On Feb. 22, 2010, KC Hydro, a collaboration of Davis Hydro LLC and Sackheim Consulting, filed a response the Federal Energy Regulatory Commission’s (FERC) notice that it intends to perform a complete environmental impact statement (EIS) on Pacific Gas and Electric Company’s License Surrender Application for its Kilarc-Cow Creek Hydroelectric Project.  In its response, KC Hydro suggests that within the EIS the FERC consider five alternatives: 1) a no action alternative; 2) the proposed action—decommissioning the two hydroelectric plants; 3) the Tetrick Settlement Agreement; 4) the Davis Hydro Evaluation Detour alternative; and 5) the Davis Hydro Double-Effect alternative.

     Under the Davis Hydro Evaluation Detour, the FERC would agree to suspend the license surrender process so that PG&E could lease the Kilarc facilities to Davis Hydro LLC which would operate and maintain them, using a portion of the profits from the sale of power to establish experimental steelhead spawning beds in the main canal.  After a specified amount of time, the experiment would be evaluated, and if it is not successful, PG&E could complete its license surrender and decommission the facilities.  If the experiment is successful, KC Hydro could presumably purchase the facilities from PG&E and continue to operate them.

     Under the Davis Hydro Double-Effect alternative, the above-described lease and experiment would go forward, and in addition, some of the money that would have been spent on decommissioning would go toward off-site mitigation projects that have already been approved by the resource agencies and have a proven scientific basis to benefit anadromous fish populations, in contrast to the demolition of the Kilarc facilities upon which no fish benefit studies have been done.