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<p class=MsoNormal style='background:white'><st1:place w:st="on"><b><font
size=4 face=Tahoma><span style='font-size:14.0pt;font-family:Tahoma;
font-weight:bold'>KLAMATH RIVER</span></font></b></st1:place><b><font size=4
face=Tahoma><span style='font-size:14.0pt;font-family:Tahoma;font-weight:bold'>:<o:p></o:p></span></font></b></p>
<p class=MsoNormal style='background:white'><b><font size=4 face=Tahoma><span
style='font-size:14.0pt;font-family:Tahoma;font-weight:bold'>Klamath dam
removal study questioned; Utility says projections of savings wrong<o:p></o:p></span></font></b></p>
<p class=MsoNormal style='background:white'><b><font size=4 face=Tahoma><span
style='font-size:14.0pt;font-family:Tahoma;font-weight:bold'>Associated Press
– 3/13/07<o:p></o:p></span></font></b></p>
<p class=MsoNormal style='background:white'><b><font size=4 face=Tahoma><span
style='font-size:14.0pt;font-family:Tahoma;font-weight:bold'>By Jeff Barnard,
staff writer<o:p></o:p></span></font></b></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>GRANTS PASS, Ore. - PacifiCorp told federal dam
regulators Monday that it might actually save money by upgrading four
hydroelectric dams on the Klamath River to protect salmon, contrary to a widely
circulated report that estimated it made economic sense to remove the dams.<o:p></o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>In a filing with the Federal Energy Regulatory
Commission, the Portland-based utility said it had commissioned a review of a
report done for the California Energy Commission by M. Cubed consultants of <st1:place
w:st="on"><st1:City w:st="on">Davis</st1:City>, <st1:State w:st="on">Calif.</st1:State></st1:place>,
which had found PacifiCorp could save $101 million by removing the dams and
buying replacement power.<o:p></o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>Christensen Associates Energy Consulting, LLC, of <st1:place
w:st="on"><st1:City w:st="on">Madison</st1:City>, <st1:State w:st="on">Wis.</st1:State></st1:place>,
found problems with the economic model used to make the initial estimate, as
well the data fed into the model.<o:p></o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>Problems were such that no good estimate could be
reached. But when data fed into it was corrected, the model came up with an
estimate that PacifiCorp would save $46 million by upgrading the dams and
continuing to operate them, Christensen Associates Vice President Dan Hansen
said.<o:p></o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>The M. Cubed report only looked at removing all four
dams, the review added. Looking at the dams individually, the model indicates
it makes sense to remove the Iron Gate Dam, but Copco No. 2 and J.C. Boyle
would be profitable.<o:p></o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>''The CEC report is clearly not an appropriate tool to
help us and other interested stakeholders make any of these very difficult
decisions,'' PacifiCorp energy President Bill Fehrman said in a statement.<o:p></o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>The California Energy Commission received a copy of
the Christensen Associates review, but had not yet had a chance to go over it
fully, commission spokeswoman Susanne Garfeld said.<o:p></o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>Richard McCann of M. Cubed did not immediately return
telephone calls for comment.<o:p></o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>PacifiCorp, which serves 1.6 million customers in six
Western states, is seeking a new license to operate the dams for up to 50
years.<o:p></o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>Indian tribes, commercial fishermen and conservation
groups have been trying to convince PacifiCorp to remove the dams to expand
habitat and improve water quality for salmon struggling to survive in the <st1:place
w:st="on">Klamath River</st1:place>.<o:p></o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal style='background:white'><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>PacifiCorp has said it would be willing to remove the
dams if it could be done in a way that benefits its customers. It has also said
it is willing to spend $300 million to upgrade the dams, arguing they are an
important source of electricity free of the carbon emissions blamed for global
warming. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=4 color=black face="Times New Roman"><span
style='font-size:14.0pt;color:black'><a
href="http://www.montereyherald.com/mld/montereyherald/news/nation/16892789.htm"
title="http://www.montereyherald.com/mld/montereyherald/news/nation/16892789.htm">http://www.montereyherald.com/mld/montereyherald/news/nation/16892789.htm</a><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=4 color=black face="Times New Roman"><span
style='font-size:14.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=4 color=black face="Times New Roman"><span
style='font-size:14.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=4 color=black face=Tahoma><span
style='font-size:14.0pt;font-family:Tahoma;color:black;font-weight:bold'>Owner
of <st1:place w:st="on">Klamath River</st1:place> dams attacks study;
PacifiCorp disputes claims that it would be cheaper to remove the barriers
blocking the migration of endangered salmon than to keep them<o:p></o:p></span></font></b></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><b><font size=4
color=black face=Tahoma><span style='font-size:14.0pt;font-family:Tahoma;
color:black;font-weight:bold'>Los Angeles</span></font></b></st1:City></st1:place><b><font
size=4 color=black face=Tahoma><span style='font-size:14.0pt;font-family:Tahoma;
color:black;font-weight:bold'> Times – 3/13/07<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=4 color=black face=Tahoma><span
style='font-size:14.0pt;font-family:Tahoma;color:black;font-weight:bold'>By
Eric Bailey, staff writer</span></font></b><font size=4 color=black><span
style='font-size:14.0pt;color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=4 face="Times New Roman"><span style='font-size:
14.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><st1:City w:st="on"><font size=4 face="Times New Roman"><span
style='font-size:14.0pt'>SACRAMENTO</span></font></st1:City><font size=4><span
style='font-size:14.0pt'> — The power company that owns four <st1:place
w:st="on">Klamath River</st1:place> dams blocking the migration of imperiled
salmon launched a counterattack Monday against a recent government study that
declared it cheaper to remove the structures than to keep them.<br>
<br>
Officials at Portland-based PacifiCorp said the study released by the
California Energy Commission failed to account for certain unavoidable costs
that could dramatically increase the price of demolition.<br>
<br>
Bill Fehrman, president of PacifiCorp Energy, said the true costs of purchasing
electricity to replace what would be lost if the dams were removed could cause
the price of decommissioning the dams to skyrocket. <br>
<br>
The commission study relied on a financial model that was "riddled with
errors," making it unreliable, Fehrman said.<br>
<br>
"We want good science, and we want good economic analysis," he said,
adding that the study "is lacking on both counts."<br>
<br>
The Klamath, which emerges from the Cascade Range in Oregon and empties into
the Pacific Ocean north of Eureka, once was the nation's third-most productive
salmon river, with up to 1.2 million salmon and steelhead trout joining an epic
annual migration to spawn.<br>
<br>
Today, the river's coho salmon are on the endangered species list, and its
chinook salmon have suffered such a steep decline that the 2006 commercial
season was virtually shut down on the West Coast.<br>
<br>
Activists favor decommissioning four towering hydroelectric dams on the
Klamath, a move that would reopen more than 300 miles of river that have been
blocked to migrating salmon for more than half a century.<br>
<br>
Their position was buoyed by the energy commission's study, released in
December, which found that decommissioning the dams could cost $100 million
less than operating them for another generation.<br>
<br>
That study concluded that the cost of demolishing the dams and buying
market-rate electricity to offset the lost hydropower over the next three
decades would be far less than installing the vast infrastructure and making
the improvements needed for the dams to win license renewal.<br>
<br>
But PacifiCorp executives say that finding was based on faulty assumptions used
to evaluate future energy costs.<br>
<br>
Citing a study by Christensen Associates Energy Consulting LLC, the company
said the commission's review was marred by errors and inconsistencies in the
pricing of replacement power, failure to include future carbon emission taxes
as part of replacement-energy costs and an inappropriate discount rate for
financing.<br>
<br>
"Removal of a project the size of Klamath would be unprecedented in <st1:place
w:st="on">North America</st1:place> and, to our knowledge, in the world,"
Fehrman said. "This is complex. It's not a simple matter of removing some
concrete slabs."<br>
<br>
Susanne Garfield, a spokeswoman for the California Energy Commission, said
officials at that agency had just begun reviewing PacifiCorp's report.<br>
<br>
"I'm sure this won't be the end of it," <st1:City w:st="on"><st1:place
w:st="on">Garfield</st1:place></st1:City> said, given that negotiations over
the fate of the dams are continuing with Indian tribes, fishermen and
environmentalists. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><st1:PersonName w:st="on"><em><i><font size=2 color=gray
face="Times New Roman"><span style='font-size:10.0pt;color:gray'>Byron
Leydecker</span></font></i></em></st1:PersonName><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=2 color=gray face="Times New Roman"><span
style='font-size:10.0pt;color:gray'>Friends of <st1:place w:st="on">Trinity
River</st1:place>, Chair</span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=2 color=gray face="Times New Roman"><span
style='font-size:10.0pt;color:gray'>California Trout,Inc., Advisor</span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><st1:address tabIndex="0"
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on"><st1:Street w:st="on"><em><i><font size=2 color=gray
face="Times New Roman"><span style='font-size:10.0pt;color:gray'>PO Box</span></font></i></em></st1:Street><em><i><font
size=2 color=gray face="Times New Roman"><span style='font-size:10.0pt;
color:gray'> 2327</span></font></i></em></st1:address><o:p></o:p></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><em><i><font
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color:gray'>Mill Valley</span></font></i></em></st1:City><em><i><font size=2
color=gray face="Times New Roman"><span style='font-size:10.0pt;color:gray'>, <st1:State
w:st="on">CA</st1:State> <st1:PostalCode w:st="on">94942-2327</st1:PostalCode></span></font></i></em></st1:place><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=2 color=gray face="Times New Roman"><span
style='font-size:10.0pt;color:gray'>415 383 4810 ph</span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=2 color=gray face="Times New Roman"><span
style='font-size:10.0pt;color:gray'>415 383 9562 fx</span></font></i></em><o:p></o:p></p>
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