 20,000 acres and capable of storing about 2,400,000 acre-feet. The Authority plans to install three 200 MW turbine-generator sets for a total installed capacity of 600 MW, but is considering up to 800 MW of capacity.
The Authority expects the FERC hydropower licensing process to take up to 6 years. The size and impacts of the project make it attractive to some yet controversial to others. Public comments are already being filed in the FERC docket.
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