In a move that has disappointed many, FERC has rejected a request to predict and evaluate the changes in project effects that will occur as a result of climate change that is likely to impact the local patterns of precipitation, runoff, evapo-transpiration and other meteorological patterns in two watershed in California.
Through a letter sent last week, the Department of Interior (DOI) has requested FERC for a rehearing of the decision to issue an amended license that allows for operation of hydrokinetic project on the Mississippi river in Hastings, Minnesota.
This report is intended to help Fish and Wildlife Service (FWS) staff become more effective participants in the hydropower relicensing process through a better understanding of the economic analysis used to evaluate hydropower projects. Specifically, the report seeks to accomplish the following goals:
- Explain the Federal Energy Regulatory Commission's (FERC's) current approach to the economic analysis of relicensing alternatives;
- Review potential methodological refinements and why they are important; and
- Introduce a variety of approaches for assessing non-power values, helping FWS staff recognize when more advanced analyses are applicable.
The purpose of this document is not to provide a step-by-step guide for the conduct of primary economic analysis, i.e., the reader is not expected to become an expert in the implementation of the analyses described here. Rather, the document seeks to attune non-experts to the role of economics in relicensing and the diversity of techniques available.
Available online athttps://www.fws.gov/policy/hydroindex.htm