Facility is no longer economically viable
EWEB has decided to decommission the Leaburg Hydroelectric Project after an extensive Triple Bottom Line evaluation guided by expert engineering consultants, EWEB customers, and EWEB staff determined the facility is no longer economically viable and it would be irresponsible for EWEB to invest in the future of the facility.
There were several considerations leading up to this decision.
Economic Considerations:
Investing in the Leaburg Project would commit EWEB customers to expensive electricity ($117/MWh, under ideal circumstances).
Instead, EWEB will seek to purchase electricity from alternative sources on the energy market, where prices generally range from $30-$50/MW. Currently, EWEB’s contract with the Bonneville Power Administration provides more than enough electricity at $33/MW and is how EWEB has been meeting demand since pausing generation at the Leaburg project.
Closing the Leaburg facility will lower EWEB’s liability to future risks, such as floods, earthquakes, changing river flows and regulations.
Climate change has already impacted the regularity of snow packs and summer river flows and makes generation at run-of-the-river facilities inconsistent. Fisheries regulations will also become more stringent on hydropower generation. Less water will be available for generation, making investment in the future of the facility an increasingly irresponsible fiscal decision.
Environmental Considerations:
Removing the Leaburg Dam, restoring Leaburg Lake to river form, and keeping water in the McKenzie River rather than diverting it into the power canal will have water quality benefits including reducing temperature loading and will support endangered salmon species.
Social Considerations:
EWEB staff held more than 20 meetings to gather public input on the impacts of the decision. Hundreds of customers in the McKenzie Valley preferred to preserve the lake the project creates as part of diverting water into the power canal, as it is a beloved place to paddle on flat water. A majority of customers indicated their preference for the decision that would have the least impact on their electricity rates.
EWEB staff acknowledge the impact that losing the lake will have on the community and share in the sadness to say goodbye to Leaburg Lake.
Given the evident economic and environmental benefits to decommissioning, and the thousands of customers who prioritize our affordability mandate, we stand by this difficult, but clear decision to decommission the project.
To decommission the Leaburg Hydroelectric Project, EWEB will:
- Remove Leaburg Dam and restore Leaburg Lake to river form.
- Cooperate with transportation authorities to develop access to Leaburg Dam Road on the south side of the river.
- Repair the Leaburg Canal so it can convey tributary flows to the river.
- Work with neighbors who get water from the Leaburg Canal to find alternate solutions, with particular focus on the Leaburg and McKenzie fish hatcheries.
- Perform a similar assessment of the Walterville Power Plant by 2030.
The Leaburg Dam will be removed for the following reasons:
- Federal Energy Regulatory Commission (FERC) Process: FERC’s default position and history maintain that the dam will be required to be removed because the primary purpose of the dam’s construction was for electricity generation, and permission to obstruct the river will not be extended for supplementary benefits such as recreation. FERC oversees all parts of the facility under a single license to operate, and the dam, canal, penstocks, powerhouses, generators, transmission lines, etc. cannot be separated for individual consideration.
- Other Participant Demands: Government agencies and non-government organizations (NGOs) will call for the dam’s removal for associated benefits for fish and wildlife as part of the FERC-mandated process to negotiate the surrender of the license to operate and the impacts of decommissioning the facilities.
- EWEB’s Interest: It is not in EWEB’s interest to own, operate, maintain, and/or mitigate the risk of assets that don’t support our primary mission of delivering electricity and drinking water. The FERC-mandated process will explore any other options that meet EWEB’s needs, including sale, related to the future disposition of this asset.
As EWEB moves forward with decommissioning the project, further public input will be part of the FERC-mandated process.
EWEB staff will advise our customers about project updates, including official opportunities and methods for public input. At this time, the decision is made and further deliberation of its impacts will be ineffective to reverse course.
Background
The Leaburg Hydroelectric Project was built in 1928. It generated electricity for 90 years by having a dam divert water into a canal to keep the water at a consistent elevation for 5 miles so that it could drop 80 feet down into a powerhouse to drive two turbines.
The canal has always leaked, but the discovery of increased seepage and internal erosion of the canal embankments in 2018 prompted the Federal Energy Regulatory Commission (FERC) to order EWEB to dewater the canal and cease power generation.
In response to new information on earthquake safety risks, EWEB initiated a comprehensive assessment of the entire canal in late 2019 to better understand the level of investment that would be required to ensure long term safe and reliable operation. The canal has operated as a stormwater conveyance facility ever since, essentially collecting tributary waters from creeks on the north side of the valley and creating a path for that water to flow into the McKenzie River.
EWEB does not believe there is an imminent danger of a canal breach.
EWEB staff will continue to carefully monitor the structural performance of the Leaburg Canal, particularly in wet weather season and during storm events when tributary creek flows rise. EWEB staff are poised to identify and respond to any unexpected developments along the full length of the canal and will inform canal neighbors of any changes of concern. EWEB is already making the canal safer by implementing risk-reduction measures while pursuing a license surrender and project decommissioning.
EWEB staff is preparing a Leaburg Decommissioning Action Plan to define the next regulatory steps and project milestones to understand the environmental and social impacts, requirements, and opportunities for feedback as they move forward.
Source: EWEB