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<P class=MsoNormal><SPAN class=articletitle1><B><FONT face=Tahoma color=black
size=4><SPAN style="FONT-SIZE: 14pt; FONT-FAMILY: Tahoma">KLAMATH
ISSUES:<o:p></o:p></SPAN></FONT></B></SPAN></P>
<P class=MsoNormal><SPAN class=articletitle1><B><FONT face=Tahoma color=black
size=4><SPAN style="FONT-SIZE: 14pt; FONT-FAMILY: Tahoma">Klamath power ruling
thumps irrigators<o:p></o:p></SPAN></FONT></B></SPAN></P>
<P class=MsoNormal><?xml:namespace prefix = st1 ns =
"urn:schemas-microsoft-com:office:smarttags" /><st1:City w:st="on"><st1:place
w:st="on"><SPAN class=articletitle1><B><FONT face=Tahoma color=black
size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: Tahoma">Eureka</SPAN></FONT></B></SPAN></st1:place></st1:City><SPAN
class=articletitle1><B><FONT face=Tahoma color=black size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: Tahoma"> Times-Standard –
1/27/06<o:p></o:p></SPAN></FONT></B></SPAN></P>
<P class=MsoNormal><SPAN class=articletitle1><B><FONT face=Tahoma color=black
size=4><SPAN style="FONT-SIZE: 14pt; FONT-FAMILY: Tahoma">BY John Driscoll,
staff writer</SPAN></FONT></B></SPAN><SPAN class=articletitle1><B><FONT
face="Times New Roman" color=black size=4><SPAN
style="FONT-WEIGHT: normal; FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p></o:p></SPAN></FONT></B></SPAN></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">Federal
energy regulators on Thursday decided that irrigators that use Klamath River
water on the central California-Oregon border should not be insulated from
anticipated electricity spikes, which could multiply farmers' pumping costs 10
to 20 times. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">Dam owner
PacifiCorp since 1956 has provided power to the U.S. Bureau of Reclamation's
Klamath Project for a fraction of what most irrigators pay. The contract is up
in April, and that frees PacifiCorp from any obligation to keep providing cheap
electricity, the Federal Energy Regulatory Commission decided.
<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">Irrigators
have claimed that the federal Klamath River Compact demands that <st1:place
w:st="on">Klamath River</st1:place> water provides the lowest possible rates for
irrigators. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">Tribes
have argued that prolonging the cheap power terms would violate the government's
trust responsibility by keeping up overuse of water, threatening <st1:place
w:st="on">Klamath River</st1:place> salmon. Environmental groups also pushed the
commission to allow higher rates. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">PacifiCorp
operates six hydroelectric dams on the <st1:place w:st="on">Klamath
River</st1:place>, and is asking FERC for a new 50-year license. It also
operates Link River Dam, which dams <st1:place w:st="on">Upper Klamath
Lake</st1:place> and regulates the amount of water sent downstream for power
generation. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">Bureau of
Reclamation pumps move water around its 200,000-acre project, and pumps at
various districts send it on to canals and other infrastructure from which
farmers pump water onto hay, potato and grain fields. That tiered process
compounds costs. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">Greg
Addington, executive director of the Klamath Water Users Association, said he's
not aware of any other project with similar power needs, and believes PacifiCorp
would not have agreed to the previous 1956 contract if the utility didn't make
money. Klamath Irrigation Project customers will be charged the same tariff as
any other irrigator, more than 10 times what they are currently charged. An
<st1:place w:st="on"><st1:State w:st="on">Oregon</st1:State></st1:place> bill
passed last year allows for the increases over seven years.
<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">”Why would
they ever have come up with this deal if there wasn't some benefit to them?”
Addington said. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">The U.S.
Department of the Interior -- under which falls the Bureau of Reclamation -- has
requested a rehearing from the commission, and will file its arguments within 30
days. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">Reclamation
spokesman Jeff McCracken said that if the FERC decision stands, it would mean a
big financial hit to irrigators. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">”We have
water issues and now we're having dollar issues with electricity,” McCracken
said. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">The FERC
ruling also seems to reflect the increased stress on the Klamath's resources.
The original 1917 contract signed by the California Oregon Power Co. agreed to
keep <st1:place w:st="on">Upper Klamath Lake</st1:place> at a certain level for
irrigation, provide water for irrigation and provide power for pumping, it
reads.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"> Water
leftover was sent downstream to generate power for other customers.
<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">”There has
been a lot that's happened over this period of time,” said PacifiCorp
representative Dave Kvamme. “We think that the ruling verifies our view of the
facts.” <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">Today, the
U.S. Fish and Wildlife Service and the National Marine Fisheries Service demand
that <st1:place w:st="on">Upper Klamath Lake</st1:place> be kept full enough to
protect endangered sucker fish, and that flows sent to the lower river are
adequate for threatened coho salmon. In recent years, the government has paid
farmers millions to stop irrigating or switch to using groundwater to free up
extra water for salmon. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">Water
quality, fish diseases and the cut of historic spawning grounds by Klamath dams
are all being weighed in the larger hydroelectric licensing procedure or by
fisheries agencies. PacifiCorp, several American Indian tribes, environmental
groups, irrigators and governments are also involved in parallel settlement
talks. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" color=black size=4><SPAN
style="FONT-SIZE: 14pt; COLOR: black; FONT-FAMILY: 'Times New Roman'">Federal
fisheries officials have indicated that they will demand fish passage past the
dams, which could cost more than $100 million. The exact recommendations are
expected some time in February. #<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><SPAN class=articletitle1><B><FONT face="Times New Roman"
color=black size=4><SPAN
style="FONT-WEIGHT: normal; FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><A
href="http://times-standard.com/fastsearchresults/ci_3443782">http://times-standard.com/fastsearchresults/ci_3443782</A><o:p></o:p></SPAN></FONT></B></SPAN></P>
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