What is a hydro license?
The Federal Power Act (FPA) of 1920 provides the Federal Energy Regulatory Commission (FERC) exclusive authority to license all nonfederal hydroelectric projects that are located on navigable waterways or federal lands. Lake Chelan is a navigable waterway and is partly located on federal lands. Licenses are normally issued for a period of 30 to 50 years.
The Lake Chelan Hydroelectric Project License - FERC No. 637
Public Utility District No. 1 of Chelan County (Chelan PUD) owns and operates the Lake Chelan Hydroelectric Project located on the Chelan River in Chelan, Washington. Chelan PUD is permitted to operate the Hydro Project according to terms and conditions contained in an existing FERC license that was issued on May 12, 1981. The license expired on March 21, 2004.
The original license was granted for the present Lake Chelan Hydro Project in May, 1926, by the Federal Power Commission, now FERC. On May 12, 1981, FERC granted Chelan PUD a new 30-year license for the Hydro Project, retroactive to 1974 when the original 50-year license expired.
What is relicensing?
The FERC relicensing process requires years of extensive planning, including environmental studies, agency consensus and public involvement. The Federal Power Act (FPA) was amended in 1986 by the Electric Consumers Protection Act (ECPA). The EPCA requires that FERC give equal consideration to the non-generating benefits of the natural resource (fish, wildlife, aesthetics, water quality, land use, and recreational resources, for example) along with the benefit of power production.Why are we relicensing this Project?
The Lake Chelan Project is a significant factor in Chelan PUD’s ability to provide its customers with some of the lowest electrical rates in the country. Among the reasons Chelan PUD will be relicensing the Lake Chelan Project: 1) to provide electrical utility service to customer/owners at the lowest possible cost; 2) to provide a low-cost energy source that is renewable and non-polluting, and which has a significant positive economic impact on the economy of Chelan County 3) to ensure the continued optimum utilization of the lake for power production, flood control, irrigation water, recreation, municipal and domestic water supply and 4) continue a commitment to protect and enhance the natural resources (fish and wildlife) of the Lake Chelan Hydro Project.
How does the ALTERNATIVE relicensing process work?
The formal procedure Chelan PUD is using to relicense the Lake Chelan Project is known as the "alternative relicensing process". Several elements that make the alternative relicensing method unique are: 1) all stakeholders are involved early in the process; 2) FERC’s review and acceptance of the license application is completed more quickly; 3) environmental measures may be implemented sooner due to a shorter processing time; 4) FERC staff is better informed and attuned to local positions; 5) provides local and state participation and local decision making.
The National Environmental Policy Act (NEPA) requires all federal agencies involved in relicensing activities that affect the environment to evaluate the significance of those activities and assess reasonable alternatives in an "environmental assessment" or "environmental impact statement.". Using the alternative licensing process, Chelan PUD worked with federal, state and local agencies, Indian tribes and the public to complete an environmental assessment (EA). The EA identified environmental issues and concerns and studies needed to address those issues. FERC used this EA as the basis for its environmental impact statement for the Project.
Who was involved in relicensing?A new federal license for the Lake Chelan Project has an impact on numerous individuals and groups, including Lake Chelan Valley property owners, private businesses, agriculture, the tourism and recreation industries, resource agencies, environmental groups, government officials, Indian tribes and citizens of Chelan County.
Chelan PUD exceeded FERC requirements for public involvement in the relicensing process. To facilitate these efforts, Chelan PUD developed an extensive public outreach plan to provide numerous opportunities for clear, comprehensive and two-way information sharing between Chelan PUD and the public. Over the course of the relicensing process, citizens were kept informed about issues through newsletters, public meetings, small group or person-to-person meetings, and presentations. This web site also contains the entire record of the relicensing process.
What is the status of the relicensing process?
Chelan PUD submitted the final license application for the Lake Chelan Project on March 28, 2002. In October, 2003, Chelan PUD submitted a Comprehensive Settlement Agreement with federal, state and local stakeholders. FERC is currently reviewing the Agreement and may issue a new license for the Project as soon as this summer. The Lake Chelan Project's current license expired on March 31, 2004. Chelan PUD is currently operating the Project on annual extensions of the license until FERC issues the new long-term license, which is expected this summer.
Chelan PUD has formed a core relicensing team, responsible for implementation of the relicensing plan. Click here, for a list of the team members and area of responsibilities. If you have any questions or comments regarding the relicensing process, please feel free to contact any of these individuals.