ATTACHMENT A QUESTION 3: PROJECT DESCRIPTION PROJECT MAP

Transcription

1 ATTACHMENT A QUESTION 3: PROJECT DESCRIPTION PROJECT MAP

2 OSWEGO RIVER PROJECT DESCRIPTIONS The Oswego River Projects consist of six developments (Oswego Falls East, Oswego Falls West, Granby, Fulton, Minetto, and Varick) comprising three FERC-licensed hydroelectric projects along the Oswego River in Oswego County, New York. The projects are all located at locks and dams owned by the New York State Canal Corporation (NYSCC), operator of the State Barge Canal System. The Oswego River is formed at the confluence of the Seneca and Oneida rivers and flows north approximately 23 river miles to Lake Ontario. The Oswego River first flows through the Lock 1 dam impoundment at the Phoenix Project (FERC No. 4113), which is owned by Algonquin Power. The water flow then enters the Oswego Falls impoundment formed by the Upper Fulton Dam (Lock 2, River Mile 12.6). The Oswego Falls East and Oswego Falls West developments (FERC No. 5984) are located immediately below this impoundment. Once past the Oswego Falls Project, water flow enters the Fulton-Granby impoundment. The Granby Project (FERC No. 2837) and the Fulton Development of the Oswego River Project (FERC No. 2474) are located along opposite sides of Lower Fulton Dam (Lock 3), approximately one mile below Upper Fulton Dam. The Oswego River next enters the impoundment formed by the Minetto Development of the Oswego River Project (FERC No. 2474). The Minetto Development is located near Lock 5, approximately 6.4 miles downstream of Fulton and Granby. Next, water flow enters the impoundment at Lock 6 and the High Dam Project (FERC No ), which is owned by the city of Oswego, with Erie providing operation and maintenance support for the plant. Finally, once past the High Dam Project, water flow enters the Varick Development of the Oswego River Project (FERC No. 2474). The Varick Development is located near Lock 7, 1.4 miles above the mouth of Lake Ontario. A. Oswego Falls Project (FERC No. 5984) The dam and forebay gate structures at the Upper Fulton Dam are owned by NYSCC. The dam has a weir section and a spillway section for overflow, and the crest is equipped with a 1.5-foothigh pneumatic flashboard system installed and maintained by Erie. To the west of the weir section, there are six Tainter gates, which are owned by NYSCC. The Oswego Falls West Development is located on the left bank (looking downstream), and the Oswego Falls East Development is located on the opposite (right) bank. In accordance with the 2004 Offer of Settlement and 2006 FERC order amending the license for the Oswego Falls Project, a seasonal (June 15 to September 15) upstream eel conveyance system was installed at the Oswego Falls Project. The existing licensed operational mode for the Oswego Falls Project is modified run-of-river operation, which allows for a 0.5-foot impoundment fluctuation. The Project generates with inflows between 652 cfs and 7,158 cfs, and flows outside of this range are spilled at the dam. The licensed bypass flow for the Oswego Falls Project is 236 cfs or inflow, whichever is less. Of this total bypass flow, 70 cfs is released at the East Development, and 166 is released through the No. 1 Tainter gate.

3 Oswego Falls East Development The eastern forebay that leads to the intake for the Oswego Falls East Development is located near Lock 2. Licensed project works at the Oswego Falls East Development include the forebay, which is equipped with a trash sluice and electric-operated gate; intake structure with 1-inch trashracks; a concrete and brick powerhouse; three vertical Francis-type turbine-generator units; a tailrace channel separated from the river by a concrete gravity section and earth embankment at the lock by a masonry and concrete retaining wall; and 2.4-kV primary transmission lines and appurtenant facilities and the 2.4-kV station tie to the West Development. The three turbinegenerator units each have an installed capacity of 1.5 MW and have a combined hydraulic capacity of 4,230 cfs. Minimum flows at the Oswego Falls East Development are provided through the existing trash sluice gate. Oswego Falls West Development Licensed project works at the Oswego Falls West Development include NYSCC s forebay gate structure between the Tainter gates and western shore of the river that conveys water to the forebay of the powerhouse and currently acts as the 1-inch trashrack structure; forebay; intake headgates and ice and trash sluices; a concrete and brick powerhouse; a tailrace channel separated from the river by a concrete gravity section and from the river bank by a concrete retaining wall; and the 2.4-kV primary transmission lines and appurtenant facilities. As approved in FERC s September 7, 2006 order amending the license for the Oswego Falls Project, Erie recently performed a maintenance upgrade to replace Unit 3 at the Oswego Falls West Development. The Oswego Falls West Development now includes four quadruplex-type turbinegenerator units (Units 1, 2, 4, and 5) and two vertical propeller turbine units (Units 6 and 7). Units 1 and 2 are inoperable, and Units 4 and 5 have an installed capacity of 0.93 MW each and have a combined hydraulic capacity of 1,860 cfs. Units 6 and 7 each have an installed generating capacity of 0.50 MW and have a combined hydraulic capacity of 832 cfs. The minimum flow at the Oswego Falls West Development is provided through Tainter gate 1, which is adjacent to the pneumatic flashboard section of the dam.

4 Figure 1. Downstream view of the Oswego Falls East (right) and Oswego Falls West (left) developments at Upper Fulton Dam/Lock 2. Oswego River Project (FERC No. 2474) The Oswego River Project is located on the Oswego River and consists of three developments: Fulton located at river mile (RM) 11.6, Minetto located at RM 5.1, and Varick located at RM 1.4. The three developments use the locks and dams owned by the New York State Canal Corporation (NYSCC). Fulton Development The Lower Fulton dam is a 509-foot-long and 15-foot-high concrete buttress dam topped with 6- inch flashboards. The Fulton Development is located on the right bank (looking downstream) adjacent to Lock 3, and the Granby Development is located at the left end of the dam. The Fulton-Granby impoundment has a surface area of 33 acres with a normal pool elevation of ft msl. The bypass reach formed by the Fulton Development is 1,850 ft long. Licensed project works at the Fulton Development include a concrete intake structure equipped with three steel gates; a 10-foot-long and 40-foot-wide forebay; 1-inch trashracks; concrete and brick powerhouse with two turbine-generator units; a switchgear building; and appurtenant facilities. The Fulton powerhouse contains two vertical fixed-propeller turbine-generator units

5 with generating capacities of 0.8 MW and 0.45 MW and a combined hydraulic capacity of 1,165 cfs. In accordance with the 2004 Offer of Settlement and provisions of the 2006 FERC order amending the license for the Oswego River Project, a seasonal upstream eel conveyance system was installed at the Fulton Development. Inflow to the reservoir is essentially the same as discharge from the Oswego Falls Project, which has a combined hydraulic capacity of 6,922 cfs. The Fulton Development operates in conjunction with the Granby Project. As described in the 2004 Offer of Settlement, the Fulton Development operates in a modified run-of-river mode, which allows for a 0.5-foot impoundment fluctuation. Because Granby shares the dam with Fulton, by default Granby operates in this same modified run-of-river mode. The licensed baseflow requirement for the Fulton Development is 300 cfs or inflow, whichever is less, and 800 cfs or inflow during walleye spawning season. The provision of this baseflow, in combination with the 75-cfs minimum flow released from the sluice gate adjacent to the Fulton powerhouse, allows the upper bypass reach formed by the Fulton-Granby developments to be backwatered by discharge from the Fulton turbines.. Figure 2. Upstream view of the Fulton (left) and Granby (right) developments at Lower Fulton Dam/Lock 3.

6 Minetto Development The Minetto dam is a 500-foot-long, 22.5-foot-high concrete gravity dam topped with 10-inch flashboards. The Minetto impoundment has a surface area of 350 acres with a normal pool elevation of ft msl. Licensed project works at the Minetto Development include a concrete intake structure equipped with nine steel gates; a 100-foot-long, 200-foot-wide forebay; trashracks; a concrete and brick powerhouse containing five vertical Francis turbine-generator units with a combined installed capacity of 8.0 MW and combined hydraulic capacity of 7,500 cfs; and appurtenant facilities. In accordance with the 2004 Offer of Settlement, a seasonal upstream eel conveyance system was installed at the Minetto Development. The existing licensed operational mode for the Minetto Development is modified run-of-river operation, which allows for a 0.5-foot impoundment fluctuation. There are no licensed bypass or base flow requirements for the Minetto Development, but the license does include a requirement for a 25-cfs downstream fish passage flow, which is released through an unused bay within the powerhouse. Figure 3. The Minetto Development at Minetto Dam/Lock 5.

7 Varick Development The Varick dam is the last dam on the Oswego River before the river s confluence with Lake Ontario. The Varick Development is located within the city of Oswego, so the lands around the project are relatively heavily developed. The 730-foot-long and 13-foot-high masonry gravity dam contains curved, straight, and gated sections and is topped with a series of stepped flashboards ranging in height from 10 inches to 36 inches. The Varick impoundment has a surface area of 32 acres at normal pool elevation ft (msl), and the bypass reach is approximately 1,940 ft long. Licensed project works include an intake structure with 24 steel gates; a 950-foot-long, 150-footwide forebay; trashrack structure; ice sluice; concrete and brick powerhouse containing four generating units; and appurtenant facilities. The turbine-generator units at Varick are fixed-blade propeller turbines and have a combined installed capacity of 8.8 MW and a combined hydraulic capacity of 5,600 cfs. In accordance with the 2004 Offer of Settlement, a seasonal upstream eel conveyance system was installed at the Varick Development and began operating for its first season on May 30, The existing licensed operational mode for the Varick Development is modified run-of-river operation, which allows for an impoundment fluctuation of 1 foot from the permanent crest of the dam or top of flashboards, when in place. Licensed flow requirements include a 200 cfs downstream fish flow released adjacent to the trashracks and an additional bypass flow that varies by season, ranging from 200 cfs to 800 cfs, through an existing sluice gate adjacent to the NYSCC head gate. As required by License Article 406, Erie installed a low-level diversion structure along the western side of the Varick bypass reach, near the tailrace of the powerhouse, which allows the majority of the upper bypass reach flow to be diverted to the lower bypass reach during low flow conditions. Figure 4. The Varick Developments at Varick Dam/Lock 7.

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9 ATTACHMENT B QUESTION 6: MARCH 15, 1996 ORDER ISSUING NEW LICENSE OCTOBER 2, 1998 ORDER AMENDING LICENSE MAY 21, 1999 ORDER AMENDING LICENSE FEBRUARY 19, 2004 SETTLEMENT AGREEMENT AUGUST 23, 2006 WATER QUALITY CERTIFICATION SEPTEMBER 7, 2006 ORDER AMENDING LICENSE AND ACCELERATING EEL PASSAGE OCTOBER 6, 2009 ORDER AMMENDING LICENSE

10 1 FERC - 75 FERC, 74 FERC 62,138, Niagara Mohawk Power Company, Project No NY, Federal Energy Regulatory Commission, (Mar. 15, 1996) Click to open document in a browser Niagara Mohawk Power Company, Project No NY [64,446] [ 62,138] Niagara Mohawk Power Company, Project No NY Order Issuing License (Major Project) (Issued March 15, 1996) Fred E. Springer, Director, Office of Hydropower Licensing. Introduction In 1982, the Niagara Mohawk Power Company (NiMo) filed an application under Part I of the Federal Power Act (FPA) for an original license to upgrade, operate, and maintain the existing 6,360 kilowatts (kw) Oswego Falls Hydroelectric Project No , located on the Oswego River in the city of Fulton, Oswego County, New York at river mile (RM) The project is located at the New York State Thruway Authority s (NYSTA) Canal Corporation Lock and Dam No NiMo proposes to alter operation of the project to run-of-river mode from peaking operations and increase the project s capacity to 8,900 kw. NiMo would continue to use the facility to provide power to its system and would sell all project energy to its customers. Background The application that is considered here was filed on January 28, 1988, together with additional information submitted on March 5, 1990, and August 9, 1993, respectively. The city of Oswego, New York, filed a competing application (Project No ) on June 7, 1990, but withdrew it on September 27, This order does not consider two previous license applications filed by NiMo that included other existing developments on the Oswego River. Public notice of this application has been published. Three entities filed timely motions to intervene as a party to these proceedings: the New York State Department of Environmental Conservation (NYSDEC), the City of Oswego, New York (Oswego), and the U.S. Department of the Interior (DOI). The American Whitewater Affiliation, American Rivers Inc., New York Rivers United, and Trout Unlimited (AWA, et al.) filed a joint motion for late intervention and the City of Fulton also filed a motion for late intervention. Commission staff accepted these motions. Commission staff prepared and issued a Draft Environmental Assessment (EA) of the proposed project for public comment on September 29, In response, the Commission received comment letters from the United States Department of the Interior, Niagara Mohawk Power Corporation, and New York State Department of Environmental Conservation (NYSDEC). The Commission staff issued a Final EA on March 15, 1996, which is attached to and made a part of this license. Comments received from intervenors and other interested parties have been fully considered in [64,447] determining whether, or under that conditions, to issue this license. The Commission s staff also prepared a Safety and Design Assessment (S&DA), which is available in the Commission s public file associated with this project. Project Description 1

11 The Oswego Falls Project is an existing 6,360 kw hydroelectric facility operating in peaking/pulsing mode with a hydraulic capacity of 5,600 cubic feet per second (cfs). Project facilities include two developments: the Oswego Falls East Development and the Oswego Falls West Development, located at Oswego Canal Lock No The two developments share a dam, spillways, and impoundment. A more detailed project description is contained in the Ordering Paragraph (B)(2). NiMo proposes to upgrade the capacity of each of the three turbine-generator units at the East Development from 1,500 to 2,347 kw and to replace two inoperable and one partially operating turbine-generator units at the West Development with three duplex runner turbines, with a brand name of "Seagull". These modifications would increase project capacity to 11,846 kw. Project Ownership and Control The New York State Thruway Authority (NYSTA) Canal Corporation owns and operates the Oswego Canal Lock No. 2 Dam and one forebay gate structure. NiMo currently has a 30-day revocable permit with no fee to use these facilities. NiMo owns all other hydroelectric facilities. In order to enable the Commission to carry out its regulatory responsibilities with respect to a licensed project, Standard License Article 5 requires a licensee, within five years of license issuance, to acquire and retain title in fee to, or the right to use in perpetuity, project property sufficient to accomplish all project purposes. Such rights must accommodate the licensee s obligations for the current license term as well as the obligations of future licensees, and provide sufficient rights in property to enable the Commission, through the licensee, to carry out its regulatory responsibilities with respect to the project. The Commission s authority over projects is exercised through the license instrument, and the license instrument gives the Commission authority only over the licensee. Since NYSTA is not the licensee or co-licensee of the Oswego Falls Project, the license instrument itself does not bind NYSTA, and the Commission cannot exercise authority over NYSTA pursuant to the license instrument. The licensee must retain sufficient control over the operation of the project to ensure that it can perform any act required by an order of the Commission pursuant to the license without prior approval of NYSTA. Therefore, NiMo s permit must be modified to provide that the project will be operated in compliance with the license and with applicable regulations and orders of the Commission. The permit must be modified to include a provision stating that: Notwithstanding any provision contained herein, Niagara Mohawk Power Company has the right to perform any and all acts required by an order of the Federal Energy Regulatory Commission or its successor without the prior approval of NYSTA. Because the project to be licensed is an existing, operating facility, NiMo must act expeditiously to modify its permit with NYSTA, notwithstanding the provision of Standard Article 5 that gives NiMo five years to obtain necessary rights to fulfill project purposes. Therefore, Ordering Paragraph (E) of this license requires NiMo to file, for Commission approval, a modified permit as prescribed above within 120 days of the issuance date of this order. Applicant s Plans and Capabilities Section 10(a)(2)(C) of the FPA, as amended by the Electric Consumers Protection Act of 1986 (ECPA), requires the Commission in issuing licenses to consider in writing the applicant s conservation efforts. The staff s findings on section 10(a)(2)(C) are summarized below. I concur. NiMo developed an extensive demand-side management (DSM) program that complies with the guidelines established by the New York State Public Service Commission. The program is periodically evaluated and updated to ensure attainment of customer and system needs. The program has established a thirteenpoint plan for implementation of DSM which includes such measures as energy management information service, energy audit programs, residential energy saving incentive programs, and commercial/industrial saving incentive programs. NiMo s plans for encouraging and assisting its customers in the conservation of electricity are adequate. [64,448] Water Quality Certification 2

12 Section 401(a)(1) of the Clean Water Act (CWA), 33 U.S.C (a)(1), requires an applicant for a federal license or permit for any activity that may result in a discharge into navigable waters of the United States to provide to the licensing or permitting agency a certification from the state in which the discharge originates that such discharge will comply with certain sections of the CWA. If a state fails to act on a request for certification within 1 year, the certification requirement is waived. NiMo requested a water quality certificate (WQC) on February 16, In April 1987, under Order 464, the Commission determined that WQCs had been waived for several hydropower projects since the certifying agency (NYSDEC) had not granted or denied the applicant s certification request within 1 year after receiving the application. Order 464 included the Oswego Falls Project. Coastal Zone Management Program Section 307(c)(3)(A) of the Coastal Zone Management Act (CZMA), 16 U.S.C. 1456(3)(A), states that the Commission cannot issue a license for a project within or affecting the state s coastal zone, unless the state CZMA agency concurs with the license applicant s certification of consistency with the state s CZMA program (which has been approved by the Secretary of Commerce). The Oswego Falls Project is not located within New York s designated coastal zone management area (Coastal Area Maps, 1981), and would not affect the natural resources of the coastal zone. Section 18 Fishway Prescriptions Pursuant to section 18 of the FPA, the DOI prescribes three conditions regarding fishways at the project. First, DOI requires the licensee to install bar racks at the project intakes. The design shall include a fish bypass structure located near the downstream end of the bar rack to accommodate sufficient flows for fish passage to the downstream area. Passage flow recommendations are 69 cfs for the West Development and 167 cfs for the East Development; these flows are based on 5 percent and 3 percent of hydraulic capacities, respectively. The licensee shall consult with NYSDEC and the U.S. Fish and Wildlife Service (FWS) on the final design of the project intake, bar racks, and fish bypass structure. Second, DOI requires the licensee to permit personnel from NYSDEC and FWS to inspect all of the facilities and project records pertaining to construction, operation, and maintenance thereof to determine compliance with the aforementioned terms and conditions and their effectiveness in protecting fish populations, provided that such inspections do not pose a significant threat to personnel or property. Third, DOI reserves its authority to prescribe construction, operation, and maintenance of upstream passage facilities during the term of the project license. The staff found that some of the terms of these three conditions are not properly within the scope of section DOI s first condition provides that the applicant consult with the state (and FWS) on the final design of the downstream fishway. DOI s second condition requires that the licensee provide the state (and FWS) access to the site and pertinent project records for the purpose of determining compliance with the fish prescription. Section 18 provides the authority to prescribe fishways to DOI, but it does not provide this authority to state agencies. The staff found that the portions of DOI s first two conditions that relate to state consultation, coordination, and access are not appropriate as section 18 prescriptions. I concur. In addition, DOI s first condition, regarding the design of the project intake and bar racks, in itself would not be considered a fishway prescription if the sole purpose of the racks is to protect fish from project-related injury or mortality resulting from turbine passage. Since NiMo would use the bar rack structure to guide fish to the downstream fishway structure, I consider the structure to be part of the downstream fishway facilities. Although the portion of DOI s conditions requiring licensee s coordination with the state is not a component of a fishway prescription under section 18, such a requirement may be necessary and appropriate for the Commission and DOI to carry out their respective responsibilities. Accordingly, I concur with the staff that NiMo should consult with both FWS and NYSDEC on the final fishway design and allow inspection of fish passage facilities and records, and that these provisions be included in the development of the downstream fish passage plan. The DOI requested the Commission to reserve its authority to require construction, operation, and maintenance of upstream fishways as may be prescribed pursuant to section 18 of the FPA. Currently, upstream fish passage past the Oswego Falls Project is not a management objective for the Oswego River. Should management objectives change, there may be a need for future fish passage at the project. Therefore, the Commission authority to require 3

13 [64,449] fishways as may be prescribed by DOI is reserved by Article 405. Economic Analysis Under the Commission s approach to evaluating the economics of a project, a proposed project is economically beneficial so long as its projected cost is less than the current cost of alternative energy 4. To determine whether the proposed project is economically beneficial, the staff compared the cost of incremental energy (relative to no-action) from the proposal to the regional average cost of energy from natural gas, mills/kwh. Assuming a differential between the values of on-peak and off-peak energy equal to 10 percent of the average value, the costs of alternative on-peak and off-peak energy would be mills/kwh and mills/kwh, respectively. The staff applied this new analysis to the Oswego Falls Project. Based on current economic conditions, the project, if licensed as the applicant proposes, would produce about gigawatt hours (GWh) of incremental energy (relative to no-action) annually at a current year cost of about $1,224,000 (55.2 mills/ kwh) more than the currently available alternative. When licensed in accordance with the conditions adopted herein, the project would produce GWh of incremental energy (relative to no-action) annually at a current year cost of about $174,000 (26.3 mills/kwh) more than the currently available alternative. The staff s evaluation of the economics of the proposal shows that it appears to cost more than the currently available alternative. However, as explained in the Commission s recent orders in Mead Paper and Duke Power the economic analysis is perforce inexact, and project economics is moreover only one of the many public interest factors considered in determining whether or not, and under what conditions, to issue a license. Although the continued operation of the project would be more economical under current conditions than under the applicant s proposal or under the conditions adopted herein, the applicant is ultimately responsible and best able to determine whether continued operation of the existing project including the conditions adopted herein is a reasonable decision in these circumstances. The Commission concludes that it is in the public interest to issue the license, as conditioned herein, and leaves to the applicant the decision of whether or not to continue to operate the project as so conditioned. Recommendations of Federal and State Fish and Wildlife Agencies Section 10(j) of the FPA requires the Commission to include license conditions based on recommendations of federal and state fish and wildlife agencies submitted pursuant to the Fish and Wildlife Coordination Act for the protection of, mitigation of adverse impacts to, and enhancement of fish and wildlife resources. Conditions based on such fish and wildlife recommendations must be included in the license unless the Commission determines that the recommendations are inconsistent with the purposes and requirements of the FPA or other applicable law. Pursuant to section 10(j) of the FPA, both DOI and NYSDEC recommend that the project change to runof-river operation and minimize water level fluctuations by installing a pneumatic crest control devise. DOI also recommends that NiMo do the following: maintain the impoundment at an elevation at or near top of flashboards, and monitor instantaneous flow releases. NYSDEC recommends that NiMo develop a plan for a selective upstream fish passage structure for Atlantic salmon. Pursuant to section 10(j) of the FPA, and as a result of the staff consultation with the agencies regarding minimum flows, DOI determined that the prescribed West Development downstream fishway flow (69 cfs) is adequate to provide riffle habitat in the bypass reach (DOI, 1995b). NYSDEC also accepts the West Development passage flow as a minimum flow to the bypass reach so long as the flow is continuous (NYSDEC, 1995b). A requirement to continuously route the 69 cfs fish passage flows from the West Development through the bypass reach, with necessary structural improvements to ensure safe fish passage, is included as license Article 404. The applicant s proposal, as supplemented with the staff s recommended enhancements, satisfies the resource agencies recommendations. I accept these agency recommendations. The staff made preliminary determinations that certain DOI and NYSDEC recommendations were outside the scope of section 10(j). These recommendations included: (1) allowing the public free access to project waters and lands; and (2) providing additional recreational facilities. These recommendations are not 4

14 specifically fish and wildlife recommendations. The staff considered these recommendations under section 10(a) of the FPA and recommended adoption. I concur with the staff s findings and recommendations. [64,450] Comprehensive Plans Section 10(a)(2) of the FPA requires the Commission to consider the extent to which a project is consistent with federal or state comprehensive plans for improving, developing, or conserving of a waterway or waterways affected by the project. Under section 10(a)(2), federal and state agencies have filed a total of 17 plans that address various resources in New York, two of which we identified as applicable to this project. No conflicts were found. Section VII.C. of the EA lists the comprehensive plans relevant to this project. Comprehensive Development Sections 4(e) and 10(a)(1) of the FPA, 16 U.S.C. 797 (e) and 803(a)(1), require the Commission, in acting on applications for license, to give equal consideration to the power and development purposes and to the purposes of energy conservation, and protection, mitigation of damage to, and enhancement of fish and wildlife, the protection of recreational opportunities, and the preservation of other aspects of environmental quality. Any license issued shall be such as in the Commission s judgement, best adapted to a comprehensive plan for improving or developing a waterway or waterways for all beneficial public uses. The decision to license this project, and the terms and conditions included herein, reflect such consideration. The DEA analyzed the effects associated with the issuance of an original license for the Oswego Falls Project. The EA recommends a variety of measures to protect and enhance environmental resources, which I have adopted. In conclusion, the issuance of an original license for the Oswego Falls Project will not constitute a major federal action significantly affecting the quality of the human environment. 1. Recommended Alternative I have considered the proposed project, agency and intervenor recommendations, staff recommendations, and the no-action alternative. Based on the staff s independent review and evaluation of the proposed project and alternatives I have selected the applicant s proposal with staff s recommended enhancement measures as the preferred alternative. I support NiMo s proposed conversion to run-of-river operation, installation of a pneumatic crest control device, and upgrades to the three East Development turbines. The Commission requires modification of the applicant s proposed project by eliminating the three Seagull turbines in the West Development and not requiring minimum flows in the bypassed reach of the Oswego River. I am requiring NiMo to implement the following enhancement measures as part of this license: finish construction of the boat launch for the Lock Island Community Revitalization Plan; develop a tailwater fishing access to the lower Lock No. 2 Island below the Oswego Falls dam; provide for safe downstream fish passage by providing 69 cfs passage flow at the West Development and 167 cfs at the East Development; maintain the impoundment at an elevation at or near the top of the flashboards; monitor instantaneous flow releases; and develop a plan for selective upstream fish passage. The recommended project would generate an estimated 42,908 MWh of relatively low-cost electricity, currently worth about $1,388,967, with an annual net benefit (ANB) of -$81,151, from a clean, reliable, and renewable energy resource for NiMo s customers. 2. Developmental and Non-Developmental Uses of the Waterway In general, the Commission and resource agencies support NiMo s proposed run-of-river operation and installation of the pneumatic crest control device because, in combination, they result in significant environmental benefits and increased hydropower generation. The two major differences between the recommended alternative and the applicant s proposed project and resource agency recommendations are deletion of Seagull turbines and minimum flows to the bypass reach. These differences are discussed below. 5

15 a. Seagull Turbines Redevelopment of the West side powerhouse with Seagull turbines would increase the project s hydraulic capacity by 40 percent and, we assume, proportional increases in fish entrainment relative to existing conditions. Available data from the downstream Minetto development indicates that entrainment mortality could be as high as 38 percent for small centrachids, 20 percent for small walleye, and 14 percent for medium walleye. The resource agencies state that the cumulative impacts of hydroelectric project operations along the entire Oswego River on downstream migrant mortality are unacceptably high. I concur. Further, during the 10(j) meetings held in March 1995, the resource agencies did not support installation of Seagull turbines. The agencies also did not account for these turbines in the fish passage flows or the design of fish passage facilities that were agreed upon by all parties as a result of the 10(j) process. In addition, [64,451] the staff s economic analysis indicates that installing the Seagull turbines would result in a negative annual net benefit in excess of $1.07 million. The staff therefore recommends that the Seagull turbines not be installed so that downstream migrant entrainment-related mortality does not increase relative to current conditions. I concur. b. Bypass Reach Flows The staff agrees and I concur with the resource agencies that riffle habitat is almost non-existent on the Oswego River, and that provision of minimum flows within the bypass reach would restore some of the former riffle habitat in the river. Results of the modified Instream Flow Incremental Methodology (IFIM) analysis, however, indicate that there would be little benefit. The DOI and NYSDEC concur with the staff s recommendation of routing fish passage flows from the West Development (69 cfs) through the bypass reach in lieu of the 50 cfs minimum flow proposed by NiMo or a separate minimum flow requirement. License Term and Back Annual Charges The Oswego Falls Project is an operating unlicensed project. The Commission s policy is to establish 30- year terms for these projects that propose little or no redevelopment or new construction, 40-year terms for those projects that propose moderate redevelopment or new construction, and 50-year terms for those projects that propose extensive redevelopment or new construction. Because the proposed project involves moderate redevelopment or new construction, the license for the Oswego Falls Project will be for a term of 40 years. The Commission determined in May 1965 that the Oswego River is a navigable water, and therefore falls under the Commission s jurisdiction with respect to hydroelectric projects. The Oswego Falls Project should have been licensed at that time. NiMo purchased the project on April 24, Annual charges will be assessed from the effective date of this license. Moreover, in order to place the licensee in the same position as it would have been had the project been licensed when NiMo purchased the project in 1968, the licensee will be required, per Article 202, to pay an amount equivalent to the annual charges that would have been due for the period between May 1, 1968, the first day of the month following the date of purchase, and the date of the license issuance. Summary of Findings The final EA issued for this project includes background information, analysis of impacts, discussion of enhancement measures, support for related license articles, and the basis for a finding of no significant impact on the environment. Issuance of this license is not a major federal action significantly affecting the quality of the human environment. The design of this project is consistent with the engineering standards governing dam safety. The project will be safe if operated and maintained according to the terms and conditions of this license. Analysis of related issues is provided in the Safety and Design Assessment (S&DA). I conclude that issuing a license for the Oswego Falls Project, with the required enhancement measures and other special license conditions, will not conflict with any planned or authorized development and will be best adapted to comprehensive development of the waterway for beneficial public uses. 6

16 The Director orders: (A) This license is issued to Niagara Mohawk Power Company (Licensee) for a period of 40 years, effective the first day of the month in which this order is issued, to construct operate and maintain the Oswego Falls Hydroelectric Project. This license is subject to the terms and conditions of the FPA, which is incorporated by reference as part of this license, and subject to the regulations that the Commission issues under the provisions of the FPA. (B) The project consists of: (1) All lands, to the extent of the licensee s interest in those lands, enclosed by the project boundary shown by exhibit G of the application: FERC Exhibit Drawing No. Title G G1 Project Location Maps and Project Boundary Maps, Sheet No G2 Sheet No G3 Sheet No G4 Sheet No G5 Sheet No G6 Sheet No. 6 (2) Project works consist of two developments as follows: Oswego Falls East Development (a) a forebay equipped with a trash sluice with electric-operated gate; (b) an intake structure protected by bar racks; (c) a powerhouse with a concrete substructure and brick superstructure; (d) three vertical Francis-type turbine-generator units, each rated at 1,500 kw at 17.0 ft net head with a hydraulic capacity of 1,410 cfs; (e) a tailrace channel separated from the river by a concrete gravity section and earth embankment at the lock by a masonry [64,452] and concrete retaining wall; and (f) 2.4-kV primary transmission lines and appurtenant facilities associated with the East Development, and the 2.4-kV station tie to the West Development. Oswego Falls West Development (a) NYSTA s forebay gate structure which conveys water to the forebay of the West Development powerhouse and lies between the Taintor gates and the western shore of the river; (b) a 20-ft-deep forebay; (c) an intake structure protected by bar racks and equipped with ice and trash sluices; (d) a powerhouse with a concrete substructure and brick superstructure; (e) five existing horizontal quadruplex-type turbinegenerator units, three rated at 800 kw each at 17.0 ft of head two of which are inoperable and the third operating at one-half capacity (400 kw) with a hydraulic capacity of 250 cfs, and two rated at 730 kw at 17.0 ft of head each with a hydraulic capacity of 560 cfs; (f) a tailrace channel separated from the river by a concrete gravity section and from the river bank by a concrete retaining wall; and (g) the 2.4-kV primary transmission line and appurtenant facilities associated with the West Development. 7

17 The recommended project would include: (a) an upgrade of each of the three East Development turbines to be rated at 2,347 kw with a hydraulic capacity of 1,860 cfs; (b) replacement of wooden flashboards with a pneumatic crest control device; and (c) modification of the East powerhouse intake. The project works generally described above are more specifically shown and described in the FEA and in those portions of exhibits A and F listed below. Exhibit A - The following sections of exhibit A, filed January 1988: Section Title Page A.1 Physical Composition A.1-1 A.2 Surface Area and Elevations A.2-1 A.3 Turbines and Generators A.2-1 A.4 Transmission Lines A.3-1 A.5 Appurtenant Equipment A.4-4 A.6 United States Lands Within Project Boundaries A.6-1 Exhibit F - The following exhibit F drawings, filed January 1988: FERC Section Drawing No. Title F Oswego Falls East Development F Oswego Falls West Development Exhibit G - The following exhibit G drawings, filed January 1988: FERC Exhibit Drawing No. Description G G1 Project Location Maps and Project Boundary Maps, sheet G2 sheet G3 sheet G4 sheet G5 sheet 5 8

18 (3) All of the structures, fixtures, equipment, or facilities used to operate or maintain the project and located within the project boundary, all portable property that may be employed in connection with the project and located within or outside the project boundary, and all other riparian or other rights that are necessary or appropriate in the operation or maintenance of the project. (C) The exhibits A, F, and G described above are approved and made part of the license. (D) This license is subject to the articles set forth in Form L-3 (October, 1975), entitled, "Terms and Conditions of License for Constructed Major Project Affecting Navigable Waters of the United States", and the following additional articles. (E) The licensee,within 120 days from the date of issuance of this license, shall file, for Commission approval, a revised permit from New York State Thruway Commission that would enable the licensee to use in perpetuity the Oswego Canal Lock No. 2 dam and forebay gate structure, and include a provision stating that: Notwithstanding any provision contained herein, Niagara Mohawk Power Company has the right to perform any and all acts required by an order of the Federal Energy Regulatory Commission or its successors without the prior approval of NYSTA. Article 201. The licensee shall pay the United States the following annual charges: For the purposes of reimbursing the United States for the costs of administering Part I of the Federal Power Act, a reasonable amount as determined in accordance with the provisions of the Commission s regulations in effect from time to time. The authorized existing installed capacity for that purpose is 6,360 kilowatts. This annual charge shall be effective as of the first day of the month in which this license is issued. In addition to the above charge a reasonable amount as determined in accordance with the provisions of the Commission s regulations in effect from time to time. The authorized proposed additional capacity for that purpose is 2,540 kilowatts. This annual charge shall be effective as of the date of commencement of construction of the new capacity. Under the regulations currently in [64,453] effect, project with authorized installed capacity of less than or equal to 1,500 kilowatts are not assessed an annual administrative charge. Article 202. From May 1, 1968, to February 29, 1996, for the purposes of reimbursing the United States for the cost of Administration of Part I of the FPA, a reasonable amount as determined in accordance with the provisions of the Commission s regulations in effect from time to time. The authorized installed capacity for that purpose is 6,360 kilowatts. Article 203. Within 90 days from the date of issuance of this license, the licensee shall file with the Commission, in accordance with the provisions of 18 C.F.R. Part 11 of the Commission s regulations, a statement showing the gross amount of power generation for the project in kilowatt-hours for each calendar year commencing May 1, 1968, and ending the last day of the month preceding the month in which this order is issued. Article 204. Pursuant to section 10(d) of the FPA, after the first 20 years of operation of the project under license, a specified reasonable rate of return upon the net investment in the project shall be used for determining surplus earnings of the project for the establishment and maintenance of amortization reserves. The licensee shall set aside in a project amortization reserve account at the end of each fiscal year one half of the project surplus earnings, if any, accumulated after the first 20 years of operation under the license, in excess of the specified rate of return per annum on the net investment. To the extent that there is a deficiency of project earnings below the specified rate of return per annum for any fiscal year after the first 20 years of operation under the license, the licensee shall deduct the amount of that deficiency from the amount of any surplus earnings subsequently accumulated, until absorbed. The licensee shall set aside one-half of the remaining surplus earnings, if any, cumulatively computed, in the project amortization reserve account. The licensee shall maintain the amounts established in the project amortization reserve account until further order of the Commission. 9

19 The specified reasonable rate of return used in computing amortization reserves shall be calculated annually based on current capital ratios developed from an average of 13 monthly balances of amounts properly includable in the licensee s long-term debt and proprietary capital accounts as listed in the Commission s Uniform System of Accounts. The cost rate for such ratios shall be the weighted average cost of long-term debt and preferred stock for the year, and the cost of common equity shall be the interest rate on 10-year government bonds (reported as the Treasury Department s 10 year constant maturity series) computed on the monthly average for the year in question plus four percentage points (400 basis points). Article 205. Within 45 days of the date of issuance of the license, the licensee shall file an original set and two duplicate sets of aperture cards of the approved drawings. The set of originals must be reproduced on silver or gelatin 35mm microfilm. The duplicate sets are copies of the originals made on diazo-type microfilm. All microfilm must be mounted on type D (31/4" x 73/8") aperture cards. Prior to microfilming, the FERC Drawing Number (5984-F1 and 5984-F2; 5984-G1 through 5984-G5) shall be shown in the margin below the title block of the approved drawing. After mounting, the FERC Drawing Number must be typed on the upper right corner of each aperture card. Additionally, the Project Number, FERC exhibit (e.g., F-1, G-1, etc.), Drawing title, and date of this license must be typed on the upper left corner of each aperture card. The original and one duplicate set of aperture cards must be filed with the Secretary of the Commission, ATTN: DPCA/ERB. The remaining duplicate set of aperture cards shall be filed with the Commission s New York Regional Office. Article 301. The licensee shall commence construction of the proposed project works within two years from the issuance date of the license and shall complete construction of the project within four years from the issuance date of the license. Article 302. Before starting construction, the licensee shall review and approve the design of contractordesigned cofferdams and deep excavations and shall ensure that construction of cofferdams and deep excavations is consistent with the approved design. At least 30 days before starting construction of the cofferdam, the licensee shall submit one copy to the Commission s Regional Director and two copies to the Commission (one of these shall be a courtesy copy to the Commission s Director, Division of Dam Safety and Inspections), of the approved cofferdam construction drawings and specifications and the letters of approval. Article 303. The licensee shall, at least 60 days prior to the start of construction, submit one copy to the Commission s Regional Director and two copies to the Commission (one of these shall be a courtesy copy to the Director, Division of Dam Safety and Inspections), of the final contract drawings and specifications for pertinent features of the project, such as water retention structures, powerhouse, and [64,454] water conveyance structures. The Commission may require changes in the plans and specifications to assure a safe and adequate project. If the licensee plans substantial changes to location, size, type, or purpose of the water-retention structures, powerhouse, or water conveyance structures, the plans and specifications must be accompanied by revised exhibit F and G drawings, as necessary. Article 304. Within 90 days of completion of construction, the licensee shall file for Commission approval revised exhibits A, F, and G which describe and show the project facilities "as-built". Article 305. Within 90 days after the date the license is issued, the licensee shall hire an independent consultant, approved by the Commission, as required in Part 12, subpart D of the regulations. The consultant shall inspect the dam according to the requirements of Part 12, subpart D. Within one year after the date of the Commission s letter approving the consultant, the licensee shall file three copies of the report with the Commission s Regional Director. Upon Commission approval, the licensee shall implement the recommendations of this report, including any changes required by the Commission. Article 401. The licensee shall operate the project in a run-of-river mode for protection of fish, wildlife, and wetlands resources upstream and downstream of the Oswego Falls Dam on the Oswego River. Run-of- 10

20 river operation is required within 60 days from the Commission s approval of the streamflow and water level monitoring plan required by Article 402. The licensee shall at all times act to minimize the fluctuation of the reservoir surface elevation by maintaining a discharge from the project so that, at any point in time, flows, as measured immediately downstream from the project tailrace, approximate the sum of inflows to the project reservoir. Run-of-river operation may be temporarily modified if required by operating emergencies beyond the control of the licensee, and for short periods upon mutual agreement between the licensee and New York State Department of Environmental Conservation. If the flow is so modified, the licensee shall notify the Commission as soon as possible, but no later than 10 days after each such incident. Article 402. Within 180 days from the date of issuance of this license, the licensee shall develop, after consultation with the Department of Interior (DOI) and the New York State Department of Environmental Conservation (NYSDEC), a plan, for Commission approval, to monitor the run-of-river operating mode required by Article 401. The plan shall include provisions for maintaining the surface of the project impoundment at an elevation at or near the top of the flashboards or the pneumatic crest control device, and making these flow records available to DOI and NYSDEC. The licensee shall include with the plan documentation of consultation, copies of comments and recommendations on the completed plan after it has been prepared and provided to the agencies, and specific description of how the agencies comments are accommodated by the plan. The licensee shall allow a minimum of 30 days for the agencies to comment and to make recommendations before filing the plan with the Commission. If the licensee does not adopt a recommendation, the filing shall include the licensee s reasons, based on project-specific information. The Commission reserves the right to require changes to the plan. Upon Commission approval, the licensee shall implement the plan, including any changes required by the Commission. Article 403. Within one year after the date of issuance of this license, the licensee shall file with the Commission, for approval, a plan for eliminating seasonal water level fluctuations associated with the collapse of flashboards. This seasonal water level fluctuation adversely affects fish and wildlife resources and the sensitive Ox Creek wetlands. The licensee shall prepare the aforementioned plan after consultation with the U.S. Department of Interior and the New York State Department of Environmental Conservation. The licensee shall include with the plan documentation of consultation, copies of comments and recommendations on the completed plan after it has been prepared and provided to the agencies, and specific description of how the agencies comments are accommodated by the plan. The licensee shall allow a minimum of 30 days for the agencies to comment and to make recommendations before filing the plan with the Commission. If the licensee does not adopt a recommendation, the filing shall include the licensee s reasons, based on project-specific information. The Commission reserves the right to require changes to the plan. Upon Commission approval, the licensee shall implement the plan, including any changes required by the Commission. Article 404. Within six months after the date of issuance of this license, the licensee shall file with the Commission, for approval, a plan for installing, operating, and maintaining angled bar racks at the East and West developments intakes and downstream fish bypass structures in accordance with the U.S. Department of Interior s (DOI) section 18 prescription. The plan shall include, at a minimum, the following: (a) detailed design specifications and drawings of the angled bar racks and fishways that meet the recommendations prescribed by [64,455] DOI; (b) provisions for providing a total downstream bypass flow for the east powerhouse equal to 3 percent of the plant s maximum hydraulic capacity (167 cfs); (c) provisions for providing a total continuous downstream bypass flow for the west powerhouse equal to 5 percent of the plant s maximum hydraulic capacity (69 cfs); (d) detailed design specifications and drawings of plunge pools at the exit of the fishway sluices; (e) a description of the methods and schedule for installing the angled bar racks and downstream fishway. The licensee shall prepare the aforementioned plan after consultation with the DOI and the New York State Department of Environmental Conservation. The licensee shall include with the plan documentation 11