Energy Incentives, FERC News, Regulation and Policy

FERC certifies 4.8-MW Clyde River for production tax credit

The Federal Energy Regulatory Commission has certified incremental hydropower generation of the 4.8-MW Clyde River project, making the additional generation eligible for a production tax credit.

Licensee Great Bay Hydro Corp. requested certification for efficiency improvements it completed in December 2005 at the project (No. 2306) near Newport, Vt. Based on the Oct. 6 application, FERC certified incremental generation Nov. 3 of 3,334 MWh, and placed the percentage of additional generation due to the improvements at 19.71 percent.

The Energy Policy Act of 2005 amended the Internal Revenue Code to apply a 0.9 cent per kilowatt-hour tax credit for incremental production gains from efficiency improvements or capacity additions to existing hydro facilities placed in service after Aug. 8, 2005, and before Jan. 1, 2008. FERC is responsible for certifying baseline production information and the gain in generation derived from project improvements or additions.

Great Bay attributed the increase in incremental average energy production to rebuilding of Newport Unit 3, which had not been operated for five years, and to replacing the hydraulic control system and installing new electronic controls for all three units in the project’s Newport 1, 2, 3 development.

FERC previously certified incremental hydropower production for: Erie Boulevard Hydropower L.P.’s 7.46-MW Oswego Falls (No. 5984) in New York; Duke Power’s 820-MW Keowee-Toxaway (No. 2503) in North Carolina and South Carolina; and Brookfield Power’s 29.08-MW Piney (No. 309) in Pennsylvania. (HNN 10/18/06) PacifiCorp’s 161.338-MW Klamath project (No. 2082) in California and Oregon was the first project to be certified. (HNN 6/2/06)