Tuesday, April 14, 2009

Forest Service fees rising for electric utilities

Electric utilities throughout California are getting hit with steep cost increases to continue using federal land for their hydropower projects. Conservationists say it's about time. The Placer County Water Agency's annual land use fee for its Middle Fork American River hydropower dams is jumping from $286,000 to $880,000 annually. The charge to Sacramento Municipal Utility District's Upper American River Project is rising from $343,000 to $635,000. Both are expected to increase again next year. The two utilities use U.S. Forest Service land in the Sierra Nevada to store and move water to generate electricity. The higher bills were mailed in late March by the Federal Energy Regulatory Commission, which has not adjusted the fees since 1987. Payment is due in early May. The agency estimates the fees are increasing, on average, 113 percent for hydropower utilities nationwide this year...Sacramento Bee

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