In a signal that portends well for the Klamath Basin, the Bush Administration announced a nonbinding agreement for removing four dams that are key to resolving the basin's longstanding trouble.
A deal signed Thursday by the US Department of Interior, PacifiCorp and the governors of Oregon and California charted a course for the dams to be turned over to a nonfederal entity for removal starting in 2020.
As reported here, Dean Brockbank, vice president and general council for PacifiCorp, said the company's four key concerns were all met: PacifiCorp is protected from liability, there is a $200 million cap on removal costs to be born by ratepayers, dam removal is far enough in the future to avoid a scramble for replacement power, and PacifiCorp's capital expenditures were held to a minimum.
$200 million in removal costs will be born by ratepayers. The state of California will ask voters to approve a $250 million bond. Surcharges would be about $15 to $20 a year to PacifiCorp's 500,000 customers in Oregon and 45,000 customers in California. Any dam removal costs over $450 million must be worked out later. PacifiCorp also committed to paying California $500,000 a year for fish habitat improvements until the dams are removed.
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