Pu66ic Service Commission of West Virginia

Pu66ic Service Commission Of West Virginia

201 BroobSStreet, P. 0. CaoxSl2 Phone: (304) 340-0300 Charleston, wv 25323 Fm(304) 340-0325 i May 14,2014

I Electronic Service Only Michael Storch, Executive Vice President I Gauley River Power Partners, LP c/o Enel Green Power North America, Inc. One Tech Drive, Ste. 220 Andover, MA 0 18 10

RE: Case No. 14-0286-E-P Gauley River Power Partners, L.P

Dear Mr. Storcli:

Staff Memorandum issued today was served via email on the above-listed parties. If you wish to respond to Staff Memorandum you may do so in writing, within 10 days, unless directed otherwise, of this date. You will not receive a copy of the Staff Memorandum by regular mail.

Your failure to respond in writing to the utility’s answer, Staffs recommendations, or other documents may result in a decision in your case based on your original filing and the other documents in the case file, without further hearing or notice.

When you provide an email address you will automatically receive electronic docket notifications as documents are filed in this proceeding. The email notifications allow recipients to view a document within an hour from the time the filing is processed.

If you have not done so, you are requested to file the Electronic Mail Agreement, previously mail to you, which allows the Coinmission to serve all orders issued in this matter via electronic docket notification.

Please note - the Public Service Commission does not accept electronic filings. Therefore, if you wish to respond to the Staff Memorandum you must do so in writing submitted to the Executive Secretary’s Office at the above address.

Sincerely,

Ingrid Fkrell, Director Executive Secretary Division

IFlcg Attached - Memo FINAL JOINT STAFF MEMORANDUM

TO: INGRID FERRELL DATE: May 14,2014 Executive Secretary

FROM: JOHN AUVILLE Staff Attorney

RE: CASE NO. 14-0286-E-P GAULEY RIVER POWER PARTNERS, L.P.

On February 20, 2014, Gauley River Power Partner, L.P. (Gauley River) filed a petition for certification of Gauley River’s run of the river hydroelectric generating facility (Facility) as a Qualified Energy Resource pursuant to the Rules Governing Alternative and Renewable Energy Portfolio Standard. The Facility is located on the Gauley River near Summersville, WV.

Wayne Perdue, Technical Analyst in the Commission’s Engineering Division, submitted the attached memorandum on May 14, 2014. Mr. Perdue states the facility meets the standards to qualify as a “Qualified Energy Resource.” He also believes the facility qualifies as a run-of-the-river hydroelectric facility, making it a “Renewable Energy Resource” entitled to two credits for every megawatt-hour of generation.

Legal Staff has reviewed the above mentioned memorandum and agrees with the contents therein, The Gauley River facility should be certified as a “Qualified Energy Resource” that uses a “Renewable Energy Resource” that entitles the facility to two Credits for every megawatt-hour of generation.

JWs Attachment I Engineering Division Final Memorandum To: John Auville May 12,2014 Staff Attorney

From: Wayne M. Perdue (,J $' Technical Analyst

Re: Case No. 14-0286-E-P Gauley River Power Partners, L.P.,

Petition for Certification of Petition for Certification of Certain Facilities as Qualified Energy Resource pursuant to the Rules Governing Alternative and Renewable Energy Portfolio Standard, 150 C.S.R. 34

Updated Petition In the Engineering Division's Initial Technical Memorandum, filed on March 18, 2014, Staff provided a general description of the Project. However, Staff found that the Petition contained the most of the necessary information required for certification as a "Qualified Energy Resource" but Staff believed the Petition would further enhanced/ complete with additional information regarding the revenue quality meter and a better justification for being classified as a run-of-river hydroelectric facility. On May 5, 2014, the Petitioner filed a response to Staff's First Data Request that contained the remainder of the information required for the Petition. Data Response No. 2 states that the Project is a renewable energy facility but is not considered an Energy Efficiencymemand-Side Energy Initiative project as indicated in the Petition, Information such as pictures, manufacturers specifications and other evidence is presented in Data Response No. 4 that confirms the project's revenue meter meets the PJM GATS definition of a revenue-quality meter and complies with the ANSI C-12 Standards for revenue quality meters. Data Response No. 3 addresses the matter concerning run-of-the-river hydroelectric facilities by providing information from the Low Impact Hydroelectric Institute (LIHI) about the Project's LIHI's current status. The project was recertified by the LIHI on November 25, 2009 (Certificate #17).' Attachment No. 1 summarizes the Project and Project's certificate. In general, Attachment No. 1 provides evidence that the Project is eligible for green power certification programs and is considered a run-of-the-river hydroelectric facility (See Pages 1 and 2 of Attachment No. 1). Engineering Division Final Memorandum

Conclusion The Engineering Division believes the Petition meets the requirements for certification as a Qualified Energy Resource as a renewable energy resource run-of-the- river hydroelectric generating facility pursuant to Rule 2.22.d of the Commission’s Rules Governing Alternative and Renewable Energy Portfolio Standard, 150 C.S.R. 34 and is entitled to receive two (2) renewable energy credits for each Megawatt of energy produced, WMP:s

Attachment No. 1 I http://www.lowimpacthydro.org/lihi-certificate-17-summersv~~~e-pro~ect-gau~ey-r~ver-west-v~rg~n~a-ferc- 108 13.html Attachment 1

What's New? j Contact Us I_--~ I

l.f.rnc What's New? Donate About Us Contact us Staff, Governing; Board and Advisory Panel Members Project Location Map Ccrtificati on Application Pro main Pending; Anplications $ cv.tIt"!ctl FilCilltlC\

LIHI Certificate #17 = Surnmersville Project, Gauley River, West Virginia (FERC# 10813) At their March 4, 2010 meeting the LIHI Governing Board recertified the Summersville Project.

"green" power certification programs.

~ Page 1 of5 Monday, May 12,2014 ... http://www.lowimpacthydro.org/lihi-certificate-17-summersville-pro~ect-gauley-river-west-virg~n~a-ferc- 1 08 1 3.hml The Federal Energy Regulatory Commission (FERC) issued a 50-year license to the City on September 25, 1992 to develop, finance, construct, own, and operate the 80-megawatte (MW) project. This project (FERC 108 13), as amended and approved by FERC, is the one being considered for low impact hydropower certification. The project reservoir is Summersville Lake, which the ACOE manages for flood control, low- .* flow augmentation, and recreation.Prolectrelydcp,m$ent upon the ACOEs' operation of the *. .. the hvdro Drcgect is managed as a run --of the - river facility,

The Project was certified by LIHI on November 10,2004 for a five-year term. In the Applicant's filing for re- certification they state that nothing about the project has changed that would affect the certifiability of the Summersville Project.

Site Characteristics

The project and the surrounding area are described in FERC's 1996 Final Environmental Assessment (EA). Additional detail is provided in the 2002 Operating Plan. The following descriptions are primarily from those documents.

The project is located on the Gauley River in Nicholas and Fayette Counties, West Virginia, between Summersville dam and the upper boundary of the Gauley River National Recreation Area (GRNRA). The terrain is rugged and characterized by sharp ridges and narrow v-shaped valleys. The Gauley River does not have a floodplain in the project area.

As operated by the ACOE, the dam regulates water levels in the reservoir and downstream flows. Changes in discharge rate are scheduled not to exceed 1,500 cubic feet per second (cfs) per hour or cause changes in water surface elevations downstream of the dam greater than 1 foot per hour. A minimum flow of 100 cfs is provided at all times, The ACOE is required to provide 20 days of whitewater rafting flows each year beginning the first weekend after Labor Day.

Summersville Lake has a surface area that varies seasonally between 928 acres and 4,280 acres. The minimum (winter) pool of 4,280 acres has a surface elevation of 1,710 feet. The seasonal (summer) pool of 2~790acres has a surface elevation of 1,652 feet. In the fall, the ACOE lowers the reservoir level in anticipation of heavy snows and rain in the winter and spring months. Recreational boaters raft and kayak down the river, especially during the fall draw down period.

1 Project Description

1 Page2 of5 Monday, May 12,2014 .. , http://www,lowimpacthydro.org/lihi-certificate-17-summersv~lle-pro~ect-gau~ey-r~ver-west-v~rg~n~a-ferc- 108 1 3.html The project is located on land owned by the ACOE at their Summersville dam. Project structures include a powerhouse with two hydroelectric turbine-generators, a substation, and a transmission line. The powerhouse and substation are located on the right riverbank, downstream of the dam. The transmission line extends across the downstream side of the dam. The project's powerhouse connects to the ACOE's discharge tunnel via a penstock.

The project reservoir is Summersville Lake, which the ACOE manages for flood control, low-flow augmentation, and recreation. The dam was authorized by Congress in 1938. It was originally constructed in conjunction with two other dams to control flood waters in the Kanawha basin, a 12,300-square-mile area located in three states. The dams operated as a system, control flows into the Ohio River. Summersville dam was built in 1966 at a cost of $48 million (1966 dollars). It is an earthen structure 393 feet high and 2,280 feet long. The ACOE operates the dam and controls the rate of water released through the dam. The hydroelectric project is, in effect, run-of-the-river - generating power only with the flows that the ACOE releases. Hydroelectric project operations are coordinated with the ACOE on a day-to-day and hour-by-hour basis. When water release rates are sufficient, the project generates electricity.

Water is drawn out of the reservoir through an intake structure that leads to a 29-foot-diameter outlet tunnel, which splits into four steel tunnels each leading to a butterfly valve and a Howell-Bunger valve (HBV). The HBVs aerate the water in its controlled release to the Gauley River. Three of the HBVs are located in the ACOE's valvehouse sited directly downstream of the reservoir and the dam. A 17-foot diameter steel penstock connects the #3 butterfly value to the #3 HBV relocated to the project powerhouse approximately 150 feet downstream of the ACOE's valvehouse. The powerhouse also contains two Francis hydraulic turbines with a total installed capacity of 80 MW. Water is discharged into a tailrace. A step-up transformer is located adjacent to the powerhouse and the 69 kV transmission line connects the project to the APCo facilities via an interconnection point approximately ten miles away.

Flow is discharged through the project as directed by the ACOE per License Articles 309 and 402 and the Operating Plan. The project is reviewed annually and, over time, has been refined to operate at water flows between 600 and 4,300 cfs. Flows within this range are released through one or both of the turbines. Flows below 600 cfs are controlled by the ACOE and released through one or more of the HBVs, as are flows in excess of the (up to) 4,300 cfs released through the turbines. The operating mechanisms for the turbines are controlled automatically, with operations monitored remotely. The controls ensure that flows in the river are automatically maintained in the event of an unscheduled turbine shut down. The ACOE's operational control of the dam and the flows released from the dam are not altered or adversely impacted by implementation and operation of the hydroelectric project,

Public Comments

We encourage public comments on this application. Specifically, we are interested in knowing whether YOU think the Summersville Project meets our LIHI criteria. Review the program and criteria in greater detail and then review the Summersville Project's application. Comments that are directly tied to specific LIHI criteria (flows, water quality, fish passage, etc) will be most helpful, but all comments will be considered.

Comments may be submitted to the Institute by e-mail at [email protected] with 'I Summersville Project comments" in the subject line; by fax at (206) - 984-3086; or by mail addressed to LIHI, 34 Providence Street, Portland, ME, 04103. Comments must be received at the Institute on or before 5 pm Eastern time on January 25,20 10 to be considered. A11 comments will be posted to the web site and the applicant will have an opportunity to respond, Any response will also be posted. ***

At their April 28, 2005 meeting The Low Impact Hydropower Institute (LIHI) certified the Summersville Hydroelectric Project as low impact.

Page 3 of 5 Monday, May 12,2014 , .. http://www. lowimpacthydro,org/lihi-certificate-17-suminersv~~~e-proJect-gau~ey-r~ver-west-v~rg~n~a-ferc- 108 1 3 .hml

The project is located on the Gauley River in Nicholas and Fayette Counties, West Virginia, between Summersville dam and the upper boundary of the Gauley River National Recreation Area. The 80 megawatt facility is owned and operated by Gauley River Partners Inc., and licensed by the Federal Energy Regulatory Commission (FERC) as Project number 10813.

The Summersville Project is located on land owned by the Army Corps of Engineers (ACOE) at their Summersville dam. Project structures include a powerhouse with two hydroelectric turbine-generators, a substation, and a transmission line. The powerhouse and substation are located on the right riverbank, downstream of the dam. The transmission line extends across the downstream side of the dam. The project's powerhouse connects to the ACOE's discharge tunnel via a penstock.

The ACOE operates the dam and controls the rate of water released through the dam. The hydroelectric project is, in effect, run-of-the-river - generating power only with the flows that the ACOE releases. Hydroelectric project operations are coordinated with the ACOE on a day-to-day and hour-by-hour basis. When water release rates are sufficient, the project generates electricity.

The Summersville Project meets LTHT's eight environmentally rigorous Low Impact criteria addressing river flows, water quality, fish passage and protection, watershed health, endangered species protection, cultural resources, recreation use and access, and whether or not the dam itself has been recommended for removal. Summersville successfblly completed LIHI's application process, which includes a public comment period, review by an independent technical consultant, consultations with state and federal natural resource agencies, and evaluation by the LIHI Governing Board, including leaders in the river conservation and renewable energy fields. The Board's vote to certify the Summersville Project was six in favor, none opposed, and one abstention.

SUMMARY

Facility location: Gauley River, West Virginia

Installed capacity: 80 MW

Average annual generation: 206,000 megawatt hours

FERC license: No. 108 13 was issued in 1992 with subsequent amendments

Applicant: Gauley River Partners, Inc.

Applicant contact: Beth Harris (864) 846-0042 ext. 100

Date project certified: April 28,2005 (effective November 10,2004)

APPLICATION FOR CERTIFICATION

On November 10, 2004, the Gauley River Partners, Inc. submitted an application for certification of its Summersville Hydroelectric Project. The project is located on land owned by the US Army Corp of Engineers (ACOE) at their Summersville Dam on the GauleyRiver in Nicholas County, West Virginia, five miles south of the City of Summersville.

Page 4 of 5 Monday, May 12,2014 , , , http://www,lowimpacthydro.org/lihi-certificate-1 7-suminersville-pro~ect-gauley-river-west-v~rginia-ferc- 108 13 ,html conjunction with two other dams to control flood waters in the Kanawha basin, a 12,300-square-mile area located in three states. The dams operated as a system, control flows into the Ohio River.

The dam was built in 1966 at a cost of $48 million (1966 dollars). It is an earthen structure 393 feet high and 2,280 feet long.