FERC releases annual update of hydroelectric project land use fees

The Federal Energy Regulatory Commission has issued the annual update to its fee schedule for occupation of federal lands by FERC-licensed hydroelectric projects.

FERC published the latest annual update March 7 in the Federal Register, listing the per-acre rental fees for federal land on a per-county basis, or based on other geographic areas in Alaska and Puerto Rico.

FERC says, “Updates to appendix A to part 11 with the fee schedule of per-acre rental fees by county (or other geographic area) are applicable from October 1, 2016, through September 30, 2017 (Fiscal Year 2017).”

The fee schedule is based on a formula with the following components: a per-acre land value by county (or geographic area in Alaska and Puerto Rico); an “encumbrance factor”; a 5.27% rate of return that converts the land value to a rental value; and an annual inflation adjustment.

FERC assesses annual charges for federal land use by more than 250 licenses held by about 135 licensees.

After FERC collects the fees, they are allocated 12.5% to the U.S. Treasury, 50% to the federal reclamation fund, and 37.5% to the states in which the projects are located.

For more FERC news, click here.

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Elizabeth Ingram is content director for the Hydro Review website and HYDROVISION International. She has more than 17 years of experience with the hydroelectric power industry. Follow her on Twitter @ElizabethIngra4 .

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