Agreement Reached on Removal of Four Klamath Dams

After years of negotiations, 26 negotiating parties have reached agreement to remove four dams on the Klamath River in Oregon and California to help restore the river and revive its ailing salmon and steelhead runs and aid fishing, tribal and farming communities.

Once signed, the Klamath Hydropower Agreement will create a path leading to removing PacifiCorp’s (AMEX: PPW-P) dams in 2020, more than a century after the construction of the first dam blocked salmon and steelhead from reaching more than 300 miles of breeding waters.

“With this agreement from PacifiCorp, the finish line is in sight. The
Klamath River and its fishing, tribal and farming communities will soon
have the relief and the certainty they need for a healthier and more
secure future," Steve Rothert, California Director for American Rivers, said. “When the Klamath dams come down it will be the biggest dam removal project the world has ever seen. It is exciting to see the momentum behind this historic river restoration effort–one that promises to not only restore the health of the river, but also boost local economies and revitalize communities.”

The agreement requires PacifiCorp customers in Oregon to contribute up to $200 million for dam removal and river restoration. If project costs exceed this amount, up to an additional $250 million would come from California. Estimates of dam removal and river restoration costs range from $75 million to $175 million, according to American Rivers.

The agreement also calls for the Secretary of the Dept. of the Interior to oversee further due diligence to refine removal costs and confirm by 2012 that dam removal and river restoration is in the public interest. This agreement and the affirmative determination pave the way to what will be the largest river restoration project in the world.

PacifiCorp’s four dams produce a nominal amount of power, which can be replaced using renewables and efficiency measures, without contributing to climate change, according to American Rivers. A study by the California Energy Commission and the Department of the Interior found that removing the dams and replacing their power would save PacifiCorp customers up to $285 million over 30 years.

A separate Klamath River Basin Restoration Agreement, announced in January, includes provisions for irrigation water allocations, delivery of water for national wildlife refuges, the rebuilding of fish populations and assistance to impacted communities.

This agreement has the potential to end decades of battling over water, fish, power and farming in the Pacific Northwest. Read Associated Press coverage at the link below.

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