WATER LAW
FERC Regulatory Considerations for Project Modifications By Chuck Sensiba and Elizabeth McCormick
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34 | HYDRO LEADER | February 2021
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PHOTO COURTESY OF THE US NATIONAL ARCHIVES.
Chelan Public Utility District’s Rock Island Project. The licensee requested and received a determination from FERC that investments made during the prior license term would count toward a longer license term at relicensing under the newly enacted section 36 of the Federal Power Act.
t is well known that hydropower is one of the oldest forms of electricity generation in the United States, with hydropower plants accounting for 99 percent of all currently operating capacity built before 1930. Incredibly, the average hydroelectric facility has been operating for over 60 years, and the 50 oldest electricity-generating plants in the United States are all hydroelectric generators that have been in service since 1908. For projects under the jurisdiction of the Federal Energy Regulatory Commission (FERC), licenses are issued for terms of at least 30 and up to 50 years. It is unsurprising, then, that these facilities are frequently in need of repairs to maintain or improve their safety and stability or to bring them into compliance with everchanging environmental requirements. As technology advances, many of the owners and operators of these FERC-licensed facilities are also looking to improve their efficiency, reliability, and modernization. Given the near-limitless variety of improvements and repairs that can be implemented over a hydroelectric facility’s long lifetime, it is critical for the owners and operators of hydropower facilities to understand the most efficient and costeffective ways to achieve these repairs and improvements, which for FERC-licensed facilities are primarily achieved through a license-amendment proceeding. As discussed more fully below, we suggest that licensees consult with FERC regulatory counsel when determining whether a license amendment application may be required; what type of amendment is appropriate; and what other processes, such as consultation with resource agencies or an environmental review process, may be required. Additionally, recent amendments to the Federal Power Act (FPA) provide a significant opportunity for FERC licensees to leverage certain amendments or other improvements to their facilities toward receiving a longer license term upon relicensing.
