RALEIGH ó The state Division of Water Quality on Thursday approved a water quality certificate for Alcoa Power Generating Inc.’s Yadkin River hydroelectric operation, a key requirement as the company seeks federal relicensing amid a building battle with the state over control of the project.
However, while approving the cerification, officials also specified numerous conditions that Alcoa must meet, including removal of sedimentation that has affected the city of Salisbury’s water intake, monitoring for toxic contaminants in Badin Lake, regulation of reservoir levels and posting of a $240 million surety bond to guarantee improvements in the oxygen content of turbine discharges, which affect fish and other aquatic life.
In granting the certification, the water quality panel said it considered “all aspects of the hydroelectric operation,” which includes facilities at Badin Lake Dam, Falls Dam, High Rock Reservoir and the Tuckertown hydroelectric complex. The evaluation included water quality testing of discharges from the dams; potential movement of sediments and contaminants as a result of the operation of the dams; and low-flow conditions and other potential impacts. Thursday was the deadline for the water-quality division to deliver its findings to the Federal Energy Regulatory Commission as it considers Alcoa’s request for a 50-year renewal of its license.
Although the certification is an important step in the relicensing process, it is not related to Gov. Beverly Perdue’s successful petition to intervene in the relicensing process and does not address additional issues raised in her request. The certification also has no effect on a separate movement, spearheaded by Stanly County officials and water-rights advocates, for the state to create a trust that would acquire and control the dams. Earlier this week, the Senate approved creation of the trust, a move that Alcoa has said it will fight in order to retain the dams and the revenues generated from approximately $44 million in annual electricity sales.
The specific conditions cited in the water-quality certification approval include:
– Sediment removal at the city of Salisbury raw water intake facilities to promote the continued functioning of the intake and use of the waters as related to the designated use for water supply.
– Monitoring of the discharge from the four power generating stations to ensure compliance with water quality standards.
– Monitoring of sediment in the Badin Lake swim/picnic area and Badin Lake boat access area down to the Badin Lake dam for heavy metals, PCBs and poly-aromatic hydrocarbons to ensure the project operation does not result in the downstream transport of contamination.
– A surety bond in the amount of $240 million to guarantee that financial resources are available to make improvements to the hydroelectric turbine system in order to improve dissolved oxygen levels in the discharges.
– A plan to monitor and regulate reservoir levels and flows of power-generating station operations. The plan must include low-flow protocols for the lakes in the APGI Yadkin River system project in case of drought.
– A plan to increase dissolved oxygen levels in order to meet water quality standards done in accordance with the settlement agreement schedule. An additional in-depth engineering study will be done this summer by APGI to demonstrate the effect of recent turbine upgrades.
– A continuing compliance provision to ensure the Division of Water Quality can modify the certification if water quality-related problems develop in the future that can be remedied in the certification.
The certification “is a major, major milestone in this whole process,” said Alcoa spokesman Kevin Lowery.