Issues:
Re-licensing of the Middle Fork power system
PCWA is in the middle of a decade-long process of renewing the license for our Middle Fork power system. The outcome of this process will change the political landscape for Placer County for decades to come.
In a nutshell, when PCWA built the hydroelectric system in 1963, it was necessary to get a 50-year operating license from the Federal Energy Regulatory Commission (FERC). The FERC license expires in 2013, and the Agency is engaged in the complex task of applying for a new license, and proving it is worthy of continuing to operate the system. PCWA had earned a nationwide reputation for its pro-active stakeholder involvement process. For detailed information, see PCWA's Relicensing page.
The PG&E power purchase contract expires in the same year. PCWA expects to be successful in re-licensing, and with that new license will be able to sell power at market value for the first time. For the first 50 years of the process, PG&E and PCWA had a "sweetheart" deal which allowed PG&E to buy all PCWA's power for the cost of generation — not the market value. This will be new revenue for the agency and the county, and it will be considerable, estimated at between $30 million and $100 million per year.
PCWA is setting policies and business plans in place to ensure that revenues will be spent in the most beneficial way for the people of all Placer County; see the revenue spending policy (PDF*, 54 KB) passed by PCWA Board in Spring of 2008. A full power systems business plan will be completed by the end of 2008, which will detail the scope and cost of operations and the improvements that the system will need to be fully run by the Agency.
The County of Placer and PCWA will be sharing equally the surplus revenues generated by the project. In order to manage the transfer of funds, the County and PCWA entered into a Joint Powers Authority (JPA) to avoid confusion and conflicts. I serve on the Board of the JPA. See Post-2013 Middle Fork Revenue plans and policies for more on this part of the story.
For detailed information about the Middle Fork Project Finance Authority, visit PCWA's website and click on any of the documents listed in that section.
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