Kilarc-Cow Creek Hydroelectric Project Decommissioning

FERC Project No. 606

Technical Meeting

May 16, 2007, 1-4 pm

Red Lion

Redding, CA

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Agenda

• Introductions/Review Agenda

• Overview of Project and Decommissioning Agreement

• Relicensing Studies

• BREAK

• Regulatory Permits

• Next Steps

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Meeting Process

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PG&E is Committed to Decommissioning the Project

• Including:

– Complying with the Project Agreement on Decommissioning

– Returning diverted flow to the streams and transferring PG&E water rights to a resource agency or other entity to protect, preserve and/or enhance aquatic resources

– Timely preparation of a Decommissioning Plan and Surrender Application

– Timely implementation of the Decommissioning Plan following FERC approval of the Surrender Application

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Overview of Project and Decommissioning Agreement

• Overview of Project

• Project Agreement

• Proposed Schedule for Decommissioning Process

• Surrender Application Content and Process

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Overview of Project

Primary Project Features

• Cow Creek Development 1.8 MW

– Located on South Cow Creek

– Several Small Diversions

– 2 Miles of Canal, Forebay, and Powerhouse

• Kilarc Development 3.2 MW

– Located on Old Cow Creek

– Several Small Diversions

– 3.5 Miles of Canal, Forebay, and Powerhouse

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Overview of Project

Kilarc-Cow Creek Hydroelectric Project

• Began Operating in 1904 and 1907

• Operated by PG&E

• Licensed by the Federal Energy Regulatory Commission (FERC)

• Current FERC License Issued Feb. 1, 1980

• License Expired March 27, 2007 (operating on an annual license)

• Project Relicensing Started 2001

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Overview of Project

• Project Relicensing Began in 2001

– An Application for New License was required to be filed by March 27, 2005

• Economic Issues

– Small 5 MW Project in two developments, old facilities with high maintenance for power generated

– Anticipated significant increase in instream flow requirements and construction of fish passage facilities

– Decommissioning within the “Project Agreement” framework was more economic than continuing to operate the project

– Less costly replacement power available

• Environmental Laws and Compliance Issues

– Threatened Species (Steelhead)

– Species of Concern (Fall- and Late Fall-Run Chinook Salmon, Yellow legged frogs)

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Overview of Project

• In Early 2004 PG&E Decided To:

– Interrupt relicensing the Project

– Develop a Project Agreement to implement decommissioning, if no other entity relicensed the Project

• Decision Based On:

– Project economics

– Anticipated new license conditions

– Environmental benefits of decommissioning

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Project Agreement

• Signed March 2005

• Agreement with State and Federal resource agencies and other stakeholders

– U. S. Fish and Wildlife Service

– California Department of Fish and Game

– National Park Service

– California State Water Resources Control Board

– NOAA Fisheries

– Friends of the River

– Trout Unlimited

– PG&E

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Project Agreement

• PG&E agreed not to seek a new license

• Identified “Subjects and Desired Conditions” that would be addressed if the Project was decommissioned

• Upon decommissioning, transfer of PG&E water rights to other entity or agency to protect, preserve, and/or enhance aquatic resources

• FERC has final approval authority over decommissioning

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Project Agreement

What Happened After the Agreement Was Signed

• PG&E filed Agreement and informed FERC of the decision not to relicense the Project (3/30/05)

• FERC “Public Notice” that the license was available (4/7/05)

• Several entities evaluated acquiring the license and Project, but ultimately did not file license application

• PG&E filed the required Surrender Schedule with FERC on 3/23/07

• Next, FERC is expected to order PG&E to develop a decommissioning plan and file a Surrender Application within 2 years

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Proposed Schedule for Decommissioning Process

• Filed Surrender Schedule with FERC– March 23, 2007

• Hold stakeholder meetings to identify issues and develop decommissioning plan– April 2007 through Oct 2007

• Conduct resource analysis in 2007 and 2008

• PG&E prepares Surrender Application- Jan 2008 – March 2009

• Surrender Application including Decommissioning Plan proposed to be filed with FERC by March 2009

• Upon approval of Decommissioning Plan by FERC, PG&E to implement plan

2009-20122007 2008

Schedule for Surrender of License Application

PG&E Filed Surrender Schedule

- Identify Issues - Conduct Resource Analysis - Develop Decommissioning Plan

- Prepare License Surrender Application - File with FERC

Decom-missioning of Project Facilities and Monitoring

FERC approves License Surrender

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Surrender Application Content and Process

• FERC Regulatory Requirements

– FERC Regulations Addressing Decommissioning 18 CFR part 6, and 18 CFR s. 16.25

– Surrender application

• Must be filed in the same form and manner as the application for license

• Must provide for disposition of any Project facility

• Must comply with approved schedule

• Must comply with the requirements of consultation

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Resource Study Areas

• Hydrology– Developed and verified estimated hydrology

– Estimate average monthly flow at each diversion

• Water Quality and Water Temperature– All water samples were within Basin Plan objectives except

4 coliform samples (2 background)

– Old Cow Creek Water Temperature below 20°C

– Water entering Project on South Cow routinely above 20°C during summer/fall

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Resource Study Areas (cont.)

• Sediment and Channel Stability– Channel banks stable

– Sediment moves through system

– Spawning gravel not reduced below diversions

• Aquatic Habitat– Passage Barriers

• 14 barriers on Old Cow Creek

• 9 barriers on South Cow Creek

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Resource Study Areas (cont.)

• Fish Population– Old Cow - Rainbow Trout, Sculpin, Brown Trout, Sacramento

Pikeminnow

– South Cow- Steelhead, Chinook salmon (Wagoner Canyon)

– Resident fish in canals and both forebays

• Wildlife Resources– No CRLF or VELB

– FYLF (South Cow)

– Northwestern Pond Turtle (Hooten Gulch)

– Osprey, Golden Eagle (Kilarc Forebay)

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Resource Study Areas (cont.)

• Historic, Archaeological, Cultural, Recreational, Land Management & Aesthetics– Kilarc and Cow Powerhouse eligible

– No cultural properties identified

• Recreation– Limited opportunities

– Kilarc Forebay - picnicing and fishing

– 84% from Shasta County

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BREAK

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Regulatory Permits

Anticipated Permits

• FERC Surrender Application

• Army Corps of Engineer 404

• CDFG 1603 (Stream Bed Alteration)

• Stormwater runoff permit (depending on size of deconstruction area)

• County grading permits (depending on construction of temporary roads)

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Next Steps

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Project Area

Figure 1. 2003 water quality and continous temperature monitoring stations, Kilarc-Cow Creek Project.

Buckhorn Lake

Mountai

a

Kilarc P.H . Forebay

S. Canyon Cr.

N. Canyon Cr.

a

S H A S TA C O U N TY

W H ITM O R E

Forebay

Cow CreekP.H.

So. Cow CreekMain Canal

Mill Cr. So.CowCreek Canal

N

Water quality and temperaturemonitoring station

Temperature monitoring station

KF1

OC4

OC3

NC1

NC2

OC2

CC2CC1

SC3SC1

MC1

MC2

CCF1

SC4

SC5AD1

OC1

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Project Schematic