School St. -- Mohawk River

This morning a public meeting was conducted by Federal Energy Regulatory Commission (FERC) on relicensing cases that have taken 3 years (after expiration of license) or longer. The School St. Project (FERC # 2539) owned and operated by Erie Blvd Hydro, a division of Brescan was discussed. Its license expired in 1993, and it has been operating on annual licenses since that time.
Commissioner Wood made it clear that the meeting was to discuss solutions for "log jams" on procedural issues, not to discuss substance of issues. Since beginning this process of reviewing old cases, this Commission has reduced the number of old cases substantially. Commissioner Kelher responded that the settlement discussions were not necessarily a bad thing in terms of delays if they ultimately led to new licenses, which has been the result in many cases he has seen.

Congressman McNaulty then spoke. He said he was there to ensure a complete review of all project alternatives and brought up Green Island Power Authorities preliminary application. He talked about ensuring the public good through the process and providing benefits to local communities. He admitted that he was the least informed on procedural issues but thought this was a common sense issue. He brought up "secret" negotiations and issues concerning fishways and Section 106 consultation (Native American). He said FERC should consider all alternatives.

The substance of the meeting then started. School Street was first because the Congressman was present. FERC staff gave a review of the case history to the Commissioners.

A progress report filed last week by Erie indicated that a tentative settlement had been reached and that they hoped to file it with DEC by year's end and then to FERC once the 401 process was complete.

Staff did not address any issues raised by the Congressman. The Commissioners did ask questions of Erie: 1) When were you first made aware of GIPA's proposal? Who was involved in settlement discussions? Was there any change from their last report? Erie answered all questions with short answers.
They were made aware of the GIPA proposal only through mail and within the last six months. They named all parties involved in settlement discussions.
FERC staff then prepared to move on to the next case. The Congressman asked to be heard and basically said that it appeared FERC was moving forward without a complete record. He said if FERC did that he would take the issue to committee and to the House floor.
Not responding directly to the Congressman but asking to voice comments, DEC explained in a little more detail its process. The fact that a 401 Certificate will be issued in draft form and be open to public comment after negotiations and that this was common in the state. DEC also addressed several other minor issues.
End of discussion on Project.

FERC still has pending the Motion by Erie and the preliminary application by GIPA. We still have the settlement in front of us. Richard's lanauage has been forwarded to Erie. Should the Commission act in GIPA's favor, we would then have another decsion to make concerning the settlement. One thing to keep in mind is that in the end, one outcome could be the takeover of School Street by GIPA. Any settlement passes on to new owners if it is signed and submitted.

After todays call DEC, USFWS, NPS and American Rivers were all talked to seperately. I may go to Washington next week to meet with staff of Clinton's office.

NYRU has begun its review of the GIPA proposal. I will begin submitting comments and study requests in about three weeks.