Local coalition’s offer could stop decommissioning of Kilarc-Cow Creek Hydro Project
A local coalition wants to save Kilarc Reservoir, a popular fishing recreation facility above Whitmore, and associated green hydropower facilities on two Cow Creek tributaries (known as FERC Project 606) by buying the existing facilities from PG&E for up to $1.1 million.
The public filing was submitted January 22 to the Federal Energy Regulatory Commission by a coalition consisting of Shasta County, Sierra Pacific Industries, the Abbott Ditch Users, Tetrick Ranch and Evergreen Shasta Power.
Some of the revenue generated by the hydropower facilities would be used by the coalition to maintain the recreational facilities at Kilarc.
In addition, the coalition offer includes preparation of exemption applications, a cost of $1.5 million, plus an increase of in-stream flows compared to current Project license conditions.
The settlement offer also includes improvements to a fish ladder on the South Cow tributary and the establishment of a 25-year fund for habitat restoration and water quality in the Cow Creek Watershed.
The proposed a settlement and resolution would prevent the decommissioning of the Kilarc-Cow Creek Hydro Project by authorizing a new operator to continue operations on an economic and improved environmental basis. Two exemption applications would be required, one for the South Cow Creek Development and one for the Kilarc Development on Old Cow Creek.
The group also asked that FERC promptly establish a settlement proceeding in Sacramento to further consider and develop its alternative to retain the present Project 606, in cooperation with the other stakeholders. The coalition, which includes the government of Shasta County, has received public support from the Save Kilarc Committee and many individuals in the Community of Whitmore and in Shasta County.
FERC is in the process of evaluating PG&E’s license surrender application, and FERC’s Draft Environmental Assessment (DEA) is scheduled for issuance soon. In their January 22 filing, the Group suggested delaying the DEA until a settlement proceeding was held and FERC had time to receive answers to questions concerning the claimed benefits to the fish from the decommissioning and how PG&E intended to resolve the water rights issues for the Abbott Ditch Users and Tetrick Ranch, as well as consider the Group’s Alternative.
According to Erik Poole, the Group’s spokesperson, these basic questions have yet to be answered, but they go to the merits of whether the Kilarc-Cow Creek Project should be decommissioned.
The Alternative presented would avoid the currently projected $14.5 million dollars in ratepayer expenses for decommissioning, the loss of the recreation at Kilarc Lake, and the gutting of two operating hydro plants that produce reliable green energy.
It would also avoid litigation certain to result from the loss of a conveyance system, which PG&E proposes to destroy, that is now used to deliver water to the Abbott Ditch Users, property rights conflicts resulting from decommissioning, as well as potential contamination problems from the decommissioning.
The Settlement proposes that Evergreen Shasta Power, LLC, a new, local entity, would acquire the facilities from PG&E and proceed to obtain authorization from FERC to operate the facilities under two separate License Exemption Applications. As acceptable conditions of the exemptions, Evergreen Shasta would provide greater in-stream flows for fish and payments to the County for recreation maintenance at Kilarc, retain Kilarc Lake for recreation and fire fighting, and establish a fund for habitat restoration and ditch maintenance in the Cow Creek watershed to improve habitat and water quality.
Under FERC’s rules, parties have 20 days to respond to the Settlement Alternative and can also respond to the Motion for Settlement Proceeding, as well as the other documents filed by the Group asking FERC to authorize it to make it possible for the community to retain these facilities and the benefits they provide while establishing an economically viable project.
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