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. New licenses are normally issued for a period of 30 to 50 years.
The Rocky Reach Hydroelectric Project License - FERC No. 2145
Chelan PUD owns and operates the Rocky Reach Hydroelectric Project located on the Columbia River, about seven miles upstream from the City of Wenatchee, Washington. The Federal Power Commission (now FERC) issued a license to build the Project on July 12, 1956. That license expires on June 30, 2006. The construction of the dam and original powerhouse with seven generating units began on October 2, 1956, for the purpose of power production and flood control. The development of the Rocky Reach Project occurred over a period of about 15 years. The addition of four more generating units began in 1969 after ratification of the Columbia River Treaty between the United States and Canada. The additional units were installed primarily to make use of stored water released from reservoirs in Canada and the Libby Dam reservoir in Montana.
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 ECPA law 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 does it cost so much to relicense a hydro project?
The relicensing process is affected by complex laws and regulations that require years of extensive planning, environmental studies and agency/public involvement.
New study requirements prompted by the 1986 Electric Consumers Protection Act have substantially increased relicensing costs. The process requires a licensee to balance power and non-power benefits, such as fish, wildlife, recreation, aesthetics, land use, water use and water quality.
It's a lengthy process. The relicensing process for the Rocky Reach Project began in 1999, even though the original license does not expire until July, 2006.
The consultation process for relicensing involved more than one hundred organizations and several hundred individuals.
Why are we relicensing this Project?
The Rocky Reach Project is a significant factor in Chelan PUD’s ability to provide its customers with some of the lowest electrical rates in the country. Chelan PUD is relicensing the Projects for the following reasons:
to provide electrical utility service to customer/owners at the lowest possible cost
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.
to ensure the continued optimum utilization of the Projects for power production, flood control, irrigation water, recreation, municipal and domestic water supply.
to continue a commitment to protect and enhance the natural resources (fish and wildlife).
How does the ALTERNATIVE relicensing process work?
The formal procedure Chelan PUD is using to relicense the projects 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 draft environmental impact statement for the Project. The final environmental impact statement is expected this summer.
Who was involved in relicensing?
A new federal license the Rocky Reach Project has an impact on numerous individuals and groups, including citizens of Chelan County, property owners, private businesses, agriculture, the tourism and recreation industries, resource agencies, environmental groups, government officials, and Indian tribes.
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 Rocky Reach Project on June 29, 2004. In October, 2006, 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 October, 2006 if NOAA Fisheries and the U.S. Fish and Wildlife Service have completed their biological opinions. FERC is expected to issue an annual license for the Project when the current license expires 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.