[Congressional Record Volume 141, Number 29 (Tuesday, February 14, 1995)]
[Extensions of Remarks]
[Page E341]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                          FLINT CREEK PROJECT

                                 ______


                           HON. PAT WILLIAMS

                               of montana

                    in the house of representatives

                       Tuesday, February 14, 1995
  Mr. WILLIAMS. Mr. Speaker, I am today introducing legislation which 
will enable Granite County, MT to assume operation of the Flint Creek 
hydroelectric project.
  I have worked for more than a year now with folks in Granite County 
in support of their efforts to take over operation of the 1.1 megawatt 
Flint Creek hydroelectric project. The current licensee, the Montana 
Power Co., wants to surrender its license to run the project.
  The company has good reasons to want out. The dam has deteriorated 
some and requires major repairs estimated at $2 million. The Federal 
Energy Regulatory Commission has more than tripled the annual Federal 
charges which must be paid when a reservoir occupies federally owned 
lands. And the drought conditions which have prevailed over the past 
decade have greatly reduced power revenue from the project.
  The simple fact is that FERC has priced this facility out of the 
market; in fact, Flint Creek Dam has the highest rental cost per 
kilowatt hour of any project surveyed by the Energy Information Agency.
  My bill makes it possible for the citizens of Granite County to 
operate the dam and use the revenues for public purposes as the county 
government sees fit.
  Granite County filed an application with FERC in 1991 to run the 
project. The County has worked with recreationists, State and Federal 
wildlife and land managers, and others to develop an operating plan 
which has broad support. They've completed an environmental impact 
statement on a proposed operating plan.
  The county's requests to FERC for relief from the high annual charges 
have been denied. Without action by the Congress, it seems certain that 
the project will be abandoned. In that event the project will generate 
zero revenues to the Federal Government and ultimately will become an 
albatross around the neck of its owner. Passage of my bill will assure 
both continuing power production, Federal revenues, and local revenues 
in a part of Montana that seriously needs the boost.
  Folks in Granite County understand that Congress is unlikely to 
approve a full waiver of Federal fees, as they originally sought. I am 
submitting, with the support of the county, a moderate proposal which 
provides enough short term relief to assure that the repairs are made, 
while instituting a more realistic annual fee of $20,000 per year 
beginning in year six following the assumption of management duties.




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