The agreement to take down PacifiCorp’s dams on the Klamath River is in peril. In 2006 we showed in a study funded by the California Energy Commission that decommissioning the dams would likely cost PacifiCorps ratepayers about the same as relicensing. That mitigated the economic argument and opened up the negotiations among the power company, farmers, tribes, environmentalists and government agencies to came to an agreement in 2010 to start decommissioning by 2020.
The agreement required Congress to act by the end of 2015 and that deadline is looming. Unfortunately, there are still opponents who mistakenly believe that the project’s hydropower is cheaper than the alternatives. In fact, the economics are even more favorable today whether PacifiCorp uses natural gas or renewables to replace the lost power. And this analysis ignores the benefits to the Klamath fisheries from decommissioning. It’s too bad that bad simplistic economics can still get traction in the legislative process.
Economics Outside the Cube 
Construction has begun on taking down the dams. https://www.asce.org/publications-and-news/civil-engineering-source/civil-engineering-magazine/article/2023/05/construction-begins-on-removal-of-4-klamath-river-dams
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A summary (with a couple minor errors) of the process leading to decommissioning. https://www.sfgate.com/news/article/why-klamath-dam-removal-project-matters-17894000.php
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Decommissioning of the Klamath Project has begun. The key turning point was our economic analysis in 2006 showing that PacifiCorp would be financially indifferent between decommissioning and relicensing.
https://www.times-standard.com/2023/03/23/klamath-dam-removals-habitat-restoration-begins/
https://lostcoastoutpost.com/2023/mar/23/ground-has-been-broken-klamath-river-restoration-w/
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FERC approves removal of the Klamath River dams. The turn down this branch was triggered by the economic report we did in 2007 that showed the costs of relicensing and decommissioning would be about the same. https://www.sfchronicle.com/california/article/Largest-dam-removal-project-in-U-S-history-gets-17592091.php
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The final approvals have been made and the decommissioning should commence: https://www.enr.com/articles/53978-largest-ever-us-dam-removal-project-gets-federal-agencies-nod
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Unrealistic expectations by the Hoopa tribe in this situation. FERC was ready to approve the fish ladders in 2006 and the SWRCB could not have put together the requisite case in 12 months to show that Section 401 water quality permitting requirements could only be met by decommissioning. The negotiated outcome was the environmentally preferred solution that recognized that PacifiCorp still had some economic interest in relicensing. Instead, this may have opened the flood gates for many in progress relicensing applications to circumvent current state regulations.
https://lostcoastoutpost.com/2019/jun/12/klamath-ruling-environmental-impacts/
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Contract awarded for decommissioning. https://www.enr.com/articles/46825-record-dam-removals-long-delayed-are-awarded-to-kiewit
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More on the underlying agreements on decommissioning the Klamath dams: http://www.hcn.org/articles/on-the-klamath-leaders-celebrate-dam-removal-but-unease-over-water-deal-persists
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More information about the progress of the new proposal to create a non-profit corporation that takes ownership of the dams to remove them. It requires FERC approval.
http://www.capitalpress.com/Water/20160317/proponents-say-new-klamath-dam-pact-is-legal-beneficial
http://abcnews.go.com/US/wireStory/states-federal-agencies-seek-removal-klamath-dams-38150475
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More on a separate agreement to move through the FERC relicensing process instead to decommission the dams: http://www.agalert.com/story/?id=9463
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The Klamath Settlement might be saved. The discussion continues to rely on the economic analysis we did in 2007. http://www.times-standard.com/general-news/20160202/klamath-river-dam-removal-efforts-renewed-in-agreement
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More news on this: http://www.fresnobee.com/news/state/california/article47598605.html
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