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Friday, February 19, 2010

FERC extends own deadline on rehearing decision

"If they go back and they read through the record, I'm afraid we're going to get the same answers we got before." Russ Johnson - TCRC chairman

The Federal Energy Regulatory Commission has extended its own deadline to decide whether to grant a rehearing over Appalachian Power's new license.

The utility was issued a new license to operate the Smith Mountain and Leesville dams on Dec. 15. A few days earlier, the Tri-County Relicensing Committee filed an offer of settlement with FERC, requesting the commission reconsider its recommendations on what Appalachian's responsibilities will be over the course of its 30-year license.

TCRC's recommendations included extending Appalachian's duties in handling debris, invasive weeds, sediment and erosion. The offer also requested a settlement conference or rehearing to resolve disagreements on how to handle these and other lake issues.

FERC initially responded to TCRC's offer in the order issuing a new license on Dec. 15, saying a delay in issuing the license was not warranted because TCRC was reiterating arguments it had made earlier in the process and did not offer new evidence.

According to a Feb. 11 letter from FERC, if the commission had not responded to the Dec. 9 rehearing request within 30 days, it "would be deemed denied." However, the commission is leaving it open as to when it may respond.

"What can happen is they can come back with a rehearing order, or an order denying the rehearing, later this afternoon or two years from now," said Frank Simms, Appalachian's hydro support manager. "They're just giving themselves more time to decide."

He said FERC may respond in one of three ways: it could deny a rehearing, agree with TCRC's offer and alter the license to integrate all their recommendations, or agree with and integrate portions of TCRC's offer.

Simms said depending on FERC's response, Appalachian or TCRC has the right to contest, which would take the case into appeals court.

Russ Johnson, chairman of TCRC, said he's pleased that the committee may have another chance to voice concerns and recommendations.

"A little bit of verbal back-and-forth, I think, would help," he said.

Johnson said if a rehearing is not granted, he's afraid new information provided by TCRC in the settlement offer will be lost amid already-stated information.

"If they go back and they read through the record, I'm afraid we're going to get the same answers we got before," said Johnson. "If we do it verbally, we can point out the new information."

Johnson said he understands that a different FERC group would hear the case if a rehearing is allowed, which makes him optimistic. Until TCRC hears one way or the other, his group is on hold, said Johnson.

"Now, we are going to sit and wait," he said.