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HomeMy WebLinkAboutMN-HDPC-1989-01-17 MINUTES Hydropower Commission January 17 , 1989 Present : Daniel Hoffman, Edward Brothers , Elizabeth Mulholland , Helen Jones , Cathy Emilian, Therese Araneo, Martin Sampson, Alex Skutt , Michael Sprague , Ellen Harrison; seven members of the public . The meeting was called to order to 7 : 40 p .m. by D. Hoffman, Commission Chairperson. Minutes of the previous meeting were reviewed and adopted with revisions . Discussion: Sixty Foot Dam - Common Council , at its previous meeting , had supported the proposal to surrender the license held for the Sixty Foot Dam . A petition to surrender had been written and submitted to FERC by Helen Jones . It was noted that if the City were successful in obtaining an exemption of the Ithaca Falls from development , efforts would be made to extend that same protection to Sixty Foot Dam. Van Natta Dam - There was discussion of the referendum requirement and the urgency of moving ahead before the construction deadline . Helen Jones will draft an RFP to be distributed to developers . Hydro projects of 2 MW or less are still eligible to negotiate an energy plus capacity credit contract with NXSEG . Stipulations which might be made with respect to requested development proposals include project exterior appearance , possible use of upper pump house building by other City groups ( such as Circle Greenway) and restoration of the lower building which is currently a hazard. Questions were raised as to whether the pump station complex could be taken by a developer through eminent domain if the City ' s terms for conveyance were unacceptable. Ithaca Falls - FERC has granted the City ' s request for exemption from the Emergency Action Plan filing requirement . However , a report certifying our eligibility to retain this status must be filed each year . Veitch Associates have been hired to develop the fish screen, fish passage and stream flow gauging plans required under the license. To date they have undertaken a site inspection and initiated agency consultation. They also have an alternative design plan for the plant they wish to Hydropower Commission Minutes — 1/ 17/89 —2— present to the Commission, which they believe will remove many of the environmental and aesthetic concerns associated with the project . The consultants believe they will be finished with their work within a month and will make a presentation at the February Hydro Commission meeting . An extension of the original deadline for filing the report has been requested of F .E . R. C . The letter received from the U. S .G . S . office regarding placement of a gauging station was reviewed. U. S . G. S . indicated they could not install a station in the by—pass segment of the stream and suggested placing it below the Lake Street bridge . The board of Public Works should be informed of any plans for instrumentation they will be responsible to maintain. Michael Sprague , Commission liaison to the BPW, agreed to report on these plans at their next meeting . Power Sale Negotiations — NYSEG ' s request to end contract negotiations with small scale power producers was granted by the PSC . Any party desiring to sell power to NYSEG will have to follow the bidding procedure . NYSEG will be requesting proposals for a total of 100 MW of new capacity to be brought on line by 1994. The City would be competing with other small producers to provide pieces of that block . The request is for "peaking" power- Proposals from outside New York State may also be considered. The City could also place a bid with other New York State utilities . However , we would have to pay NYSEG to wheel that power to them. Each utility has its own individual bidding plan. It appears the City might not fare well under bidding . The possibility of reducing the size the Ithaca Falls plant to 2 MW was discussed . Doing this would require a new engineering design. It was not clear whether a new application for license would also be required. Using the power for municipal energy needs was viewed as possibly the most plausible alternative . City facilities within a mile of the site would be exempt from the NYSEG franchise restrictions . Candidate facilities for using the power include the Sewage Treatment Plant and BPW barns . Estimates for usage by those facilities , and requirements for switching and interface equipment are not yet available . It is not yet known what the cost of running our own lines will be . If this proves prohibitive we might pay NYSEG to wheel the power across their lines for a fee . Either alternative is subject to P . S . C . review. Demand charges to Hydropower Commission Minutes - 1/ 17 /89 -3- be paid by the City for back up power will be a major economic subject in evaluating the viability of using the energy ourselves . Private Developer Interest - Synergics called last week expressing strong interest in the Ithaca Falls site and in a possible joint venture with the City . They are not intimidated by the bidding procedure . They indicated that there are ways to structure a joint agreement which would not jeopardize the City ' s municipal preference. The terms would have to be worked out in accordance with FERC ' s rules . Helen has requested copies of similar agreements they have entered into . Site Protection - A member of the public felt the City had not adequately investigated this option in the past and should examine it more carefully . It was proposed and passed that in light of the changing economic picture for sale of hydropower , Common Council be asked to request that the City Attorney investigate legal options for long-term protection of the Ithaca Falls and Sixty Foot Dam sites from development . A motion was also passed to ask that Council request Matt McHugh to report on legislative options for protecting these sites from hydro development . Discussions with Cornell - Helen Jones has written a memo to the Mayor asking that he open discussions with Cornell regarding possible purchase of the power or joint venture with the City. Alderman Nichols indicated that Council ' s resolution requesting specific concessions from Cornell had been withdrawn because the Mayor had indicated he was already involved in negotiations with Cornell and would report on them . A motion was passed that Dan Hoffman, as Commission Chairperson, request a report on the status of these negotiations from the Mayor . Sale of Power to Other Utilities - D. Hoffman and others felt that the City should contact other New York State utilities as possible buyers of the energy . Fisheries Update - The updated fisheries study prepared by Ichthyological Associates had been revised . Ed Brothers had reviewed the changes and found them acceptable . Copies of the report will be sent out to all Commission members . Next Meeting - Tuesday , February 21 , 1989 , 7 : 30 p .m. , Common Council Chambers . Adjournment - 9 : 45 p .m. O-HJ-Minutes . J17