Pacific Power - 11/25/13
PacifiCorp looking to divest its Bend Hydroelectric Project
Discussions to preserve the future vision of Mirror Pond underway
BEND, Ore. -- PacifiCorp has determined that it would not be cost-effective for its customers to make the investments needed to continue long-term operations at the company's Bend hydroelectric generating project.
The decision follows a thorough engineering inspection of the project dam after a leak in the dam developed in early October, the third such leak in approximately five years, which also prompted a broader analysis of the facility.
"First and foremost, the inspection confirmed what we expected; the dam remains safe and is in overall good condition for a 100-year old facility, but further investment would be required for the hydro project to operate long term," said Mark Tallman, PacifiCorp's vice president for renewable resources.
"After a century of producing clean, emission-free and affordable power for customers, it's time to divest or retire our Bend hydroelectric plant," Tallman said. "It simply isn't cost-effective or in the best interests of all our customers throughout six western states for PacifiCorp to rebuild the facility and generate power to serve current and future generations of customers."
The project is located near the Newport Avenue Bridge. In addition to diverting water for the company's hydroelectric project, the dam creates Mirror Pond on a section of the Deschutes River in downtown Bend. The Bend community has been engaged in extensive public discussions of its desires and priorities for the future of Mirror Pond.
"We've known and have been candid with the community that the facility was reaching the end of its useful life as a generating facility for PacifiCorp's customers. That time is now here, accelerated by the recent new leak. This converges with public conversations and comparison of options the public has participated in," said Pat Egan, PacifiCorp's vice president for customer and community affairs.
The company will pursue discussions with the Bend Parks and Recreation District and the City of Bend to determine if an agreement can be reached that places the dam under local control in a way that PacifiCorp can also demonstrate to regulators that the outcome is in the best interest of PacifiCorp's customers.
"The company wants to be supportive of community efforts to preserve its vision for the future of Mirror Pond as long as PacifiCorp can also meet its regulatory obligations," said Egan. "Among the various options we must responsibly explore, we are hopeful an agreement can be reached that allows this to happen and also protects the interest of our rate-paying customers in Bend and throughout our multi-state service area."