REPORT TO COUNCIL
SUBJECT
Title
Action Authorizing the Submittal of an Application to FERC to Surrender the High Line Canal Hydroelectric Project Hydroelectric License, and Authorizing the City Manager to Complete Related Administrative Actions
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
In 1984, the Federal Energy Regulatory Commission (FERC) issued a license to the City of Santa Clara (City) to construct and operate the High Line Canal Hydroelectric Project (High Line) located near Orland, California. High Line was completed in 1989 with a capacity of 0.53 MW at an installed cost of about $1 million.
Due to frequent and recurrent operational issues, High Line has been in an inoperable state since May 2020. Staff has evaluated High Line's condition, reviewed historical generation output, and performed a financial analysis to determine repair costs and project future revenues. The resulting studies have concluded that repairing and operating High Line is no longer financially viable and therefore, staff is planning to begin the process of FERC license surrender and facility decommissioning.
DISCUSSION
As the sole licensee for the High Line Canal Project, FERC No. 7252-CA, the City is subject to numerous FERC hydroelectric license conditions and regulatory requirements. Of note, 18 CFR ? 6.4 states that if generation from the project is "discontinued for a period of three years", FERC will deem it to be the intent of the licensee to surrender the license, and not less than 90 days after public notice, may at its discretion terminate the license.
Under normal operation, High Line results in a net loss to the City and the estimated repair costs exceed several years of generation revenue. Repair strategies have historically been unsuccessful, and it is unlikely that reliable operation could be achieved without major design changes to the facility. Additionally, remote facilities like High Line ha...
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