| Discussion of how settlement will effect
power rates; Comments are in Red text of settlement
is in Black
For the interim Rate fund of $7.69 million (see the charts at the end of
appendix B), this primarily goes to Tule Lake Irrigation District and other users in California
because of the better rate shock mechanism in Oregon.
Oregon users will likely get about $500k
The Alternative power program will invest in renewables to offset rates.
KOPWU estimated that it would cost at least
$250 million to offset rates using renewables. For
example solar panels get about a 1% return on investment in our area therefore to generate
the roughly $6 million needed we would need $600 million worth of solar panels. Settlement only offers $33 million.
But even the $33 million is not guaranteed even if every party agrees to
it and it passes congress, future Congresses must fund the power program years down the
road. It is clear there is no such commitment.
4.1.4.
Availability of Public Funds.
Funding by any
Public Agency Party under this Agreement is subject to the requirements of the
Anti-Deficiency Act, 31 U.S.C. §§ 1341 et seq., and other Applicable Law. Nothing
in this Agreement is intended or shall be construed to require the obligation,
appropriation, or expenditure of any funds from the United States Treasury, or of any fund
controlled by California, Oregon, a County or other local agency, or a Tribe, except as
otherwise permitted by Applicable Law.
In order to qualify for the Power Benefits Off-Project Customers must
agree to everything in the settlement including trying to tie groundwater and surface
water together and supporting massive instream claims.
B.
Off-Project Customers.
i. Until the
Water Rights Retirement Program pursuant to Section 16.2, the Restoration Program pursuant
to Section 10, and the Regulatory Assurances pursuant to Sections 20– 24 are all
available, each Off-Project Customer, as defined above, shall be eligible to receive the
benefits of the Interim Power Sustainability and Long-Term Renewable Power Programs, provided
such customer has enrolled as a Participant to support this Agreement and the
Hydropower Agreement. For this purpose, the Klamath Basin Coordinating Council shall adopt
procedures for enrollment, including specification of the obligations of a Participant to
support these agreements, within three months of the Effective Date.
ii. After the
Water Rights Retirement Program pursuant to Section 16.2, the Restoration Program pursuant
to Section 10, and the Regulatory Assurances pursuant to Sections 20– 24 are all
available, any Off-Project Customer shall be eligible to receive the benefits of the
Interim Power Sustainability and Long-Term Renewable Power Programs, provided such
customer has enrolled in Water Rights Retirement Program, the Restoration Program, or
Regulatory Assurances. For this purpose, the Klamath Basin Coordinating Council or Lead
Agency, as appropriate, shall include procedures for enrollment, including specification
of the obligations of a Participant, in each program as adopted.
On top of the above, in the long term Off-Project Customers must
participate in the HCP’s or other river restoration programs to qualify for power
programs this will likely exclude most well owners away from the river. Or you can qualify by retiring your water rights,
but then you will not need a power rate. To
top it all off the lead agency (US Fish and Wildlife Service) or the Klamath Basin
Coordinating Council (the same settlement group that always outvoted us), will be able to
decide who qualifies and who does not.
27.1.
Program Purpose.
The purpose of
this program is to obtain Federal Project Use Power/Reserve Power to serve all meters and
power loads in the Klamath Reclamation Project that are authorized by Applicable Law.
This program is very poorly defined according to the reclamation service
manual “applicable law” is defined
as follows “Unless specifically authorized by Congress, project use power is not
available to pump non-project water, to operate pumps that were not built as Federal
facilities as part of the project, to pump project water outside the authorized service
area, or provided for on-farm uses such as pressurizing sprinkler systems or pumping from
wells.” Given the above definition there
is only about 8% of the load that qualifies.
27.2.
Program Scope.
27.2.1.
Eligible Meters and Power Loads.
The Parties
agree that meters and power loads eligible for this program element shall be identified
and defined in the Authorizing Legislation attached hereto as Appendix A-1.
27.2.2.
Excluded Meters.
Any meters and
loads not authorized in the Authorizing Legislation attached hereto shall not be eligible
for Project Use Power/Reserve Power pursuant to this Agreement.
There is a rumor going around that Project
Power will result in 1 cent power. This is not
true Pacific Power will still own the meters and be in charge of distribution this a very
big component of the rate which will be tacked onto the power cost making it dramatically
higher than one cent, and likely dramatically higher than 3 cents.
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