EP 1165-2-1
30 Jul 99
CHAPTER 16
HYDROELECTRIC POWER
16-1. Authority and Corps Responsibilities. Through various
statutes, Congress has directed consideration of hydroelectric power
in water resource development plans. The Corps formulates
comprehensive plans which include development of hydroelectric power
by a non-Federal sponsor. Congress has authorized projects that
involved hydropower development on the basis of these recommendations.
a. General Responsibilities. The various functions of
multiple-purpose water resource development projects are interrelated,
and operation for individual functions is coordinated with operation
for all functions. The Corps is responsible for insuring the maximum
sustained public benefits from each of its projects for all desirable
purposes, including power, as integral parts of comprehensive plans
for the regulation, control, conservation and utilization of water
resources. Consistent with the project authorizations, this is a
continuing responsibility throughout the planning, design,
construction, and operation phases. Particular attention is given to
the operation of projects to obtain the benefits which were
anticipated during the planning stages. Within the scope of projects
as authorized, the Corps is responsible for determining the proper
design and plan of operation for each of its projects so that maximum
sustained public benefits will be obtained. Valuable assistance is
obtained from other agencies on special aspects such as expected
market for power and the value of the power. The Corps must review
data and recommendations furnished by others and make such additional
investigations as are necessary so that its responsibilities are
fulfilled.
b. Additional Responsibilities. Congressional authorizations
include the responsibility for the Corps to operate projects under its
jurisdiction for all authorized purposes. The Corps is responsible
for determining the costs and annual charges of recommended plans of
improvement, allocation of those costs and charges to functions served
(except where provided otherwise by law), maintaining cost accounting
records, maintaining records of project operations, and furnishing
others such information as required or appropriate.
16-2. Evaluation. The value of power to the users is measured by the
amount that they should be willing to pay for such power. The usual
practice is to measure the benefit in terms of the cost of achieving
the same result by the most likely alternative means that would exist
in the absence of the project. Project capacity benefits are based on
the cost of the most likely alternative means of constructing a like
amount of capacity financed on the same basis as the Federal project.
Energy benefits are based on the expected operating costs of the most
likely means of producing a like amount of energy in the absence of
the Federal project. Energy benefits assume unregulated fuel prices
unconstrained by existing long term contracts and may, where
supported, reflect increased costs resulting from relative scarcity.
Operating experience indicates that the installed capacity in excess
of that considered dependable may have a value. This "intermittent"
power capacity is given a value when system operation studies show
such capacity has value. Simplified procedures are used for small
scale hydroelectric projects (25 MW or less) so that plans for
environmentally and economically sound projects may be reported in a
timely fashion. (18 CFR 713.601)
16-1
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