Save Lake Tapps News 7/6/00
Every person in our community should review the document below.
This document was prepared by the Lake Tapps Task Force Economic & Options
Committee.
This document covers the many options which will help save the lake.
Priorization of Components
As Approved by Task Force on February 24, 2000
| LAKE TAPPS TASK FORCE 1/19/00
EO Committee Draft (Sorted by descending Total Score) |
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| OPTION
EVALUATION |
Financial Contribution
to Solution |
Satisfied Interests |
Liklihood of Success
Effort/Complexity |
Commitment Will to Do |
Timeline |
Requires Legislaion |
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Total Score |
Activity |
| Maximum Value |
30 |
25 |
15 |
15 |
10 |
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5 |
95 |
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| 26. Water Rights/Potable
Water |
30 |
25 |
10 |
15 |
2 |
4 |
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86 |
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| 3. Ramping Rates |
22 |
20 |
12 |
15 |
10 |
5 |
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84 |
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| 6. Past License Fee
Forgiveness |
12 |
25 |
15 |
15 |
10 |
5 |
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82 |
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| 2. Minimum In-Stream
Flow - Negotiated |
22 |
20 |
12 |
12 |
9 |
5 |
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80 |
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| 5. Corps of Engineers
Flood Control & Fish Trap |
30 |
23 |
10 |
13 |
2 |
1 |
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79 |
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| 20. State Purchase of
Lake Bottom |
30 |
25 |
7 |
5 |
5 |
2 |
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74 |
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| 8. Public or Local
Ownership of Power Station |
26 |
20 |
8 |
9 |
5 |
3 |
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71 |
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| 14. Power Value
Optimization During the Summer |
11 |
20 |
12 |
12 |
10 |
5 |
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70 |
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| 4. Tailrace Barrier
Modification or Elimination |
18 |
15 |
7 |
12 |
10 |
5 |
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67 |
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| 10. Boat Management and
Recreation Plan |
5 |
25 |
12 |
11 |
9 |
5 |
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67 |
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| 7. Timber Harvest &
Sale of Wildlife Lands |
28 |
12 |
9 |
8 |
5 |
4 |
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66 |
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| 9. Surface Water Management Fee Support
for Dike Remediation |
18 |
23 |
7 |
8 |
6 |
3 |
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65 |
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| 34. Full Lake for Extended Periods |
0 |
21 |
14 |
15 |
9 |
5 |
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64 |
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| 21. Hatchery Operations |
0 |
25 |
8 |
15 |
8 |
5 |
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61 |
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| 12. Lake management District |
20 |
15 |
7 |
8 |
7 |
2 |
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59 |
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| 13. Parks and Recreation Service Areas |
20 |
15 |
7 |
8 |
7 |
2 |
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59 |
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| 18. Reduction in PSE Staffing |
14 |
18 |
6 |
7 |
8 |
5 |
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58 |
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| 28. Sale of Lake Capacity for Flood
Control |
12 |
15 |
10 |
10 |
5 |
5 |
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57 |
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| 17. Flume Repair |
6 |
20 |
8 |
7 |
8 |
5 |
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54 |
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| 1. Minimum In-Stream Flow Study |
14 |
15 |
9 |
8 |
2 |
5 |
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53 |
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| 25. Financial Support from Entities with
Financial Stake |
18 |
20 |
5 |
5 |
3 |
2 |
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53 |
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| 11. Pierce County Conservation Futures
Funding |
4 |
22 |
5 |
9 |
7 |
5 |
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52 |
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| 27. Flow Coordination with Mud Mountain
Dam |
12 |
20 |
2 |
5 |
5 |
5 |
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49 |
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| 16. Park Fees |
4 |
9 |
9 |
10 |
8 |
5 |
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45 |
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| 22. TEA21 Funds for Flume Trail |
5 |
16 |
5 |
5 |
4 |
5 |
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40 |
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| 15. Waste Water Treatment Plant |
3 |
5 |
7 |
4 |
6 |
5 |
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30 |
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| 29. Annexation |
10 |
10 |
1 |
1 |
2 |
1 |
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25 |
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| 30. Incorporation |
10 |
10 |
2 |
1 |
1 |
1 |
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25 |
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| 32. Public Utility District |
10 |
7 |
1 |
1 |
2 |
1 |
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22 |
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| 23. Sale of Project Lands |
5 |
6 |
3 |
1 |
1 |
5 |
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21 |
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| 24. Sale of Associated Lands |
5 |
6 |
1 |
1 |
1 |
5 |
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19 |
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| 31. Operation of the Lake without Power
Generation |
0 |
7 |
1 |
1 |
4 |
5 |
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18 |
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| 33. Mandatory Project Retirement |
0 |
0 |
0 |
0 |
4 |
5 |
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9 |
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| 19. Utilities and Transportation
Commission/Stranded Costs |
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Insufficient Information |
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| Key: |
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| Green = Most Active |
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| Yellow = Semi Active |
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| Red = Least Active |
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| Black = No Activity |
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Lake Tapps Task Force
Component Evaluation and Prioritization Process
Presented to White River Basin Symposium
By Shawn Bunney
Pierce County Council Staff
March 31, 2000
The Lake Tapps Task Force Economics and Options (EO) Committee was created by
the Task Force to provide objective research and analysis on the economics and
viability of options being considered by the Task Force to create a licensing
settlement package acceptable to the involved parties. The Committee began its
work in September 1999.
During the first two months of work the EO Committee built the foundation
upon which it would conduct its work. The foundation included reaching agreement
on an economic model to use to examine and compare the fiscal impacts of various
options or suboption components against the economic baseline of the project if
the projects were to operate under the 1997 proposed licensing conditions. The
economic model shows us that under the 1997 FERC license conditions, the project
will lose between $35 million and $80 million in Net Present Value over the
first 20 years of a 50-year license term. The model also showed that it is
unlikely that any one solution will create enough revenue to solve the problem.
In other words, the solution will require a compilation of components or
options. The foundation also includes the identification of every potential
component of a solution. We identified 34 components as shown on the attached
evaluation sheet. Finally, the foundation included the development of common
criteria and format to use to evaluate objectively each component presented for
review.
In November and December 1999, the EO Committee began the process of
organizing and evaluating the agreed upon components using the agreed upon
format for evaluation. EO Committee members and other Task Force members
volunteered either to provide the first draft of component evaluations or to
provide a review and analysis of components already drafted. By circulating the
various drafts among the various stakeholders we believe the work product of the
EO Committee to be more objective and complete. Breaking up the work among
various volunteers also allowed the work product to move forward at a much
faster pace. At its December 1999 meeting, the Task Force authorized the
submittal of a 94-page evaluation of the 34 components to FERC as part of our
quarterly report.
In January the EO Committee developed a ranking and prioritizing process to
assist the Task Force in making key decisions about where to focus its limited
time and resources. The EO Committee also took the first cut at ranking the
components. Factors which were used to measure the components were (1) financial
contribution to a solution; (2) satisfies the interests of the stakeholders; (3)
likelihood of success; (4) commitment, or will to do; (5) shorter timeline; and
(6) whether the component would require legislation. The EO Committee presented
the results of its ranking and prioritization recommendations at the January
Task Force meeting where a facilitated workshop was conducted. The Task Force
approved a prioritization of the components at the February Task Force meeting.
Following is a summary of those components deemed by the Task Force to be the
most viable and, therefore, are the components in which the Task Force will put
most of its time and resources into developing.
MOST ACTIVE COMPONENTS
Water Rights/Potable Water – The focus of this component is to seek
opportunities for potable use of Lake Tapps water. Puget Sound Energy owns a
pre-water code (1890) right to divert up to 2,000 cubic feet per second from the
White River. The Task Force Water/Public Works Committee has been assigned the
lead on discussions on how this water right may be used for potable water.
Discussions have included whether the water right supersedes existing water
code, what groundwater benefits the lake creates through infiltration, and what
type of adjudication or basin planning process will be necessary to perfect this
water right for potable use.
Ramping Rates – Ramping Rates are the rate at which water is diverted
from or returned to the river. The ramping rate impacts the river, the lake,
fish habitat, and the economics of the hydroelectric plant. The focus of this
component is to conduct additional stranding/trapping studies in the Puyallup
River to supplement detailed studies already completed in the White River which
could confirm whether ramping and/or how much ramping constraints are necessary.
Fiscal impact for this component could be as high as $750,000 over the first 20
years of the license.
Past License Fee Forgiveness – The proposed 1997 license issued by FERC
requires the applicant to pay past license fees back to 1992 at a cost of
approximately $1.2 million. Changes in FERC policy may eliminate the need to
include this provision in the settlement offer.
Negotiated Minimum Instream Flows – The instream flow requirements in
the 1997 FERC license are more than those agreed to in a 1986 Muckleshoot/PSE
agreement and less than the flows being proposed by the National Marine
Fisheries Service and the Washington Department of Fish and Wildlife. The focus
of this component is to achieve a collaborative resolution of the flows issue by
creating a flow budget which could be reallocated by the resource agencies (NMFS,
USFWS, WDFW, and WDOE) to more closely match the needs of fish while placing a
financial cap on PSE cost exposure. The total estimated benefit to this approach
would be approximately $800,000 per year over the flow conditions as currently
proposed in the FERC license.
Corps of Engineers Flood Control and Fish Trap – The Corps of Engineers
has operated a fish trap at the Buckley Diversion Facility since 1948. At the
time of the construction of the fish trap, the Corps of Engineers removed PSE’s
fish ladder allowing for fish passage above the Diversion and started trucking
fish to the upper watershed. If the project were to cease operation, or if the
diversion dam were to fail, the Corps of Engineers would lose its method for
providing fish passage to the upper watershed. The proposed license requires
replacement of the diversion dam at an estimated cost of $12.5 million. The
focus of this component is to explore whether there is a federal interest in
rebuilding the diversion dam to protect the Corps’ fish passage interest.
There is a General Investigation Grant in the 2001 Corps of Engineers budget
currently before Congress to study this issue.
State Purchase of Lake Bottom – the lake bottom is owned by Puget Sound
Energy. Perhaps the largest threat to the community is the prospect of PSE
selling the lake bottom for development. Most of the lake bottom in Washington
State is owned by the State. The focus of this component is to explore
opportunities for the State to purchase the lake bottom as part of a
collaborative solution to preserve the fourth most popular recreational lake in
Washington State.
Public or Local Ownership – The focus of this component is to explore
the prospect of public ownership as a possible way to save the lake. This effort
has been led by a homeowner group, the Save Lake Tapps Coalition, which has been
looking at public ownership opportunities for more than a year. The work of the
homeowners shows there may be significant cost savings due in part to the tax
code and in part to the fact that the project could be operated without an
allowed rate of return to stockholders. However, acquisition and operation of
the project by a public entity would be a massive undertaking probably only used
as a last resort.
Power Value Optimization During Summer – Traditionally, the project has
operated with a full lake from Memorial Day to Labor Day. Due to changes in the
power market, the summer months offer greater opportunities for energy sale. If
the lake can be varied by as 12 inches during the summer without impacting
recreational use, an additional $50,000 to $100,000 per year savings could be
realized.
Tailrace Barrier Modification or Elimination – The proposed 1997
license requires PSE to construct a tailrace barrier at the bottom of the
tailrace (where the water exits the hydroelectric facility and reenters the
river) to prevent adult salmon and steelhead from entering the tailrace. The
estimated cost is $7 million to the project. The focus of this component is to
examine whether this requirement is necessary and, if so, to explore more cost
effective ways to keep the fish out of the tailrace.
Wildlife Mitigation Conditions – Seven tracts of land valued in 1990 at
over $13 million were included in a Wildlife Management Plan negotiated among
DFW, USFWS, and PSE. Subsequently, the Wildlife Plan was included as part of the
1997 proposed FERC license. Since 1990, FERC’s interpretation of appropriate
baseline to determine project impacts has been refined. FERC has said that the
baseline for reviewing for wildlife mitigation and enhancement is the time of
the proposed action and does not require mitigation back to the time the project
was constructed.
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 a financial solution. Many
of the other components such as Summer Fluctuations and Potable Water may impact
the availability of the lake for recreational use. The Task Force placed a high
priority on the Lake Viability component to ensure that community concerns about
the length of usable lake and time of year, the protection of lake environmental
assets such as wetlands, fish habitat, animal habitat, long term certainty,
local control, water quality, and safety are all addressed as part of a
settlement. There is also a discussion of the formation of a Lake Management
District by the community to provide an equitable contribution for benefits
received through settlement.
Boat Management and Recreation Plan - The proposed 1997 license would
require PSE to develop a boat management plan at the estimated cost of $50,000.
While $50,000 is a very small amount compared to the operations gap, the Task
Force has concluded that Boat Management is a local concern and that efforts
should be made to find a local sponsor for this effort.
Hatchery Operations – Puget Sound Energy and the Muckleshoot Tribe have
a dispute which stems from a 1986 settlement agreement with respect to Puget
Sound Energy’s responsibility for paying operation and maintenance costs for
the Muckleshoot Hatchery. While this component will not benefit the bottom line
of the project, the Task Force identified this issue as a high priority and
wants to work with the Tribe to resolve this issue as part of whatever
settlement is reached.
WHAT’S NEXT
In the Motion for Stay of the Licensing Proceedings, the Task Force committed
to a timeline that sets a September 2000 milestone for establishment of an
agreement in principle. The Task Force is currently focused on developing a
process that will bring the stakeholders together on a common vision by then.
Because there are so many different issues and stakeholders, it is likely that
the agreement in principle will be a composite of various smaller agreements.
The Task Force will also be conducting some public opinion work to build a
record for deciding which combination of components are most desirable by the
region and community.
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