For More Information Contact:
Lance Robertson, 984-4716
Eugene Water & Electric Board

Oct. 21, 2008

Agreement sets common course of action for relicensing of Carmen-Smith Hydroelectric Project

The Eugene Water & Electric Board on Tuesday (Oct. 21) signed an agreement with 16 federal and state natural resource agencies, Indian Tribes, environmental groups and other parties outlining the environmental, recreational and other improvements EWEB will undertake for relicensing of its Carmen-Smith Hydroelectric Project on the upper McKenzie River.

Among other things, the agreement calls for EWEB to construct an upstream fish ladder and a downstream fish passage system at Trail Bridge Dam, increase year-round stream flows in portions of the McKenzie River and the Smith and Carmen bypass reaches above Trail Bridge Reservoir, greatly improve fisheries spawning and rearing habitat throughout the project area, rebuild and improve the three campgrounds in the area, construct new day-use sites at all three reservoirs, and protect important cultural and historical resources.

In all, EWEB has agreed to make an estimated $135 million in enhancements and mitigation measures related to the hydroelectric project as part of the support for a new license from the Federal Energy Regulatory Commission.

The agreement approved Tuesday and signed by the 17 parties (including EWEB) will be forwarded to FERC in support of EWEB’s application for a new 50-year operating license. FERC is expected to issue a new license within a year to 18 months.

The agreement is the culmination of nearly two years of discussions among the 17 parties. Although EWEB’s existing license expires in November of this year, FERC is expected to issue annual licenses until FERC issues the new license.

“This agreement is extremely significant in our effort to obtain a new license for Carmen-Smith, because it sets a common course of action for what is best for the utility, fish, wildlife, cultural resources and recreational improvements,” said EWEB General Manager Randy Berggren. “Carmen-Smith has been an important source of low-cost electricity for nearly 50 years and is one of the most valuable assets owned by the citizens of Eugene. Its continued operation is vital for Eugene’s energy future.”

Carmen-Smith is located 71 miles east of Eugene on the upper McKenzie and Smith rivers. It consists of three dams and reservoirs, two powerhouses, a salmon spawning channel, campgrounds and other amenities. These rivers not only provide power, but also are an important source of aesthetic, cultural and recreational values for local communities and beyond. This agreement attempts to balance these interests.

"As with any good compromise, nobody got exactly what they wanted, but when this settlement is implemented the McKenzie River and its wild salmon will be better off and EWEB's ratepayers will get a fair deal," said Doug Heiken of Oregon Wild, one of the parties to the agreement.

“This agreement will result in safe upstream and downstream fish passage for Chinook salmon, listed as threatened under the Endangered Species Act, into historical habitat above Trail Bridge Dam,” added Bob Lohn, Northwest Regional Administrator of NOAA’s National Marine Fisheries Service. “NOAA Fisheries applauds EWEB and all of the other parties for completing this extensive package of mitigation and improvement measures.”

Eugene voters approved construction of the Carmen-Smith Hydroelectric Project in 1958. It was completed and dedicated on Sept. 9, 1963, and is EWEB’s largest and most important source of utility-owned, low-cost hydroelectricity. Its output is equal to about 9 percent of Eugene’s average power needs.

EWEB is a municipal utility that is governed by a five-member board elected by the citizens of Eugene. EWEB is Oregon's largest citizen-owned utility. In addition to providing electricity to 86,000 customers, it serves almost 200,000 people and businesses in the Eugene area with water.

Besides EWEB, the other parties to the agreement are the National Marine Fisheries Service; U.S. Fish and Wildlife Service; U.S. Forest Service; Oregon Department of Environmental Quality; Oregon Fish and Wildlife Department; Oregon Parks and Recreation Department; Confederated Tribes of the Grand Ronde Community of Oregon; Confederated Tribes of Siletz Indians of Oregon; Confederated Tribes of the Warm Springs Reservation of Oregon; American Whitewater; Cascadia Wildlands Project; McKenzie Flyfishers; Oregon Hunters Association; Oregon Wild; Rocky Mountain Elk Foundation; and Trout Unlimited.