FERC won't charge hydro licensees for land subject to power site reservation
Originally published April 2, 2013
The Federal Energy Regulatory Commission granted a request by a group of hydro licensees and issued a declaratory order March 21 stating that it will not assess annual land use charges for lands owned by the licensees but still subject to a power site reservation under Section 24 of the Federal Power Act. The commission said it saw nothing unlawful in its prior practice of assessing annual charges for lands subject to a power reservation, but agreed with the argument "that licensees have given valuable consideration to obtain fee ownership of federal lands, and have done so for the development of hydropower, the very purpose for which the power site reservation was created."
Licensees whose projects occupy federal lands subject to a power site reservation can submit information on the extent of those lands at any time, the commission said, adding that they may wish to consult with FERC staff to ensure that they provide the appropriate material.
The request for a declaratory order was filed by: Alaska Electric Light and Power Co.; Alaska Energy Authority; City and Borough of Sitka; Public Utility District No. 1 of Chelan County, Wash.; Public Utility District No. 2 of Grant County, Wash.; Sabine Water Authority of Texas; Sabine River Authority of Louisiana; and Southeast Alaska Power Agency.
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