This dam deal
will cost you
Albany Democrat Herald opinion
11/14/08
Pacific Power, the federal
government and the states of Oregon and California on
Thursday announced a preliminary agreement that will lead
to the destruction of four hydroelectric dams on the
Klamath River. All the details and ramifications are not
yet known, but the deal sounds like bad news for
consumers.
Pacific put a positive spin on it, saying the agreement
protected consumers from liability associated with any dam
removal and also “limits the amount customers would pay
toward environmental improvements and dam removal.”
That sounds suspicious. Why should Pacific customers,
including those in the mid-valley, have any liability or
incur any higher costs at all from a decision that limits
the supply of electric power and likely will contribute to
raising their rates?
American Rivers, a conservation organization that is one
of the driving forces behind getting rid of the dams, said
Pacific agreed to contribute up to $200 million to cover
the cost of taking the dams out. “Dam removal funds,” it
said, “would be obtained from ratepayers in Oregon and
California before removal begins. The impact to customer
bills will be less than 1 percent.”
But that’s not all. If the removal costs more than Pacific
is obliged to pay, Oregon and California together would
pay up to another $250 million. That money, too, would
come from the people, many of them the same ones who also
will pay higher prices for electricity.
The first of the dams was built in 1908, the fourth and
last in 1962. It’s a mystery how recent salmon die-offs
and water shortages can be blamed on a system that has
existed for up to 100 years.
Dam opponents say the power they produce is insignificant
and can be replaced. But the dams power the equivalent of
about 70,000 houses, which doesn’t sound insignificant at
all, and replacement power in the short run likely will
come from burning natural gas, already going up in price
because of growing demand.
Don’t blame Pacific for this deal. The company resisted
the anti-dam forces for as long as it could. It was over a
barrel because the dams were up for relicensing.
Under the agreement, the secretary of the interior will
make the final decision — whether to tear down the dams —
by March 31, 2012. Politics being what it is, it takes no
oracle to predict what the decision will be. It is also a
safe bet that it’s going to cost somebody, and if you’re a
taxpayer or a Pacific customer, that somebody is you. (hh) |