[env-trinity] Trinity Journal: TPUD cancels plans to upgrade Lewiston Dam generator

[Tom Stokely]

http://www.trinityjournal.com/news/local/article_f32bc634-9917-11e3-bd61-001a4bcf6878.html 

TPUD cancels plans to upgrade Lewiston Dam generator
Amy Gittelsohn The Trinity Journal | Posted: Wednesday, February 19, 2014 6:15 am
A long-anticipated project of the Trinity Public Utilities District to upgrade the small generator at Lewiston Dam was canceled last week due to escalating costs and failed negotiations with the federal Bureau of Reclamation.
Currently, the generator at Lewiston Dam only powers the fish hatchery.
There was an agreement that the city of Redding would buy the additional power from the Lewiston Project from the TPUD to allow Redding to meet renewable energy requirements mandated by the state. The TPUD is currently exempt from such requirements, but the project was conceived partly as a hedge in case the county loses that exemption. Energy from large hydroelectric facilities such as Trinity Dam upstream is not considered renewable by the state.
In October 2010 the TPUD borrowed money to free up reserves for use on the project.
However, estimated costs of the project increased from $10.8 million to $16 million. Reclamation was to pay $4 million of that amount but the TPUD would still have needed to borrow additional money, increasing the time needed for the project to pay for itself to 28 years, "assuming no construction surprises," General Manager Paul Hauser said at Thursday's meeting of the TPUD board.
"It's my belief the Bureau still wants to see this project go forward," Hauser said.
In an interview, Hauser said the existing unit at Lewiston has reached the end of its life. He said the project was also going to fix some environmental issues by reworking an area where salmonid fry are stranded after high flows subside and by taking water from lower in Lewiston Lake so that cooler water is released to the Trinity River for fish.
However, he said Reclamation is unwilling to provide protections the TPUD has been requesting for the financially tenuous project.
Reclamation wanted to insert language stating that the TPUD must reimburse Reclamation for any actions the district takes that costs Reclamation money. The TPUD wanted reciprocal language.
Hauser explained, "If we started construction and they showed up and said, 'We forgot this. You need to make this change,' I wanted language in there saying they had to pay for that."
"Even if they came back to us tomorrow we'd still miss the construction season?" board member Keith Groves asked.
Hauser said that is true, and another issue is the project was anticipated to be done by now with revenue coming in from Redding.
If it were ordered now it would take a year to get the turbine.
Asked by board member Richard Morris for the Redding perspective on this, Hauser responded, "I would say they're mildly pleased we're canceling the project."
Because of subsidies Redding can get solar power to meet the renewable energy mandate from only 6.5 cents per kilowatt hour compared to the 8.2 cents the city would have been paying the TPUD, he said.
The TPUD could also purchase solar power if required to meet a renewable energy mandate, Hauser said, but he added that the district would fight legislation requiring that.
The board voted 5-0 to cancel the project and send notice to the Bureau of Reclamation.
"I feel badly about this but it's not our fault," board member Tom Ludden said.
The district has begun the process to repay $5.8 million of its debt related to the Lewiston Project this year. Otherwise, debt service on that amount would be $700,000 a year.
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