|
| |
SAVE LAKE TAPPS COALITION & PSE
Bus Tour
June 24, 2000
Text By John Farrell
HOW DID WE GET HERE:
In 1997 the Federal Energy Regulatory Commission (FERC) issued a license to
Puget Sound Energy (PSE). The conditions in this license made the project
uneconomic.
Two Federal Laws contributed significantly to this problem:
- The Federal Power Act: this opened transmission lines up to any wholesale
provider producing energy. This meant that the Washington Utilities and
Transportation Commission (WUTC) when considering rate changes needed to
compare costs to the cheapest wholesale market. Since the White River Power
Project produces energy at a higher cost than the wholesale market, the WUTC
may not allow those costs to be passed on to ratepayers. To make this worse,
conditions in the license would add another thirty million in capitol costs
to the project.
- The Endangered Species Act: this act resulted in the listing of White
River Salmon and threatened. To protect the fish, both in rearing and
migration, the National Marine Fisheries Service (NMFS), along with US Fish
& Wildlife and our State Fish & Wildlife, are asking that less water
be diverted into Lake Tapps making less water available for producing power.
In summary, the license requires a 30 million dollar investment and will
have less water to generate income. Since the ratepayers won’t pay for it,
and PSE’s shareholders don’t want to pay for it -- we have a problem.
WHAT ARE WE DOING ABOUT IT?
Under the leadership of Doug Sutherland and Jan Schabro Pierce County
initiated the Lake Tapps Task Force. Represented on the Task Force are Homeowner
Associations, Save Lake Tapps Coalition, Friends of Lake Tapps, The cities of
Bonney Lake, Buckley, Sumner, Auburn, and Enumclaw, our state senator and
representatives, state and federal wildlife agencies, State Dept of Ecology,
Puget Sound Energy, and others who have a stake in this process.
The Task Force is structured into 5 committees: administrative, legislative,
Biology, Water/Public Works, and Economics and Options. The work in those
committees has resulted in the following options being worked on at this time.
- Water Rights/Potable Water -- The focus of this component is to seek
opportunities for potable use of Lake Tapps water. The unique situation is
that our reservoir not only works well for storing water for powering
turbines; it also works for storing water for human consumption. PSE is
asking for a water right of 100 cubic feet per second. This compares to the
2000 cubic feet per second that the project is entitled to use to generate
power. This component would allow the project become financially viable but
requires heavy investment in a treatment plant at the beginning. So far,
this option has not run into an impossible barrier and we are hoping that we
can accomplish this for the project.
- Ramping Rates -- Ramping deals with fluctuations in the river as the water
leaves the power plant. In some projects, turning off the water coming from
the turbines too quickly strands fish in the river downstream of the
tailrace. Studies on the White River Project, however, indicate that this is
not a significant problem with this project. Therefore we are asking that
ramping restrictions be eased for the project resulting in a more efficient
use of the turbines.
- Past License Fee Forgiveness -- the Federal Energy Regulatory Commission
has already agreed to do this at a cost saving of about 1.2 million to the
project.
- Negotiated Minimum In stream Flows -- There are many biological opinions
on whether more flows or less flows are needed to optimize rearing and
migrating patterns of the White River Chinook Salmon. Due to the listing of
this salmon, the National Marine Fisheries Service will determine the flow
regime. What we have accomplished is that all sides, including PSE, state
Fish & Wildlife, Federal Fish & Wildlife, and outside consultants
have had a thorough discussion based upon fulfilling the needs of the
salmon. We pleased that the federal agencies have committed to listening to
all sides of this issue. A biological opinion will be forthcoming from NMFS
in the next few weeks and the economic affect of the flow regime will be
known.
- Public or Local Ownership -- the idea here was that if local citizens were
going to be taxed to support the White River Project there be savings if a
public entity owned the project. The reasoning was that a public project
would not have to pay a return on investment to shareholders, would save on
federal income tax, and would be able to finance the project at a low
interest rate. Upon further study the following problems were discovered:
- The debt would be in excess of 80 million. This is more debt that Pierce
County has.
- Debt payments would be high in the beginning of the loan causing the
project to have negative cash flow. This is due to the high risk of the
project to potential investors.
- Power Value Optimization During Summer -- we will be polling the community
to see what level of fluctuation would be acceptable during the summer
months so that PSE could sell more power during rate fluctuations during the
summer. There are times when rates are very high and the project could make
windfall profits if allowed to use several inches of the lake for this
purpose.
- Talirace Barrier Modification or Elimination -- this deals with the
propensity of fish to stray (trying to swim up the tailrace) before swimming
up the bypassed reach of the river. The original barrier had a cost of about
3 million dollars. We are asking that cheaper means be used, since it has
not been proven that this is a significant problem in the river. The money
could better be spent in other areas benefiting fish.
- Wildlife Mitigation Conditions -- this has been the most difficult option.
There is an estimated 10 million dollars of timber that could be harvested
on the approximate 3000 acres adjacent to the bypassed reach of the White
River. In 1992 PSE and State Fish & Wildlife reached an agreement that
this land would be set aside as a wildlife buffer/preserve and that PSE
manage these wildlife lands. The Task Force would like to revisit this
agreement and try and work out a 20 year plan to harvest this timber without
doing significant damage to this preserve. The question revolves around an
equitable settlement to provide for mitigation and enhancement of the White
River Project.
- Viable Lake for Extended Periods -- Preserving and enhancing Lake Tapps as
a community and regional asset is an important component and ranked high
even though lake viability itself does not contribute to the financial
solution. Citizen groups on the task force are studying the possibility of a
lake management entity to enter into the FERC agreement to assure a long
term agreement. This long term agreement would provide protection to the
homeowners and would replace the "gentleman’s agreement" that
currently defines lake levels.
- Boat Management and Recreation Plan – this would be a component that
could be included in the lake management entity. This would give citizens
greater control over boat traffic and safety on the lake.
- Hatchery Operations -- Puget Sound Energy paid for the Muckleshoot
Hatchery as the result of an agreement in 1986. Currently, however, there is
a disagreement among PSE and the Muckleshoots as to who should pay for
continued maintenance of this hatchery. Since these fish are listed and are
an important part of the recovery process the Task Force is hopeful that
agreement can be reached though this collaborative process.
- Corps of Engineers: The Corps of Engineers has two interests in the White
River Hydro Project. The most important is the fish trap located at the
diversion dam. The Corps is responsible to move fish from the fish trap to
the upper watershed since fish are unable to pass through Mud Mountain Dam.
The fish ladder is an works well with and depends on the diversion dam. If
the project were to go away, the Corps would have to invest a great deal of
money to create a structure to allow the continued operation of the fish
trap. Secondly, the Corps in 1995 and 1996 used some of the capacity of Lake
Tapps Reservoir to take some of the flood pressure off the White River. The
Corps has worked very hard in the collaborative process and has provided ½
the funds for the upcoming public survey.
- State purchase the lake bottom -- while this would be a help, as it would
retire some of the capitol out of the White River Project with the proceeds,
we have not made much progress on this option. The next step is to establish
a value for the lake bottom. The reasoning is that the state owns the lake
bottom on all the lakes in the state and Lake Tapps is said to be the 4th
busiest recreational lake in the state.
WHAT IS THIS ALL GOING TO COST THE COMMUNITY?
The quick answer is: WE DON’T KNOW! (YET)
There are two main scenarios:
(it is important to note that these are my opinions and are only meant to
give you an idea of what is going on in this process)
- The Lake Tapps Task Force is successful enough with the above listed
components that we have conditions that allow PSE to accept the license. In
this scenario, the citizens should form a Lake Management Entity to be
involved in the FERC license and negotiate terms that are favorable,
predictable, and long term. Items would be extended lake levels, boating
safety, quality of the water, wildlife in and around the lake, and other
issues important to people who live on the lake and the people of the
community and state who use the lake. The cost to homeowners affect would be
none or small and this "entity" would be fairly small -- 2000 to
5000 homes.
- This second scenario is a little more serious. If the Task Force is
unsuccessful in helping to create conditions that allow for an economic
license, a much larger community will have to be involved in the solution.
It is suggested that homes in the fire districts, school districts, and
others (who would be affected should the property tax burden be shifted from
lakeside homes to all the homes in these districts) would be participating
in this lake management entity -- this would be estimated at about 15000 to
20000 homes. It is impossible to say at this time what the tax amounts would
be; obviously larger for those homes who receive the most benefit and
smaller for the homes who receive the least benefits.
WHAT DO WE WANT YOU TO DO?
Support the efforts of the Task Force any way you can. There are several
organizations you can join. Visit our website SAVELAKETAPPS.COM to learn how you
can become a member. We use our funds to communicate to the community. Thank
you!
|