BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Consider Decommissioning of the Anderson Hydroelectric Facility.
End
RECOMMENDATION:
Recommendation
A. Receive the cost-benefit analysis for the Anderson Hydroelectric Facility (Facility);
B. Concur with staff's determination, based on results from the cost-benefit analysis, that it would be justified for Valley Water to pursue the surrender and decommissioning of the Facility; and
C. Direct staff to take the necessary steps to seek approval from the Federal Energy Regulatory Commission (FERC) to surrender and decommission the Facility, including, but not limited to:
i. Evaluate the surrender of the license exemption and decommissioning of the Facility in the Anderson Dam Seismic Retrofit Project (ADSRP) Environmental Impact Report (EIR); and
ii. Coordinate with FERC and other regulatory agencies to submit all applications and obtain any necessary approvals to implement decommissioning of the Facility as part of the ADSRP.
Body
SUMMARY:
The Santa Clara Valley Water District (Valley Water) has been operating the Anderson Hydroelectric Facility (Facility) at Anderson Dam for over 30 years. The Facility has been generating renewable energy as part of the overall energy portfolio of Valley Water. Over the last several years, staff has made significant strides in diversifying our energy portfolio towards much more economically favorable and greener solutions to the point that almost 100% of Valley Water's energy use is from carbon-free sources at a very competitive cost. As with any aging infrastructure, the cost of Operations and Maintenance (O&M) has been increasing over the years and, in the last 18 years, exceeded the revenues from power generation at the Facility. Revenues are projected to keep declining over the years and the O&M cost will continue to increase as we reach the end of useful life of the assets at this Facility. Given the negative return on investment as well as the fact that the overall energy p...
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