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Week Ending July 29, 2005

S.176 A bill to extend the deadline for commencement of construction of a hydroelectric project in the State of Alaska.

BRIEF

   The Haida Corporation cut a deal to build a hydroelectric dam project in southeast Alaska in 2000. Citing the lack of a contract for the sale of electricity generated Haida has not begun building the project. Rules say that after two years the license to build expires or has to be renewed. This is the second renewal of the license.

   The report explained “Section 13 of the Federal Power Act requires that the construction of a licensed project commence within two years from the date the license is issued. The Federal Energy Regulatory Commission (`FERC' or `Commission') is authorized under the Federal Power Act to extend this deadline once, for a maximum of two additional years, upon a finding that such extension is `not incompatible with the public interest.' Consequently, a license is subject to termination if a licensee fails to begin construction within four years after the date the license is issued unless legislation authorizing an additional extension is enacted. S. 176 authorizes FERC to extend the construction deadline for Project No. 11480.”

   “Construction of Project No. 11480 entails building a 20-foot-long, 6-foot-high diversion dam, a 3,200-foot-long penstock, a powerhouse with two turbine-generator units, and a transmission line.”

Sponsor: Senator Lisa Murkowski (R-AK)

Vote: Passed Senate by Unanimous Consent (July 27, 2005)

Cost to the taxpayers: No cost. Any expenses of the Federal Energy Regulatory Commission are to be gotten back through user fees.

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