Gov. Kulongoski lauds progress toward restoration of Hood River watershed

HOOD RIVER, Ore. – PacifiCorp today said that it received a Surrender Order from the Federal Energy Regulatory Commission (FERC) for its six-megawatt Powerdale Hydroelectric Project on the Hood River in Hood River, Oregon.

The FERC action had been expected. A surrender order occurs when a licensee wishes to cease operations of a hydroelectric facility. In the case of Powerdale it validates the all-parties settlement agreement reached in 2003, under which the project will continue operations until 2010 when Powerdale will be decommissioned.

When the settlement was signed, Gov. Ted Kulongoski led an event with settlement parties including PacifiCorp, state and federal resource agencies, the Confederated Tribes of the Warm Springs Reservation of Oregon, American Rivers and the Hood River Watershed Group.

“This Surrender Order will bring significant improvement to the Hood River watershed and will bring real benefits to migratory salmon and steelhead,” said Governor Kulongoski. “The settlement achieves the goals of both preserving the interests of PacifiCorp's Oregon customers and improving the health of the Hood River.”

Ron Suppah, chairman of the Warm Springs Tribal Council commented, "PacifiCorp has acted as a responsible corporate citizen throughout this process and is to be commended. The agreement to remove the project, protect hatchery operations and improve fish habitat, while at the same time mitigating impacts on PacifiCorp’s customers, is a fair solution for all involved."

“We believe that decommissioning the Powerdale Project is the best outcome for PacifiCorp and its customers,” said Therese Hampton, managing director, Hydro Regulatory Compliance. “Had we chosen to pursue a new operating license, we expected new terms and conditions that would have been expensive. These costs would be in addition to long-term upgrades to power generating equipment required at the project.”

Hampton went on to say that in this situation it is more cost effective to seek new power resources that replace projects which require considerable future investment. At six megawatts, Powerdale represents a small fraction of PacifiCorp’s installed capacity of 8,400 megawatts.

In 2010, PacifiCorp will begin to remove the Powerdale diversion dam, which is located on Hood River approximately 4.5 miles upstream of the Columbia River. The settlement also provides that PacifiCorp will transfer to an agreed-upon public entity the 465 acres of land associated with the hydroelectric project, thereby protecting the natural character of the Hood River Basin as it approaches the Columbia River. PacifiCorp will also provide more than $150,000 in a trust fund to ensure future maintenance of these lands. The historic powerhouse will remain in place, but the tower with the surge tank will be removed.

The settlement provides continued operations through 2010 to allow completion of an important fisheries study currently underway by the Oregon Department of Fish and Wildlife and the Confederated Tribes of the Warm Springs Reservation, co-fisheries managers in the Hood River Basin. The studies depend on a fish counting station at the Powerdale diversion.

PacifiCorp has 30 days to review the Order and assure that it is consistent with the settlement agreement and either accept, reject or seek re-hearing of the Order.

Powerdale was first put into service in 1923 and has been operated for the customers of PacifiCorp ever since.

PacifiCorp serves 1.6 million customers in six western states as Pacific Power and Utah Power. The company operates an 8,400-megawatt power system consisting of hydro, thermal, wind and geothermal generation.

Media inquiries:Newsdesk@PacifiCorp.com .