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Page 6 July 2 1 ,1982
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July 21, 1982 Page 7
by Donna Behrend
What once seemed like a dream is
now reality. After four years of
s t u d ie s , n e g o t i a t i o n s a n d
construction, Warm Springs’ $30
million hydroelectric project, the
only Indian-owned hydroelectric
project in the United States, is now
com plete and fu n ctio n a l. The
project was financed in part by the
Tribes, a no-interest government
loan and a loan from the state of
Oregon.
The dream began in June, 1978,
when Warm Springs received a
Federal Department of Energy grant
for $86,000 to conduct a feasibility
study for possible development of a
hydro power plant at the Pelton
Reregulating dam. lnthemid-1950’s,
when the Pelton and reregulating
dams were built, the Tribes had the
foresight to reserve the right to build
a powerhouse at the reregulating
dam.
In February, 1979, the study was
complete and of particular concern
included in the study was th e impact
the project would have on the
surrounding environment. To build
the plant, a license was required
from the Federal Energy Regulatory
Commission (FERC) and FERC
procedures required a checklist of
governm ental agencies to be
advised of any project plans and
their expected impact.
By March, 1979, inflation was
already hitting the Tribes* project. It
was estimated that it would cost the
Tribes $175,000 for each month of
delay. “ Time is money,” seemed to
set the momentum at which the
Tribes and their advisors moved
throughout the year.
It was on May 25 tnat tribal voters
approved, by an 84% margin, the
construction of the hydro project
and the appropriation of $10 million
for the project. Approval, which was
383 votes jn favor and 73 votes
against, commenced groundwork
that included an application to FERC
for the required license, interviewing
turbine manufacturers, negotiating
for power sales, retaining financial
and engineering consultants and
negotiating with landowners for
transmission line right-of-way.
At the time, it was expected to take
10 months to obtain the FERC
license. Again, time was of the
essence, as ahy unnecessary delays
could prove to be very expensive to
the Tribe.
It was reported in the August 24,
1979 edition of Spilyay Tymoo that
the Confederated Tribes selected
Voest-Alpine International for the
design, construction and deliveiy of
a bulb turbine and generator, a $5.1
million cotract. The Tribes selected
the Austrian-based firm on the basis
of efficiency, price and length of tim e.
it would take to deliver the turbine
and generator.
At the same time, the Tribal
Council also appointed a panel of
three engineers, whose job it was to
review the project planning and
design and to ensure construction of
a safe and high-quality structure.
This appointment was part of FERC
requirements
In November, 1979, consulting
engineer Jerry Dibble reported that
the project was “ on schedule” . He
also recommended to Council that
two contracts be awarded, one for all
preliminary excavation, and one for
Hydro project result of wise foresight
Spilyay Tymoo
photos
by
Donna Behrend
Consulting electrical engineer Jerry Dibble was made a “blood
brother” of the Tribe and was presented a headdress.
the powerhouse installation.'
Late in 1979, the Tribes received a
$5 m illio n n o -in te re st federal
government loan, to be paid at the
end of 20 years. The appropriation
was approved by Congress for the
1980 budget of the Department of
the interior primarily because the
Tribes were unable to obtain tax-
exempt status which is available to
other minicipal entities.
-
In March, 1980, the Tribes
received their FERC license./The
license was prepared in “ record
time” (nine months) and it allowed
the Tribes and Portland General
Electric (PGE) to become joint
licensees for the; hydro project. It
was also reported at the same time
that the Tribes were stilt-negotiating
'5th Ch
Jack
*nr t ••
'"r
his land where the dam is located.
Later in the month, advertising
began for the excavation contract
portion of the project. This came
immediately after the Jackson
n e g o tia tio n s w ere c o m p le te d .
Sixteen com panies asked fo r
construction specifications and bids
were expected to run between .$1
and $2 million. Oh April 22,1980, the
Tribes awarded the construction
contract to Fred Slate Company of
Astoria. Preliminary work began in
mid-April.
By mid-October, 1980, the Fred
Slate Company began work on the
coffer dam that would hold back
water so the dam could be breeched
(cut into) in order to install the
powerhouse. .
1? ,
p i),
.
construction were released March
19, 1981, and in A p ril, ASC
C onstructors, Incorportated Of
ídaho, was selecfed to install the
powerhouse. The bid was fo r
approximately $11.7 million. Work
began shortly after the ground
breaking ceremonies which were on
A p ril 22. The groundbreaking
ceremonies drew two television
stations and many other media
outlets as well.
The power sales contract was
awarded to Pacific Power and Light
(PP&L) on May 19, 1981. PP&L,
through the contract, would be able
to purchase net power output of the
project and would install a 69,000-
volt, thfee-mile transmission line to
connect the new powerhouse with
the existing electric system at the
It was in June, 1981, through the
new Oregon Energy Loan program,
that the state advertised a bond issue
that partially financed the Tribes’
project.
Early in July the generator for the
project arrived after a 12-hour trip
from Portland. Also in July, Dibble
stated that the turbine was about
95% complete except for installation.
About half of the $30 million budget
for the project was to be spent by late
July.
In September, Dibble estimated
that the financial aspects were much
better than previously thought—net
return was 2.5 times greater than
estimated in 1979.
Though most o f the project rolled
a lo n g s m o o th ly , th e re w ere
problem s. In January, 1981, the
original design engineering firm
services were terminated because
they were unable to meet deadlines
for plans as required by FERC, the
board of consultants and PGE.
Simutaneously, the Charles T. Main
Engineering Company of Boston
was retained tocomplete the project;
Because of this failure to meet
deadlines, the hydro project was
delayed several months.,
A n o th e r p ro b le m a ro s e in
November of the same year. The
O re g o n S ta te B u ild in g and
Construction Trades Council filed
legal action in an attempt to stop the
$15 million state loan which the
trib e s had acquired through the
special bona issue; The Trades
Council charged that ASQ was
paying $8 to $9 less per hour than
prevailing area wage rates. The
petition was thought silly, defective
and faulty by tribal attorney Dennis
Karnopp. The circuit court granted a
motion to dismiss due to lack of
jurisdiction. The Trades council, in
turn, appealed the court’s decision.
The matter is still being considered.
Throughout the endurance of the
project, time schedules were met; As
a n tic ip a te d , the 7 p la n t began
producing electricity on July 17,
1981. The first PP&L check for
p urcha se o f th e pow er was
presented to the Tribes on July 16,
follow ing the dedication cere
monies.
The hydro project is one to be
proud of...and it wH, produce an
alternate source of revenue for the
Tribes—ensuring financial Stability
in the years to come. In this case,
foresight was much better than
hindsight