Decommissioning the Leaburg Hydroelectric Project FAQ

A: In short:

1. Cost of investing in the facility vs. purchasing replacement power
2. Protecting against future liability risks
3. Elimination of long-term, non-mission-based obligations
4. Uncertainty of generation potential due to regulatory and climate concerns
5. Alignment with customer values (reduce costs, preserve water quality, environmental stewardship)

EWEB conducted a Triple Bottom Line Assessment to identify and compare the financial, environmental, and social impacts of repairing the canal to resume hydropower generation or decommissioning the Project. The detailed multi-year evaluation revealed that the heavy expenses to return the Project to service would commit EWEB to a high cost of electricity ($117/MWh) for at least the next forty years. Instead, EWEB will seek to purchase electricity from the Bonneville Power Administration (BPA) at a much lower cost while also exploring other lower cost alternatives to BPA. 

Closing the Leaburg facility would also lower EWEB’s liability to future economic risks, as climate change and increasing regulations on hydropower generation raise further uncertainties as to the economic viability of the Leaburg Hydroelectric Project. Decommissioning the Leaburg Project also aligns with our customers’ values to provide reliable service, protect water quality, and reduce service costs. 

A: Commissioners unanimously approved a Record of Decision in support of the “Management Recommendation: Future Disposition of the Leaburg Hydroelectric Project.” The Recommendation advocates: 

1. permanently discontinuing electricity generation at the Leaburg Hydroelectric Project, 
2. removing Leaburg Dam, restoring the McKenzie to a free-flowing river in the area, 
3. developing access to Leaburg Dam Road on the southern side of the river. EWEB will investigate and facilitate all potential options with those agencies responsible for transportation in the area. There will be an alternatives analysis process with opportunities for all participants to help with the identification of important issues to consider during the decision-making process.
4. modifying the Leaburg Canal for stream and stormwater conveyance (SWC), while preserving the future option to completely restore the site to pre-project conditions, 
5. working with water rights holders to mitigate the effects of dewatering the Leaburg Canal, particularly the Leaburg and McKenzie fish hatcheries, 
6. assessing the Walterville Hydroelectric Project by the early 2030’s, and 
7. identifying opportunities and requirements for Board review, guidance, and direction as we continue the decommissioning process. 

A: In short - not for at least a decade. Before EWEB begins any work on the ground, we'll have years of investigations and studies to conduct and extensive negotiations with various regulators, agencies, partners and interest groups. Here's a rough timeline of decommissioning milestones: 

2018-2022: Leaburg Hydroelectric Project Strategic Evaluation

2023: Decision to Decommission. Leaburg Decommissioning Action Plan (LDAP) development

2023-2027: Implementation of near-term risk reduction measures

2023-2027: License Surrender Application & Settlement Agreement

2028-2029: Environmental Studies (Endangered Species Act consultation, National Environmental Protection Act process)

2030-2032: Design & Permitting - Federal Energy Regulatory Commission Surrender Order

2033: Construction Begins

2033-2040: Decommissioning Implementation & Post-Decommissioning Report

A: The Leaburg Dam serves as a bridge to connect Leaburg Dam Road to Highway 126. Leaburg Dam Road serves several residential homes, as well as Lloyd Knox Park, the Leaburg Hatchery, and Whitewater Ranch. EWEB will collaborate with the agencies responsible for transportation in the area, including Lane County Public Works (LCPW) and the Oregon Department of Transportation (ODOT), to develop an access route that maintains connection between Leaburg Dam Road and Highway 126.

EWEB will work with LCPW and ODOT to investigate all potential concepts including but not limited to connecting Leaburg Dam Road to an improved Leashore Drive and Goodpasture Road, modifying the existing dam structures to serve as a bridge only, or building a new bridge to replace the Leaburg Dam Road bridge. There will be a comprehensive alternatives analysis process with opportunities for all stakeholders to help identify important issues to consider during the decision-making process. At the end of decommissioning, it is EWEB’s intent not to own, operate, or maintain non-mission-supporting assets including those exclusively used for transportation or recreation.

EWEB would like to emphasize:

• EWEB must collaborate with other agencies (LC and ODOT),
• This decision is not up to EWEB alone,
• EWEB intends to reduce our liability footprint with decommissioning the Project and does not intend to be responsible for long term maintenance of the selected access solution,
• We have already made contact with LC and ODOT,
• EWEB and partner agencies will identify the most appropriate solution, aiming to reduce social, environmental, and financial impacts. 

A: EWEB assessed the economic, environmental, and social impacts in its decision to decommission the Project. The chosen alternative to decommission the Project and modify the Leaburg Canal to convey tributary stormwater was the lowest-cost of the proposed alternatives. Nevertheless, the work to remove the Leaburg Dam and work to modify the canal system will be costly. EWEB estimates that the project will cost around $160M and will necessitate approximately an 11% increase to EWEB electric rates from 2024 to 2040 without other financial mitigation, including the postponement of other capital investments and/or pursuit of external funding (e.g., state or federal grants).