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FERC Issues Order Issuing New License re Green Mountain Power Corporation's Otter Creek Hydroelectric Project under P-2558(Targeted News Service Via Acquire Media NewsEdge) WASHINGTON, Oct. 23 -- The U.S. Department of Energy's Federal Energy Regulatory Commission issued the text of the following delegated order: Green Mountain Power Corporation Project No. 2558-029 ORDER ISSUING NEW LICENSE (Issued October 23, 2014) INTRODUCTION 1. On March 31, 2010, Vermont Marble Power, Division of Omya, Inc. (Vermont Marble) filed, pursuant to sections 4(e) and 15 of the Federal Power Act (FPA), an application for a new license to continue operation and maintenance of the Otter Creek Hydroelectric Project No. 2558 (Otter Creek Project or project). On November 23, 2010, the Commission issued an order approving the transfer of the license and substitution of applicant for the project from Vermont Marble to Central Vermont Public Service Corporation (Central Vermont). On September 13, 2012, the Commission issued an order approving the transfer of the license and substitution of applicant for the project from Central Vermont to Green Mountain Power Corporation (Green Mountain). Because transferees step into the shoes of the prior licensee, the filings of the previous licensees are referred to as filings by the licensee or Green Mountain. 2. The project has three developments located on Otter Creek in Addison and Rutland counties, Vermont. The project does not occupy federal land. 3. As discussed below, this order issues a new license to Green Mountain for the Otter Creek Project. As previously licensed, the project's authorized installed capacity was 14.349 megawatts (MW). The project's installed capacity authorized under this new license is 22.807 MW. BACKGROUND 4. The Commission issued the original license for the project on February 23, 1976, with an effective date of April 1, 1962, and terminating December 31, 1993. On October 15, 1981, the Commission extended the license term by 18 years. The license for the project expired on March 31, 2012, and since then, the project has operated under annual licenses pending the disposition of the new license application. 5. On May 2, 2011, the Commission issued a public notice that was published in the Federal Register accepting the relicense application for filing, soliciting motions to intervene and protests, indicating the application was ready for environmental analysis, and soliciting comments, recommendations, preliminary terms and conditions, and preliminary fishway prescriptions. The notice set August 30, 2011, as the deadline for filing motions to intervene, protests, comments, recommendation, terms and conditions, and prescriptions. The Vermont Agency of Natural Resources (Vermont ANR) filed a timely motion to intervene. Vermont ANR does not oppose the project. 6. On August 1, 2011, the licensee amended the pending relicense application, proposing physical improvements and operational changes to the project. The proposed changes included, among other things, realignment of the intake at the Proctor Development and removal of inoperable generating equipment from the Proctor powerhouse. 7. On May 14, 2012, the Commission issued a public notice of the amended relicense application that was published in the Federal Register soliciting motions to intervene and protests, indicating the application was ready for environmental analysis, and soliciting comments, recommendations, preliminary terms and conditions, and preliminary fishway prescriptions. No comments or motions to intervene were filed. 8. Rather than waiting for authorization under a relicense, in March 2013, Green Mountain asked for authorization under its annual license to undertake some of the work it had proposed in its August 2011 amendment application, including the realignment of the intake at the Proctor Development and removal of inoperable generating equipment from the Proctor powerhouse. On June 20, 2013, Commission staff issued an order approving Green Mountain's request. 9. A draft Environmental Assessment (EA) was prepared by Commission staff and issued on December 21, 2012, analyzing the impacts of the proposed project and alternatives to it. Vermont ANR, Green Mountain, and the Vermont State Historic Preservation Officer (Vermont SHPO) filed comments on the draft EA. On July 26, 2013, Commission staff issued a final EA, on which no comments were filed. References and citations in this order are to the final EA, unless otherwise noted. 10. The intervention and comments have been fully considered in determining whether, and under what conditions, to issue this license. PROJECT DESCRIPTION AND OPERATION A. Project Area 11. The Otter Creek Project is located on Otter Creek in west-central Vermont within Addison and Rutland counties, near the communities of Proctor, New Haven, and Weybridge. Otter Creek is approximately 100 miles long and flows northeasterly from the headwaters of Emerald Lake to its confluence with Lake Champlain. The Otter Creek watershed drains an area of 1,106 square miles and is located in the Champlain Valley, which is a sub-unit of the larger Lake Champlain Basin. B. Project Facilities 12. The Otter Creek Project consists of three developments: Proctor, Beldens, and Huntington Falls (listed from upstream to downstream). The hydroelectric facilities at each development were developed in the early twentieth century to provide power to the marble mills in Proctor, Middlebury, and Weybridge, Vermont. 1 In the early twentieth century, the Vermont Marble Company expanded production capacity and converted from hydro-mechanical power to hydroelectric generation at each of the three project developments. Proctor Development 13. The Proctor Development consists of a 128-foot-long, 13-foot-high masonry, concrete-capped dam with a 3-foot-high inflatable flashboard system. The dam is located at river mile (RM) 64.2 and impounds a reservoir with a surface area of 95 acres and a usable storage capacity of 275 acre-feet at a normal maximum water surface elevation of 469.5 feet above mean sea level (msl). 14. Inflow from the reservoir passes through a 17-foot-deep by 45-foot-wide by 115-foot-long gated forebay-intake structure that contains trashracks with 1-inch clear bar spacing. Two steel penstocks convey water from the forebay to the powerhouse: (1) a 9-foot-diameter penstock that extends 354 feet from the dam to a surge tank and continues as an 8-foot-diameter penstock for an additional 96 feet from the surge tank to the powerhouse; and (2) a 7 foot-diameter, 500-foot-long penstock that extends directly from the dam to the powerhouse. The 33-foot by 100-foot concrete masonry powerhouse has an attached 28-foot by 48-foot steel structure that contains one vertical Francis turbine-generator unit with an authorized capacity of 3,000 kilowatts (kW). The Proctor Development also includes a 1,200-foot-long access road and a 265-foot-long access bridge that is used to access the powerhouse. 15. The Proctor Development creates a 680-foot-long bypassed reach (i.e., Sutherland Falls), which drops approximately 100 feet in elevation from the base of the Proctor dam to the tailrace. There are no project recreation facilities at this development; however, there are two informal recreation sites that provide access to the Proctor impoundment and tailrace. The informal impoundment access site, which can be accessed via the Main Street Marble Bridge located less than one mile upstream of the Proctor dam provides opportunities for bank fishing, an access site for canoes and kayaks, and a pull-off that can accommodate two vehicles. The informal tailrace access site, which is accessible via the Proctor Development's access road, provides opportunities for bank fishing, an access site for canoes and kayaks, sightseeing opportunities (of Sutherland Falls and the powerhouse), and an informal pull-off area that can accommodate two vehicles. Beldens Development 16. The Beldens Development consists of a concrete dam with 2.5-foot-high wooden flashboards. The dam comprises two sections on either side of a bedrock island: a 15-foot-high, 56-foot-long section on the west side (Beldens west dam) and a 24 foot high, 57-foot-long section on the east side (Beldens east dam). The dam is located at RM 23 and impounds a reservoir with a surface area of 22 acres and a usable storage capacity of 253 acre-feet at a normal maximum water surface elevation of 283 feet msl. 17. Inflow from the reservoir passes through two intakes: (1) a 20 foot high by 35 foot-wide intake with 13-foot-high by 26-foot-wide trashracks with bar spacing of 1.125 inches on center; and (2) a 34.5-foot-high by 40-foot-wide intake with 13-foot-high by 40-foot-wide trashracks with 3-inch clear bar spacing. Water is conveyed to the powerhouses through two penstocks: (1) a 12-foot-diameter steel penstock that bifurcates into two 10 foot-diameter, 30 foot-long sections, each leading to a 40-foot by 44-foot concrete and masonry powerhouse containing two horizontal Francis turbine-generator units with a combined authorized capacity of 1,749 kW; and (2) a 12 foot-diameter, 45-foot-long concrete penstock that leads to a 40-foot by 75-foot concrete powerhouse containing one horizontal Kaplan turbine-generator unit with an authorized capacity of 4,100 kW. 18. The Beldens Development has two separate bypassed reaches: (1) a 150 foot long bypassed reach extending from the base of the Beldens east dam to the tailrace; and (2) a 450-foot-long bypassed reach extending from the base of the Beldens west dam to the tailrace. Existing project recreation facilities at this development include a: (1) canoe/kayak put-in and take-out; (2) canoe/kayak portage; (3) viewing platform; and (4) picnic area. Huntington Falls Development 19. The Huntington Falls Development consists of a 31-foot-high, 187-foot-long concrete dam with a 2.5-foot-high inflatable flashboard system. The dam is located at RM 21 and impounds a reservoir with a surface area of 23 acres with a storage capacity of 234 acre-feet at a normal maximum water surface elevation of 217.8 feet msl. 20. Inflow from the reservoir passes through two intakes, including: (1) a 20-foot-high by 40-foot-wide intake with 13-foot-high by 26-foot-wide trashracks with bar spacing of 1.125 inches on center; and (2) a 38-foot-high by 40-foot-wide intake with 16 foot high by 30-foot-wide trashracks with 2-inch clear bar spacing. Water is conveyed to the powerhouses through three penstocks: (1) two, 10-foot-diameter, 30 foot-long steel penstocks that lead to a 42-foot by 60-foot concrete and masonry powerhouse containing two horizontal Francis turbine-generator units with a combined authorized capacity of 1,400 kW; and (2) a 12-foot-diameter, 75-foot-long concrete penstock that leads to a 40-foot by 75-foot concrete powerhouse containing one horizontal Kaplan turbine-generator unit with an authorized capacity of 4,100 kW. 21. The Huntington Falls Development creates a 215-foot-long bypassed reach. Existing project recreation facilities at this development include a: (1) canoe/kayak put-in and take-out; (2) canoe/kayak portage; and (3) picnic/overlook area. 22. A more detailed project description is contained in Ordering Paragraph (B)(2). C. Project Boundary 23. The existing project boundary for the Proctor Development encompasses the Proctor impoundment, following the floodplain contour elevation of 482.1 feet msl, and extends approximately 6 miles upstream of the dam. The project boundary also extends downstream from the Proctor dam to include the bypassed reach, 240 feet of Otter Creek downstream of the powerhouse, and all project facilities, including the dam, penstocks, powerhouse, a 265-foot-long bridge located 760 feet downstream of the Proctor dam that is used to access the Proctor powerhouse, and a 1,200-foot-long access road. A total of approximately 608 acres of lands and waters, including those lands surrounding project structures and the impoundment shoreline, are currently included within the project boundary. 24. The existing project boundary for the Beldens Development encompasses the Beldens impoundment, following a contour elevation of 286.5 feet msl, and extends approximately 1.8 miles upstream of the dam. The project boundary also extends approximately 550 feet downstream of the dam, enclosing all project structures and recreation facilities, encompassing a total of approximately 82 acres. 25. The existing project boundary for the Huntington Falls Development encompasses the Huntington Falls impoundment, following a contour elevation of 230 feet msl, and extends approximately 1.3 miles upstream of the dam. The project boundary also continues for approximately 500 feet downstream of the powerhouse, enclosing all project structures and recreation facilities, except for a section of the portage trail from the canoe/kayak take-out to its intersection with Morgan Horse Farm Road as discussed later in this order. The Huntington Falls Development project boundary encompasses a total of approximately 74 acres. D. Current Project Operation Proctor 26. The Proctor Development operates in what Green Mountain refers to as a "modified run-of-river mode." During normal operation, Green Mountain maintains the impoundment water surface elevation at or near the top of the inflatable flashboards (469.5 feet msl). Inflow to this development is either released through the powerhouse or passed over the dam. The current license authorizes Green Mountain to periodically draw down the Proctor impoundment up to 4 feet (i.e., to an elevation of 465.5 feet msl), if such drawdowns are needed to perform maintenance activities or repairs, create additional reservoir storage in anticipation of high flows, or to supply additional water to the powerhouse to meet Independent System Operator (ISO)-New England or local power demands. On average, 4-foot drawdowns of the Proctor impoundment occur infrequently (once or twice annually), while 1-foot drawdowns occur more frequently (approximately 10 times annually). Typically, the average duration of these drawdowns is approximately 24 hours. 27. River flows between 70 and 325 cfs are used for power generation. Flows less than 70 cfs and in excess of 325 cfs are spilled over the dam crest and into the bypassed reach. 28. The current project license requires that Green Mountain provide 50 percent of project inflow downstream of the Proctor powerhouse during the months of April and May, and the first two weeks of June, and 100 cfs, or inflow (whichever is less), at all other times to protect fishery and aquatic resources. Beldens 29. The Beldens Development operates in a run-of-river mode. During normal operation, Green Mountain maintains the impoundment water surface elevation at or near the top of the wooden flashboards (283 feet msl). Inflow from the Beldens Development is either released through the powerhouse or passed over the spillway. The current project license requires that Green Mountain provide a continuous flow of 5 cfs, or inflow to the reservoir (whichever is less), to the Belden's bypassed reach to protect fishery and aquatic resources. 30. River flows between 80 and 2,000 cfs are used for power generation. Flows less than 80 cfs and in excess of 2,000 cfs are spilled over the dam crest and into the bypassed reaches. Huntington Falls 31. The Huntington Falls Development operates in a run-of-river mode. During normal operation, Green Mountain maintains the impoundment water surface elevation at or near the top of the inflatable flashboards (217.8 feet msl). Inflow from the Huntington Falls Development is either released through the powerhouse or passed over the spillway. The current project license requires that Green Mountain provide a continuous flow of 15 cfs, or inflow to the reservoir (whichever is less), to the Huntington Fall's bypassed reach to protect fishery and aquatic resources. 32. River flows between 100 cfs and 2,010 cfs are used for power generation. Flows less than 100 cfs and in excess of 2,010 cfs are spilled over the dam crest and into the bypassed reach. E. Proposed Project Facilities 33. At the Proctor Development, Green Mountain proposes to: (1) install a new runner at turbine-generator unit 1 and install new turbine-generator units 2 through 4, resulting in an increase in the development's authorized capacity from 3,000 to 10,233 kW and an increase in the maximum hydraulic capacity from 325 to 1,188 cfs; and (2) install new electrical switchgear, breakers, controls, and relays. 34. At the Huntington Falls Development, Green Mountain proposes to: (1) install new turbine-generator units 1 and 2, resulting in an increase in the development's authorized capacity from 5,500 to 6,725 kW and an increase in the maximum hydraulic capacity from 2,010 to 2,250 cfs; (2) install new switchgear, breakers, control, and relays; and (3) construct a new minimum flow gate at the southern end of the Huntington Falls dam. F. Proposed Project Operation 35. At the Proctor Development, Green Mountain proposes to eliminate the existing 4-foot drawdown of the Proctor reservoir (except during infrequent emergency operations and maintenance activities) and operate the development in a run-of-river mode from July 1 through April 30, when inflow is less than 200 cfs, and from May 1 through June 30, when inflow is less than 400 cfs. At all other times, Green Mountain proposes to operate the Proctor Development in a 1.5-foot drawdown/refill cycle (i.e., peaking mode). During peaking operations, Green Mountain proposes to implement the following maximum powerhouse discharges to protect aquatic resources within Otter Creek: - from May 1 through June 30, 1.5 times inflow when inflow is equal to or greater than 400 cfs; - from July 1 through July 15, 1.5 times inflow when inflow is between 200 and 400 cfs, and 2 times inflow when inflow is equal to or greater than 400 cfs; - from July 16 through December 15, 2.5 times inflow when inflow is between 200 and 400 cfs, and 3 times inflow when inflow is equal to or greater than 400 cfs; - from December 16 through March 15, 2.5 times inflow when inflow is between 200 and 400 cfs, and 3 times inflow when inflow is equal to or greater than 400 cfs; and - from March 16 through April 30, 2.5 times inflow when inflow is between 200 and 400 cfs, and 3 times inflow when inflow is greater than or equal to 400 cfs. 36. Green Mountain proposes to continue to operate the Beldens and Huntington Falls developments in a run-of-river mode. G. Proposed Environmental Measures 37. In addition to the project design and operational measures discussed above, Green Mountain proposes the following. 38. To minimize soil erosion and sedimentation into Otter Creek, Green Mountain proposes to implement erosion and sediment control measures during construction of the proposed recreational enhancements at the Proctor and Beldens developments. 39. To prevent the introduction of hazardous materials into project waters, Green Mountain proposes to file a spill prevention control and countermeasures plan for Commission approval. 40. To reduce debris loading and ice buildup, Green Mountain proposes to replace the existing turbine-generator unit 3 trashracks at the Huntington Falls Development with trashracks that have 2-inch clear-spaced bars, a maximum approach velocity of 2 feet per second, and an orientation parallel to river flow. 41. To improve aesthetics and habitat conditions for aquatic species, Green Mountain proposes to provide a continuous minimum flow of: (1) 60 cfs to the Proctor bypassed reach; (2) 25 cfs to the Beldens west bypassed reach; (3) 10 cfs to the Beldens east bypassed reach; and (4) 66 cfs to the Huntington Falls bypassed reach. 42. To improve accessibility to the tailrace access site at the Proctor Development, Green Mountain propose to: (1) construct a gravel parking lot for two to three vehicles; and (2) install directional signage. 43. To improve boater safety, Green Mountain proposes to add signage and clear brush at the Beldens Development's canoe/kayak take-out and portage, and modify the location of the boat barrier at the Huntington Falls Development. 44. To protect historic properties, Green Mountain proposes to implement the Historic Properties Management Plan (HPMP), filed on March 18, 2013. SUMMARY OF LICENSE REQUIREMENTS 45. As summarized below, this license, which authorizes 22.807 MW of renewable energy, requires a number of measures to protect and enhance aquatic, terrestrial, recreation, cultural, and aesthetic resources at the project. 46. To protect geology and soils, aquatic resources, and recreation, the license requires the conditions of the Vermont Department of Environmental Conservation (Vermont DEC) water quality certification (discussed further below). 47. The license requires Green Mountain to develop its proposed spill prevention control and countermeasures plan with site-specific provisions to minimize the potential for hazardous material spills and procedures to minimize the extent and adverse effects of spills that may occur. 48. The license requires Green Mountain to replace the existing turbine-generator unit 3 trashracks at the Huntington Falls development with its proposed trashracks. 49. To protect terrestrial resources, the license requires Green Mountain to develop a terrestrial monitoring and management plan with provisions to prevent the spread of invasive plants, revegetate disturbed areas, and ensure the protection of federally-protected wildlife species during project construction activities. 50. To enhance recreation and improve boater safety, the license requires Green Mountain to develop a recreation plan that includes the recreation enhancements and safety measures proposed by Green Mountain, with additional provisions to: (1) ensure recreationists' safety during construction activities at the Proctor Development; and (2) develop interpretive signage at the Proctor Development. 51. To protect cultural resources, the license requires Green Mountain to implement a programmatic agreement (PA) that requires the HPMP, filed on March 18, 2013, to be revised to include emergency procedures that will be implemented if an emergency occurs and properties eligible for or listed on the National Register of Historic Places (historic properties) are affected. WATER QUALITY CERTIFICATION 52. Under section 401(a)(1) of the Clean Water Act (CWA), the Commission may not issue a license authorizing the construction or operation of a hydroelectric project unless the state water quality certifying agency either has issued water quality certification (certification) for the project or has waived certification by failing to act on a request for certification within a reasonable period of time, not to exceed one year. Section 401(d) of the CWA provides that the certification shall become a condition of any federal license that authorizes construction or operation of the project. 53. The licensee originally applied to Vermont DEC for certification for the Otter Creek Project on August 26, 2011, which Vermont DEC received on August 27, 2011. Upon filing its amended relicense application on August 1, 2011, the licensee filed an amended certification application with Vermont DEC on September 7, 2011, which was received by Vermont DEC on September 8, 2011, and subsequently withdrawn and refiled by the licensee on June 6, 2012. Green Mountain withdrew and resubmitted requests for certification for the project on March 22, 2013, and January 23, 2014, respectively, which were received by Vermont DEC on March 26, 2013, and January 24, 2014, respectively. On May 30, 2014, Vermont DEC issued certification for the project that includes conditions, which are set forth in Appendix A of this order and incorporated into the license by Ordering Paragraph (D). 54. The certification includes requirements for the maximum powerhouse discharges proposed by Green Mountain at the Proctor Development, run-of-river operation at the Beldens and Huntington Falls developments, target impoundment elevations, minimum flows, impoundment refill procedures, a flow management and water level plan, future upstream or downstream fish passage facilities if determined to be needed by U.S. Fish and Wildlife Service (FWS) or Vermont Fish and Wildlife Department, a debris management plan, and a recreation plan. 55. In Appendix A, there are certain certification conditions that either: (1) do not require the licensee to file plans with the Commission for approval; (2) do not require the licensee to file some reports with the Commission that are needed to demonstrate compliance with license requirements; (3) require agency, but not Commission, notification of emergencies and other activities; or (4) contemplate unspecified long-term changes to project operations or facilities for the purpose of mitigating environmental impacts. Therefore, Article 401 requires the licensee to: (1) consult with other agencies during plan development and file the plans with the Commission for approval; (2) file reports with the Commission; (3) notify the Commission of emergencies and other activities; and (4) file any amendment application(s), as appropriate. SECTION 18 FISHWAY PRESCRIPTIONS 56. Section 18 of the FPA provides that the Commission shall require the construction, maintenance, and operation by a licensee of such fishways as may be prescribed by the Secretary of the Interior or the Secretary of Commerce, as appropriate. No fishway prescriptions or reservations of authority were filed under section 18 of the FPA. THREATENED AND ENDANGERED SPECIES 57. Section 7(a)(2) of the Endangered Species Act requires federal agencies to ensure their actions are not likely to jeopardize the continued existence of federally listed threatened and endangered species, or result in the destruction or adverse modification of their designated critical habitat. 58. The endangered Indiana bat (Myotis sodalis) is the only federally listed species with the potential to occur in the project area. Indiana bats are known to occur in both Rutland and Addison counties, though there is no information in the project record indicating that Indiana bats exist in the immediate project vicinity. 59. In the EA, staff determined that with its recommended measures, relicensing the project is not likely to adversely affect the Indiana bat or its habitat. FWS concurred with this finding by letter filed on February 21, 2013. Article 404 includes staff's recommended measures. NATIONAL HISTORIC PRESERVATION ACT 60. Under section 106 of the National Historic Preservation Act and its implementing regulations, federal agencies must take into account the effect of any proposed undertaking on properties listed or eligible for listing in the National Register (defined as historic properties) and afford the Advisory Council on Historic Preservation a reasonable opportunity to comment on the undertaking. This generally requires the Commission to consult with the State Historic Preservation Officer (SHPO) to determine whether and how a proposed action may affect historic properties, and to seek ways to avoid or minimize any adverse effects. 61. To satisfy these responsibilities, the Commission executed a PA with the Vermont SHPO, and Green Mountain concurred with the stipulations of the PA. The PA requires Green Mountain to implement the HPMP, filed on March 18, 2013, along with a modification that requires Green Mountain to implement emergency procedures if an emergency occurs and historic properties are affected. Execution of the PA demonstrates the Commission's compliance with section 106 of the NHPA. Article 406 requires Green Mountain to implement the PA. RECOMMENDATIONS OF FEDERAL AND STATE FISH AND WILDLIFE AGENCIES PURSUANT TO SECTION 10(j) OF THE FPA 62. Section 10(j) of the FPA requires the Commission, when issuing a license, to include conditions based on recommendations submitted by federal and state fish and wildlife agencies pursuant to the Fish and Wildlife Coordination Act, to "adequately and equitably protect, mitigate damages to, and enhance fish and wildlife (including related spawning grounds and habitat)" affected by the project. 63. No agency filed section 10(j) recommendations for the Otter Creek Project. SECTION 10(a)(1) OF THE FPA 64. Section 10(a)(1) of the FPA requires that any project for which the Commission issues a license be best adapted to a comprehensive plan for improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce; for the improvement and utilization of waterpower development; for the adequate protection, mitigation, and enhancement of fish and wildlife; and for other beneficial public uses, including irrigation, flood control, water supply, recreation, and other purposes. A. Spill Prevention Control and Countermeasures Plan 65. Green Mountain proposes to file, for Commission approval, a spill prevention control and countermeasures plan to prevent the introduction of hazardous materials into project waters during construction related to upgrades of the turbine-generator units and enhancement of recreation facilities, and operation and maintenance of the project. In the EA, staff concluded that Green Mountain's proposed construction activities, and operation and maintenance of the project, could result in hazardous material spills, which could degrade water quality and negatively affect aquatic resources. Because Green Mountain did not provide any details regarding the spill prevention control and countermeasures plan, staff recommended the plan include site-specific measures to minimize the potential for hazardous material spills and procedures to minimize the extent and adverse effects of spills that may occur. Article 402 requires this plan. B. Fish Entrainment at the Huntington Falls Development 66. The existing trashracks for turbine-generator unit 3 at the Huntington Falls Development have 2-inch clear bar spacing and are oriented 45 degrees to river flow. To reduce debris loading and ice buildup, Green Mountain proposes to replace these trashracks with trashracks that have 2-inch clear bar spacing, a maximum approach velocity of 2 feet per second, and an orientation parallel to river flow. 67. In the EA, Commission staff determined that orienting the new turbine-generator unit 3 trashracks parallel to inflow could subject a greater number of fish to entrainment in comparison to the existing trashracks that are angled to inflow at 45 degrees, which may help some fish avoid entering the project intakes. However, with a maximum approach velocity of 2 feet per second, staff concluded that the escape speeds of most adult game fish present within the Huntington Falls impoundment would allow them to avoid impingement and entrainment at the turbine-generator unit 3 trashracks. In addition, staff concluded that smaller fish, which would have a higher likelihood of entrainment at the Huntington Falls Development due to their slower swimming speed, have been shown to exhibit a high rate of survival (90 percent) when passing through Kaplan turbines. Due to these findings, staff concluded that the proposed trashrack with 2-inch clear bar spacing, a maximum approach velocity of 2 feet per second, and an orientation parallel to flow would adequately protect fish from entrainment and impingement at the Huntington Falls Development. Therefore, Article 403 requires the licensee to file with the Commission for approval, design drawings for a trashrack that meets these specifications. C. Terrestrial Monitoring and Management Plan 68. Green Mountain's proposal to install new turbine-generator units and enhance recreation facilities would require the use of heavy equipment. The use of heavy equipment could temporarily disturb wildlife in and around project lands, including Indiana bats and bald eagles. Ground-disturbing activities related to proposed recreational facility upgrades could also allow invasive plant species to become established. Further, although likely to be an infrequent occurrence during the license term, the removal of trees within the project area for safety or project access purposes could negatively affect Indiana bats which require roosting trees for breeding and shelter outside of the hibernation period. In the EA, staff recommended that Green Mountain develop and implement a terrestrial monitoring and management plan with specific provisions to re-vegetate areas disturbed by construction activities authorized under this license, prevent the spread of invasive plants, and protect federally-protected wildlife species and their respective habitats within the project area. Therefore, Article 404 of this license requires Green Mountain to file, for Commission approval, a terrestrial monitoring and management plan that contains the staff-recommended provisions. D. Recreation Plan 69. Green Mountain proposes to formalize the tailrace access site by adding a parking lot at the Proctor Development and improve boater safety by installing signage that clearly identifies the location of the existing canoe/kayak take-out and portage at the Beldens development and modifying the location of the boat barrier at the Huntington Falls development; however, Green Mountain did not provide details on the lot design or its proposed measures for improving boater safety. Also, the installation of the turbines at the Proctor Development would adversely affect recreationists at the tailrace because the tailrace access road would be used during the installation and portions of the tailrace site would be closed to recreational use during construction. 70. In the EA, staff recommended that Green Mountain develop a recreation plan that contains conceptual drawings of the parking lot, a schedule for installing signage and moving the boat barrier to improve boater safety, and measures to ensure recreationists' safety during installation of the turbines at the Proctor Development. Staff also recommended that the recreation plan contain a provision to install interpretive signage at the Proctor Development to provide information on how the project was integral in the development of the marble industry in the Otter Creek Valley. Certification condition H requires a recreation plan for the construction and maintenance of recreational facilities at the project, and Article 405 expands the required plan to include the staff-recommended provisions discussed above. ADMINISTRATIVE CONDITIONS A. Annual Charges 71. The Commission collects annual charges from licensees for administration of the FPA. Article 201 provides for the collection of funds for administration of the FPA. B. Exhibit F and G Drawings 72. The Exhibit F drawings filed on August 1, 2011 (sheets 2 through 13) and March 29, 2013 (sheet 1), are approved and made part of the license (ordering paragraph (C)). The Commission requires licensees to file sets of approved project drawings in electronic file format. Article 202 requires the filing of these drawings. 73. The Exhibit G drawings filed on May 11, 2012, are not approved. The Huntington Falls Development's existing portage trail from the take-out to the Morgan Horse Farm Road, which is a project-related recreation facility and needed for project purposes, is not included within the project boundary. Moreover, the Commission's regulations require that a project boundary generally be no more than 200 feet from the exterior margin of a reservoir, unless additional lands are "necessary for project purposes, such as recreation, shoreline control, or protection of environmental resources." However, in certain locations the project boundary for the Proctor Development is upwards of approximately 2,000 feet from the exterior margin of the Proctor impoundment. Article 203 requires Green Mountain to file revised Exhibit G drawings to include the portion of the portage trail described above within the project boundary for the Huntington Falls Development. Article 203 also requires Green Mountain to specify the project purposes that are served by the lands in the current project boundary along the shoreline of the Proctor impoundment, specify whether any lands currently in the project boundary are not serving a project purpose, and revise the Exhibit G drawings accordingly. C. Amortization Reserve 74. The Commission requires that for new major licenses, non-municipal licensees must set up and maintain an amortization reserve account upon license issuance. Article 204 requires the establishment of the account. D. Headwater Benefits 75. Some projects directly benefit from headwater improvements that were constructed by other licensees, the United States, or permittees. Article 205 requires the licensee to reimburse such entities for these benefits if they were not previously assessed and reimbursed. E. Use and Occupancy of Project Lands and Waters 76. Requiring a licensee to obtain prior Commission approval for every use or occupancy of project lands or waters would be unduly burdensome. Therefore, Article 407 allows the licensee to grant permission, without prior Commission approval, for the use and occupancy of project lands and waters for such minor activities as landscape planting. Such uses must be consistent with the purposes of protecting and enhancing the scenic, recreational, and environmental values of the project. F. Review of Final Plans and Specifications 77. Article 301 requires the licensee to provide the Commission's Division of Dam Safety and Inspection's New York Regional Office (D2SI-NYRO) with licensee-approved cofferdam and deep excavation construction drawings, should construction require cofferdams or deep excavations. 78. Because the new license will modify project operation at the Proctor Development, Article 302 requires the licensee to assess the effects of modifying project operation on flood routing and the project's flashboard system, and to develop a plan, if necessary, to ensure the continued safe operation of the project during high flows. 79. Article 303 requires the licensee to submit one copy of its plans and specifications and supporting design document to the Commission's D2SI-NYRO for review and approval. The submittal must also include: a Quality Control and Inspection Program, a Temporary Construction Emergency Action Plan, and Soil Erosion and Sediment Control Plan. 80. Where new construction or modifications to the project are involved, the Commission requires licensees to file revised drawings of project features as-built. Article 304 provides for the filing of these drawings. 81. Article 305 requires the licensee to coordinate any modifications that would affect project works or operation resulting from environmental requirements with the Commission's D2SI-New York Regional Office. STATE AND FEDERAL COMPREHENSIVE PLANS 82. Section 10(a)(2)(A) of the FPA, requires the Commission to consider the extent to which a project is consistent with federal or state comprehensive plans for improving, developing, or conserving a waterway or waterways affected by the project. Under section 10(a)(2)(A), federal and state agencies filed 39 comprehensive plans that address various resources in Vermont. Of these, staff identified and reviewed 11 comprehensive plans that are relevant to this project. No conflicts were found. APPLICANT'S PLANS AND CAPABILITIES 83. In accordance with sections 10(a)(2)(C) and 15(a) of the FPA, Commission staff evaluated Green Mountain's record as a licensee for these areas: (A) conservation efforts; (B) compliance history and ability to comply with the new license; (C) safe management, operation, and maintenance of the project; (D) ability to provide efficient and reliable electric service; (E) need for power; (F) transmission services; (G) cost effectiveness of plans; and (H) actions affecting the public. This order adopts staff's analysis and conclusions. A. Conservation Efforts 84. Section 10(a)(2)(C) of the FPA requires the Commission to consider the electricity consumption improvement program of the applicant, including its plans, performance, and capabilities for encouraging or assisting its customers to conserve electricity cost-effectively, taking into account the published policies, restrictions, and requirements of state regulatory authorities. The Otter Creek Project will become a component of the resource portfolio of Green Mountain and continue providing hydroelectric generation to meet part of Vermont's power requirements, resource diversity, and capacity needs. The Otter Creek Project is located within the jurisdiction of the New England Independent System Operator (ISO-New England), which is a subregion of the Northeast Power Coordinating Council Inc., a region of the North American Electric Reliability Council (NERC). ISO-New England is a regional transmission organization that coordinates the movement of wholesale electricity in the New England states, and provides opportunities for end-use customers to realize the value for reducing their demand for electricity. 85. Staff concludes that, given the limits of their ability to influence users of the electricity generated by the project, Green Mountain will comply with section 10(a)(2)(C) of the FPA. B. Compliance History and Ability to Comply with the New License 86. Because the project was only recently transferred to Green Mountain, the licensee's compliance history at the project is limited. Green Mountain, as a licensee at its other hydroelectric projects, has an overall record of making timely filings and compliance with its licenses is satisfactory. Because the licensee has a satisfactory record of compliance at its other projects and has filed with the Commission adequate plans and schedules to comply with the new Otter Creek license, staff believes that Green Mountain can satisfy the conditions of a new license. C. Safe Management, Operation, and Maintenance of the Project 87. Staff has reviewed Green Mountain's plans for management, operation, and maintenance of the project in its license application. The project is subject to the requirements of 18 C.F.R. Part 12 and evaluated according to the criteria provided in the Commission's Engineering Guidelines. Staff concludes that there is no reason to believe that Green Mountain cannot safely manage, operate, and maintain the dam and other project works in accordance with the Commission's standards and oversight. D. Ability to Provide Efficient and Reliable Electric Service 88. Staff has reviewed Green Mountain's plans and its ability to operate and maintain the project in a manner most likely to provide efficient and reliable electric service. Staff's review indicates that Green Mountain plans to regularly inspect the project turbine-generator units to ensure they continue to perform in an optimal manner, schedule maintenance to minimize effects on energy production, and undertake the necessary initiatives to ensure the project is able to operate reliably into the future. Staff concludes that Green Mountain is capable of operating the project to provide efficient and reliable electric service in the future. E. Need for Power 89. To assess the need for power, staff looked at the needs in the operating region in which the project is located. The Otter Creek Project is a component of the resource portfolio of Green Mountain and will continue providing hydroelectric generation to meet part of Vermont's power requirements, resource diversity, and capacity needs. The project currently produces about 52,800,000 (kilowatt-hours) kWh per year. Green Mountain is proposing to increase the generating capacity of the existing project by 8.458 MW and generate about 69,000,000 kWh per year. The NERC annually forecasts electricity supply and demand nationally and regionally for a 10-year period. 90. The ISO-New England is a summer-peaking region, and the winter peaks are normally less than those experienced in the summer. According to NERC's 2011 forecast, summer peak demand requirements for the ISO-New England region are projected to grow at a compound annual growth rate of 0.84 percent from 2014 through 2023. The capacity margins are forecasted to decrease from about 13.85 percent in 2014 to about 12.07 percent in 2023 (NERC, 2013). Staff concludes that power from the Otter Creek Project would help meet a need for power in the ISO-New England region in both the short- and long-term. F. Transmission Services 91. The Otter Creek Project is an existing facility that is already integrated into Green Mountain's electrical system. The system features numerous interconnections along its length, which are used to deliver energy to other systems or directly to power consumers. Power from the Proctor Development is transmitted to a 46-kV step-up transformer before being distributed to the Green Mountain transmission and distribution systems. At the Beldens and Huntington Falls developments, power is transmitted to 46-kV step-up transformers before going to the Green Mountain transmission system. Green Mountain considers these transformers to be the point of interconnection of the hydroelectric developments with the Green Mountain grid system. G. Cost Effectiveness of Plans 92. Green Mountain plans to make a number of facility and operational modifications to both improve project generating capability and enhance environmental resources affected by the project. Based on Green Mountain's record as an existing licensee at its other hydroelectric projects, staff concludes that these plans are likely to be carried out in a cost-effective manner. H. Actions Affecting the Public 93. Green Mountain provided extensive opportunity for public involvement in the development of its applications for other licenses. Green Mountain anticipates using the project to help meet local power needs, provide employment opportunity, and provide recreational opportunities. PROJECT ECONOMICS 94. In determining whether to issue a new license for an existing hydroelectric project, the Commission considers a number of public interest factors, including the economic benefits of project power. Under the Commission's approach to evaluating the economics of hydropower projects, as articulated in Mead Corp., the Commission uses current costs to compare the costs of the project and likely alternative power with no forecasts concerning potential future inflation, escalation, or deflation beyond the license issuance date. The basic purpose of the Commission's economic analysis is to provide a general estimate of the potential power benefits and the costs of a project, and of reasonable alternatives to project power. The estimate helps to support an informed decision concerning what is in the public interest with respect to a proposed license. 95. In applying this analysis to the Otter Creek Project, staff has considered three options: the no-action alternative, Green Mountain's proposal, and the project as licensed herein. Under the no-action alternative, the project would continue to operate as it does now. The project has an installed capacity of 14.349 MW and generates an average of 52,800 MWh of electricity annually. The average annual project cost is about $3,630,528, or $68.76/MWh. When staff multiplied its estimate of average generation by the alternative power cost of $31.32/MWh, staff gets a total value of the project's power of $1,653,696 in 2013 dollars. To determine whether the proposed project is currently economically beneficial, staff subtracted the project's cost from the value of the project's power. Therefore, the project costs $1,976,832, or $37.44/MWh, more to produce power than the likely alternative cost of power. 96. As proposed by Green Mountain, the levelized annual cost of operating the Otter Creek Project is $5,585,550, or $80.95/MWh. The proposed project would have an installed capacity of 22.807 MW, and generate an estimated average of 69,000 MWh of energy annually. When staff multiplied its estimate of average generation by the alternative power cost of $31.32/MWh, staff gets a total value of the project's power of $2,161,080 in 2013 dollars. To determine whether the proposed project is economically beneficial, staff subtracted the proposed project's cost from the total value of the alternative power. Therefore, in the first year of operation, the project would cost $3,424,470, or $49.63/MWh, more than the likely alternative cost of power. 97. As licensed herein, the levelized annual cost of operating the proposed project (as modified by staff) would be about $5,589,690 or about $81.01/MWh. The proposed project would generate an estimated average of 69,000 MWh of energy annually. When staff multiplied its estimate of average generation by the alternative power cost of $31.32/MWh, staff gets a total value of the project's power of $2,161,080 in 2013 dollars. To determine whether the proposed project is economically beneficial, staff subtracted the proposed project's cost from the total value of the alternative power. Therefore, in the first year of operation, project power would cost $3,428,610 or $49.69/MWh more than the likely alternative cost of power. 98. In considering public interest factors, the Commission takes into account that hydroelectric projects offer unique operational benefits to the electric utility system (ancillary service benefits). These benefits include the ability to help maintain the stability of a power system, such as by quickly adjusting power output to respond to rapid changes in system load; and to respond rapidly to a major utility system or regional blackout by providing a source of power to help restart fossil-fuel based generating stations and put them back on line. 99. Although staff's analysis shows that the project as licensed herein would cost more to operate than the estimated cost of alternative power, it is the applicant who must decide whether to accept this license and any financial risk that it entails. 100. Although staff does not explicitly account for the effects inflation may have on the future cost of electricity, the fact that hydropower generation is relatively insensitive to inflation compared to fossil-fueled generators is an important economic consideration for power producers and the consumers they serve. This is one reason project economics is only one of the many public interest factors the Commission considers in determining whether or not, and under what conditions, to issue a license. COMPREHENSIVE DEVELOPMENT 101. Sections 4(e) and 10(a)(1) of the FPA require the Commission to give equal consideration to the power development purposes and to the purposes of energy conservation; the protection, mitigation of damage to, and enhancement of fish and wildlife; the protection of recreational opportunities; and the preservation of other aspects of environmental quality. Any license issued shall be such as in the Commission's judgment will be best adapted to a comprehensive plan for improving or developing a waterway or waterways for all beneficial public uses. The decision to license this project, and the terms and conditions included herein, reflect such consideration. 102. The EA for the project contains background information, analysis of effects, and support for related license articles. Based on the record of this proceeding, including the EA and comments thereon, issuing a new license for the Otter Creek Project as described in this order will not constitute a major federal action significantly affecting the quality of the human environment. The project will be safe if operated and maintained in accordance with the requirements of the license. 103. Based on an independent review and evaluation of the Otter Creek Project, recommendations from the resource agencies and other stakeholders, and the no-action alternative, as documented in the EA, the proposed Otter Creek Project, as licensed herein, is selected and found to be best adapted to a comprehensive plan for improving or developing Otter Creek. 104. This alternative was selected because: (1) issuance of a new license will serve to maintain a beneficial and dependable source of electrical energy; (2) the required environmental measures will protect and enhance fish and wildlife resources, water quality, terrestrial resources, recreational resources, and historic properties; and (3) the 22.807 MW of authorized electric capacity comes from a renewable resources that does not contribute to atmospheric pollution. LICENSE TERM 105. Section 15(e) of the FPA provides that any new license issued shall be for a term that the Commission determines to be in the public interest, but not less than 30 years or more than 50 years. The Commission's general policy is to establish 30-year terms for projects with little or no redevelopment, new construction, new capacity, or environmental mitigation and enhancement measures; 40-year terms for projects with a moderate amount of such activities; and 50-year terms for projects with extensive measures. 106. This license requires a moderate amount of new construction and environmental measures, including installation of a new runner (turbine-generator unit 1) and three new turbine-generator units (2 through 4) at the Proctor Development to increase generating capacity from 3.0 to 10.233 MW; installation of two new turbine-generator units (1 and 2) at the Huntington Falls Development to increase generating capacity from 5.5 to 6.725 MW; enhanced minimum flows to improve aesthetics and habitat conditions for aquatic species; and various resource protection plans. Consequently, a 40-year license for the Otter Creek Project is appropriate. The Director orders: (A) This license is issued to Green Mountain Power Corporation (licensee), for a period of 40 years, effective the first day of the month in which this order is issued, to operate and maintain the Otter Creek Hydropower Project. This license is subject to the terms and conditions of the Federal Power Act (FPA), which is incorporated by reference as part of this license, and subject to the regulations the Commission issues under the provisions of the FPA. (B) The project consists of: (1) All lands, to the extent of the licensee's interests in these lands, described in the project description and the project boundary discussion of this order. (2) Project works that include the following three hydropower developments: The Proctor Development consisting of: (1) a 13 foot-high, 128-foot-long masonry, concrete-capped dam with a 3-foot-high inflatable flashboard system; (2) a 95 acre reservoir with a usable storage capacity of 275 acre-feet at a normal maximum water surface elevation of 469.5 feet above mean sea level (msl); (3) a 100-foot-long by 17 foot-high by 45-foot-wide gated-forebay intake structure that contains trashracks with 1-inch clear bar spacing; (4) two penstocks, including (a) a 9-foot-diameter, riveted steel penstock which extends 345 feet from the dam to a surge tank and decreases to 8 feet in diameter for an additional 96 feet beyond a surge tank; and (b) a 7-foot-diameter, 500 foot-long spiral welded steel penstock; (5) a 33-foot by 100-foot concrete and brick masonry powerhouse containing four vertical Francis turbine-generator units rated at 2,245 kW (kilowatts), 1,715 kW, 1,719 kW, and 1,714 kW, respectively, and an attached 28-foot by 48-foot steel structure containing one 2,840-kW vertical Francis turbine-generator unit for a total authorized installed capacity of 10,233 kW; (6) generator leads; (7) three banks of 0.48/2.4-kilovolt (kV) single-phase transformers; (8) a 0.48/46-kV step-up transformer; (9) a 265-foot-long, 14 foot wide bridge located 760 feet downstream of the Proctor dam that is used to access the Proctor powerhouse; (10) a 1,200 foot long access road; and (11) appurtenant facilities. The Beldens Development consisting of: (1) a concrete dam with 2.5 foot-high wooden flashboards, including (a) a 15-foot-high, 56-foot-long dam section (Beldens west dam); and (b) a 24-foot-high, 57-foot-long dam section (Beldens east dam); (2) a 22 acre reservoir with a usable storage capacity of 253 acre-feet at a normal maximum water surface elevation of 283 feet msl; (3) two intakes, including (a) a 20-foot-high by 35 foot-wide intake with 13-foot-high by 26 foot-wide trashracks with bar spacing of 1.125 inches on center; and (b) a 34.5-foot-high by 40-foot-wide intake with 13-foot-high by 40-foot-wide trashracks with 3-inch clear bar spacing; (4) two penstocks, including (a) a 12-foot-diameter steel penstock that bifurcates into two 10-foot-diameter, 30 foot long sections, each leading to a 40-foot by 44-foot concrete and masonry powerhouse containing a 800-kW horizontal Francis turbine-generator unit and a 949-kW horizontal Francis turbine-generator unit; and (b) a 12-foot-diameter, 45 foot-long concrete penstock that leads to a 40 foot by 75-foot concrete powerhouse containing one 4,100-kW horizontal Kaplan turbine-generator unit for a total authorized installed capacity of 5,849 kW; (5) generator leads; (6) a 2.4/46-kV step-up transformer bank; and (7) appurtenant facilities. The Huntington Falls Development consisting of: (1) a 31-foot-high, 187 foot long concrete dam with a 2.5-foot-high inflatable flashboard system; (2) a 23 acre reservoir with a storage capacity of 234 acre-feet at a normal maximum water surface elevation of 217.8 feet msl; (3) two intakes, including (a) a 20-foot-high by 40 foot-wide intake with 13-foot-high by 26-foot-wide trashracks with bar spacing of 1.125 inches on center; and (b) a 38-foot-high by 40-foot-wide intake with 16-foot-high by 30-foot-wide trashracks with 2-inch clear bar spacing; (4) two, 10-foot-diameter, 30 foot-long steel penstocks leading to a 42-foot by 60-foot concrete and masonry powerhouse containing two horizontal Francis turbine-generator units with a combined installed capacity of 2,625 kW; (5) a 12-foot-diameter, 75-foot long concrete penstock leading to a 40 foot by 75-foot concrete powerhouse containing one 4,100-kW horizontal Kaplan turbine-generator unit for a total authorized installed capacity of 6,725 kW; (6) generator leads; (7) a 2.4/46-kV step-up transformer bank; and (8) appurtenant facilities. The project works generally described above are more specifically shown and described by those portions of Exhibits A and F shown below: Exhibit A: The following sections of exhibit A filed on August 1, 2011, April 11, 2012, and April 28, 2014: Exhibit A, filed on August 1, 2011, including Section 2.0, pages A-3 through A-10, entitled "Project Structures;" Section 3.0, page A-11, entitled "Impoundment Data;" Section 4.0, pages A-12 through A-13, entitled "Transmission Lines;" and Section 5.0, page 14, entitled "Additional Equipment." Pages 1 through 5, entitled "Exhibit A," filed on April 11, 2012, except for the subsections entitled "Proctor Unit Upgrades," and "Huntington Falls Unit Upgrades" on pages 3 and 4. Attachment 1, entitled "Proctor Redevelopment-Turbine and Generator Specifications," filed on April 28, 2014, superseding the August 1, 2011 capacities of the turbines and generator units at the Proctor Development. Exhibit F: The following Exhibit F-2 through F-13 drawings filed on August 1, 2011, and Exhibit F-1 drawing filed on March 29, 2013: Click here to view table: http://elibrary.ferc.gov/idmws/common/opennat.asp?fileID=13664778 (3) All of the structures, fixtures, equipment or facilities used to operate or maintain the project, all portable property that may be employed in connection with the project, and all riparian or other rights that are necessary or appropriate in the operation or maintenance of the project. (C) The Exhibits A and F as described above are approved and made part of this license. The revised Exhibit G drawings filed on May 11, 2012, do not conform to Commission regulations and are not approved. (D) This license is subject to the conditions submitted by the Vermont Department of Environmental Conservation under section 401(a)(1) of the Clean Water Act, 33 U.S.C. section 1341(a)(1) (2012), as those conditions are set forth in Appendix A to this order. (E) This license is also subject to the articles set forth in Form L-3 (Oct. 1975), entitled, "Terms and Conditions of License for Constructed Major Project Affecting Navigable Waters of the United States" (see 54 F.P.C. 1792 et seq.), as set forth in this order, and the following additional articles: Article 201. Administrative Annual Charges. The licensee must pay the United States annual charges, effective the first day of the month in which the license is issued, and as determined in accordance with the provisions of the Commission's regulations in effect from time to time, for the purpose of reimbursing the United States for the cost of administration of Part I of the Federal Power Act. The authorized installed capacity for that purpose is as follows: (a) 14,349 kilowatts (kW) based on the authorized and currently existing capacity; and (b) 22,807 kW upon commencement of construction of the additional capacity authorized in this order. The licensee must file a report stating the date of commencement of construction of the additional authorized capacity, within 90 days of such date. Such commencement date will be the effective date for the annual charges under Article 201(b). Article 202. Exhibit F Drawings. Within 45 days of the date of issuance of this license, as directed below, the licensee must file the approved Exhibit F drawings in electronic file format on CDs. Digital images of the approved exhibit drawings must be prepared in electronic format. Prior to preparing each digital image, the FERC Project-Drawing Number (i.e., P-2558-1001 through P-2558-1013) must be shown in the margin below the title block of the approved drawing. Exhibit F drawings must be identified as (CEII) material under 18 CFR section388.113(c). Each drawing must be a separate electronic file, and the file name must include: FERC Project-Drawing Number, FERC Exhibit, Drawing Title, date of this license, and file extension in the following format [P 2558 ####, F-1, Drawing Title, MM-DD-YYYY.TIF]. All digital images of the exhibit drawings shall meet the following format specification: IMAGERY - black & white raster file FILE TYPE - Tagged Image File Format, (TIFF) CCITT Group 4 RESOLUTION - 300 dpi desired, (200 dpi min) DRAWING SIZE FORMAT - 24" x 36" (min), 28" x 40" (max) FILE SIZE - less than 1 MB desired Article 203. Exhibit G Drawings. Within 90 days of license issuance, the licensee must file, for Commission approval, revised Exhibit G drawings enclosing within the project boundary all project works and facilities necessary for operation and maintenance of the project, including the Huntington Falls Development's existing portage trail from the canoe/kayak take-out to the Morgan Horse Farm Road. The licensee must also describe the project purposes that are served by the lands in the current project boundary along the shoreline of the Proctor impoundment, describe any lands not currently serving a project purpose, and remove any lands within the project boundary at the Proctor Development that are not serving a project purpose. The Exhibit G drawings must comply with the Commission's regulations at 18 C.F.R sections 4.39 and 4.41 (2014). Article 204. Amortization Reserve. Pursuant to section 10(d) of the Federal Power Act, a specified reasonable rate of return upon the net investment in the project must be used for determining surplus earnings of the project for the establishment and maintenance of amortization reserves. The licensee must set aside, in a project amortization reserve account at the end of each fiscal year, one-half of the project surplus earnings, if any, in excess of the specified rate of return per annum on the net investment. To the extent that there is a deficiency of project earnings below the specified rate of return per annum for any fiscal year, the licensee must deduct the amount of that deficiency from the amount of any surplus earnings subsequently accumulated, until absorbed. The licensee must set aside one-half of the remaining surplus earnings, if any, cumulatively computed, in the project amortization reserve account. The licensee must maintain the amounts established in the project amortization reserve account until further order of the Commission. The specified reasonable rate of return used in computing amortization reserves must be calculated annually based on current capit TNS 18EstebanLiz-141024-30FurigayJane-4911324 30FurigayJane (c) 2014 Targeted News Service |