1. Harnessing the Energy: Bringing Together Your Hydropower Allies

2. Overview: A little history A little history Common interests Common interests Use of PMA receipts to fund Corps hydro O&M Use of PMA receipts to fund Corps hydro O&M

3. Some hydro history… Waterpower – from mechanical energy to electrical energy Waterpower – from mechanical energy to electrical energy Rivers & Harbors Acts of 1890 & 1899 Rivers & Harbors Acts of 1890 & 1899 –Corps’ first involvement with hydro General Dam Act of 1906 General Dam Act of 1906 –Hydro owners to provide power for locks and dams Federal Water Power Act of 1920 Federal Water Power Act of 1920 –Corps advises FPC on hydro licenses

4. Corps starts generating… Installs powerhouse substructure at L&D 1 on upper Mississippi Installs powerhouse substructure at L&D 1 on upper Mississippi Muscle Shoals – power plant, locks on Tennessee River Muscle Shoals – power plant, locks on Tennessee River New Deal dams New Deal dams –Bonneville, Fort Peck and Passamaquoddy Tidal Power Project

5. Enter the PMAs… Flood Control Act of 1944 Flood Control Act of 1944 –Corps to build, own & operate hydro plants –PMAs to take power at switchyard and distribute –PMAs to return all costs assigned to power construction, operation, maintenance and replacement

6. Nonfederal hydro… Around 1980, emphasis changed to encourage nonfederal hydro development at Corps projects Around 1980, emphasis changed to encourage nonfederal hydro development at Corps projects –FERC-licensed projects –Nonfederal funding for Corps hydro projects –More than 40 projects completed

7. Gee whiz! B.H.A.N.s! Corps is largest owner/operator of hydro in U.S. Corps is largest owner/operator of hydro in U.S. –75 powerplants –20,720 MW installed capacity –100 billion kw/year energy –About one-fourth of nation’s total hydro output –Nation’s 5 th largest electric supplier

8. Hydro & navigation: Partners with the rivers Hydro projects on navigation systems Hydro projects on navigation systems –8 on the Arkansas navigation system Upstream and tributary hydro projects Upstream and tributary hydro projects –5 on Arkansas River system –5 on White River system –Denison Dam on Red River system

9. Hydro & Navigation: Mutual Interests Competing Uses Competing Uses Environmental issues Environmental issues Funding to maintain the infrastructure Funding to maintain the infrastructure

10. Competing Uses Storage reallocation Storage reallocation Operational changes Operational changes –Missouri River Master Manual revisions –Arkansas River navigation study –Seasonal pools Minimum flow releases Minimum flow releases Special operations Special operations –Releases for canoe races, sediment flushing, etc.

11. Environmental Issues Low DO Low DO Modifying releases to improve downstream fisheries Modifying releases to improve downstream fisheries ‘Tear Down the Dams’ syndrome ‘Tear Down the Dams’ syndrome Endangered species protection Endangered species protection –Least tern, pallid sturgeon, Arkansas shiner, etc.

12. Infrastructure funding Government invests in infrastructure to support commerce & the economy Government invests in infrastructure to support commerce & the economy Continued failure to maintain infrastructure leads to disruption of commerce & the economy Continued failure to maintain infrastructure leads to disruption of commerce & the economy We are unwitting accomplices of Al- Quaida We are unwitting accomplices of Al- Quaida

13. Jonesboro MOA Power customer funds used to finance projects critical to system reliability Power customer funds used to finance projects critical to system reliability Customers select projects from list submitted by Corps and SWPA Customers select projects from list submitted by Corps and SWPA Customers have funded 115 items at $57.7 million over 6 years Customers have funded 115 items at $57.7 million over 6 years

14. Making the $$ go further Power customers need stable source of funding for hydro O&M Power customers need stable source of funding for hydro O&M Hydro O&M competes with navigation, flood control, recreation O&M Hydro O&M competes with navigation, flood control, recreation O&M Using non-appropriated $$ for hydro O&M would free up $$ for other purposes Using non-appropriated $$ for hydro O&M would free up $$ for other purposes

15. Use of PMA receipts Rather than appropriated $$, PMA revenues used to fund Corps hydro O&M Rather than appropriated $$, PMA revenues used to fund Corps hydro O&M Promises stable, reliable source of funding Promises stable, reliable source of funding Frees up $180 million for other Corps purposes Frees up $180 million for other Corps purposes Sec. 2020 of Senate WRDA bill Sec. 2020 of Senate WRDA bill

16. Hydro & navigation: Partners with the river Identify mutual interests Identify mutual interests Identify mutual concerns Identify mutual concerns Develop a strategy to work together Develop a strategy to work together Think bold, think BIG! Think bold, think BIG!