A motion to construct a $1 billion hydro-power plant north of McPhee reservoir has died for lack of a second.
The Dolores Water Conservancy District had been seeking investors for the pump-back, hydro-electric plant that would have included 2-3 new reservoirs in the steep Plateau Creek canyon, a tributary of McPhee.
DWCD was not planning on building or funding the project, but had obtained a preliminary permit for it from the Federal Energy Regulatory Commission.
But the commission recently denied a permit renewal because the project had not moved forward enough.
DWCD manager Mike Preston said the project died due to lack of interest from investors.
“We took the preliminary step to determine if it was a feasible project, but its time has not come yet,” he said. “We can always go back and reapply for the permit.”
Just the environmental reviews and regulatory hurdles would have cost several million dollars.
Lack of interest is due in part to the low cost of natural gas, which makes natural gas power plants a more feasible for investors, compared to an expensive hydro-electric plant that could take decades to approve and build.
Preston said a memorandum for investors on the estimated costs and regulatory hurdles was shopped around to energy companies, but with no luck.
“FERC was not ready to move us on to the next step,” he said of the permit denial.
DWCD is a party to the private power project proposal because they hold the water rights and have municipal preference.
Pump-back hydro storage is considered a non-consumptive, green energy power source.
The system acts like a charged battery, where water from an upper reservoir is released to turn turbines that deliver electricity to the grid. Water from the lower reservoir is pumped back uphill to recharge the battery. Pumping costs are covered, and profits are made, by selling the power during peak demand when the price is highest.
jmimiaga@the-journal.com