FERC Issues North Umpqua Hydroelectric Project License.

Business Editors

ROSEBURG, Ore.--(BUSINESS WIRE)--Nov. 13, 2003

New License Ensures Long-Term Benefits to the Natural Resources of

the North Umpqua Watershed and a Reliable Source of Electric Energy

The Federal Energy Regulatory Commission (FERC) today issued a new 35-year operating license for the 185-megawatt North Umpqua Hydroelectric Project owned and operated by PacifiCorp.

The eight-powerhouse project is located in the Umpqua National Forest in the upper reaches of the North Umpqua River and its tributaries about 60 miles east of here and supplies electric energy to PacifiCorp customers. On June 13, 2001, PacifiCorp, the USDA Forest Service, the Oregon Department of Fish and Wildlife (ODFW) and other state and federal resource agencies signed a settlement agreement that sets new conditions for an operating license. On June 28, 2002, the Oregon Department of Environmental Quality issued a water quality certification for the project as required by the Clean Water Act.

That settlement followed a two-year mediated negotiation process among parties to craft a comprehensive package of new terms and conditions for future physical improvements to the project, new operating guidelines, and environmental and resource mitigation measures. Following submission of the settlement to FERC, that agency did a thorough Environmental Impact Statement with opportunities for public comment.

Important new measures include fish passage at Soda Springs Dam to provide access to salmon habitat in the upper North Umpqua River and tributaries. The license also provides significant increases in project-area stream flows to benefit resident fish, enhancements for wildlife species, improvements to public recreation facilities, and protection for more than 40 miles of salmon and steelhead habitat in the Rock Creek basin through habitat conservation easements.

PacifiCorp will invest $67 million in capital improvements to the project over the license term. Increased stream flows in the project area equates to an approximate eight percent loss of generation annually. During the 12-year licensing period, PacifiCorp spent $55 million for administration and to conduct numerous studies that led to the settlement agreement in 2001.

PacifiCorp has invested $350,000 each year since the settlement for erosion control projects, expansion of wildlife crossings, work to enhance riparian habitat, culvert replacements, noxious weed inventory and road decommissioning projects. Also, immediately after the agreement was signed, the company changed project operations to minimize or eliminate impacts on salmon and steelhead downstream as a result of flow fluctuations.

"The license just issued by the FERC builds upon the measures the company has undertaken over the last two years to benefit the area's natural resources as it awaited the new license," said Judi Johansen, PacifiCorp chief executive officer. "We're very pleased that the license appears to include key measures from the settlement agreement and maintains the project as an important source of electric energy for our customers in Roseburg and throughout our service area."

"Over the next 35 years, environmental enhancements will be completed as a result of the new license that will significantly benefit the area's fish and wildlife resources," said Steve Denney, ODFW Southwest Region Manager. "In particular, installation of fish passage facilities at Soda Springs Dam and innovative habitat enhancement activities on private lands in nearby tributaries will provide additional protection and enhancement of the area's prized salmon and steelhead."

"Measures in the license ensure that significant protections are in-place to benefit the area's natural resources over the long term," said Jim Caplan, forest supervisor for the Umpqua National Forest. "We are in good shape to begin implementing these measures now that the license has been issued. We are working in partnership with PacifiCorp, other state and federal agencies, non-governmental organizations, and the local community to develop a series of implementation plans for issues such as erosion control, recreation, and transportation management."

Today's license generally reflects the settlement that PacifiCorp and the state and federal agencies reached; however, PacifiCorp has a 30-day period in which to accept the license and will use that period as a means to assure that the settlement and license are consistent.

Along with PacifiCorp, the Forest Service and ODFW, other parties to the settlement included the U.S. Fish and Wildlife Service, U.S. Bureau of Land Management, NOAA Fisheries, State of Oregon, Oregon Department of Environmental Quality, and the Oregon Water Resources Department.

The North Umpqua Hydroelectric Project was constructed and went into operation between 1947 and 1956. PacifiCorp serves about 500,000 electric customers in Oregon as Pacific Power.