FERC kills Basin Mills dam project > Bangor Hydro-Electric may appeal decision on 11-year-old controversy

The Federal Energy Regulatory Commission on Wednesday formally turned down a request by Bangor Hydro-Electric Co. to build the controversial Basin Mills dam on the Penobscot River between Orono and Bradley.

FERC spokeswoman Celeste Miller said the commission rejected the project because it would harm the migration of nearly all species of oceangoing fish in the river, hamper efforts by federal and state governments and American Indian tribes to restore fish runs there, and create energy that is more costly than now available elsewhere in the region.

The decision, which included relicensing of three other Bangor Hydro dams and expansion on two of those, was hailed by fisheries proponents as good news for Maine’s efforts to restore Atlantic salmon to a river in which they once abounded.

“We are absolutely delighted by FERC’s decision in favor of Atlantic salmon instead of the additional, unneeded dam,” said Don Shields, a spokesman for the Penobscot River Coalition and a fisherman. The organization has been fighting the Basin Mills dam for 11 years.

But Alan Spear, an environmental analyst with Bangor Hydro, said it was too early to declare the Basin Mills proposal dead. Any of the more than 20 parties involved in the lengthy decision — including Bangor Hydro, the Penobscot Indian Nation, Maine Audubon, local fishing groups, and several municipalities adjacent to the projects — could easily call for FERC to reconsider its decision in an administrative appeal process called a rehearing.

“The effort required to continue the process is minimal,” Spear said. “Therefore I would expect many, if not all of the parties to the proceeding to request rehearing.”

Groups involved in the process have been concerned about a variety of issues besides the Basin Mills proposal.

The proposed Basin Mills project has been in the planning stages for years and had been strongly opposed by the Penobscot Indians, environmental groups, the federal Interior Department and Environmental Protection Agency, and the National Marine Fisheries Service.

American Rivers, the environmental group, had put the Penobscot on its endangered rivers list for years because of the proposed dam project. It took the river off the list in 1996, anticipating eventual rejection of the project.

Four of the five commissioners on Wednesday rejected the proposal, with Commissioner Vickie Bailey dissenting.

“The Basin Mills dam would not only constitute a physical barrier to fish migration, but by impounding a large quantity of water it would also change the existing habitat of several miles along the lower Penobscot,” the commission stated. “This change would eliminate valuable habitat for salmon … [and] … destroy forested wetlands which have unique values that would be difficult to replace.”

Impending changes in the way utilities are structured make it unlikely that Bangor Hydro would build the dam even if it does eventually win federal approval. Under deregulation, known within the industry as restructuring, companies that distribute power could not also generate power. Bangor Hydro intends to move to distribution and sell off its generating capacity, including its dams.

“The company has been very public for a while that it would not build Basin Mills,” said Bill Cohen, a spokesman for Bangor Hydro. “However, another entity might come along and want to license and build Basin Mills.”

The proposed 38-megawatt dam, which would produce enough energy to power 45,000 average households, would be especially valuable in such a sale. State rules that go into effect in 2000 require that generating companies have one-third of their capacity come from renewable sources, such as dams. Bangor Hydro already has spent $10 million on environmental studies, licensing fees and engineering plans for the project, Cohen said.

Wednesday’s decision also allows Bangor Hydro to double the generating capacity of its Veazie dam to 16.4 megawatts, relicenses its Milford dam, increasing its capacity from 6.4 to 8 megawatts, and relicenses the company’s Stillwater dam, which produces 1.9 megawatts. The commission required a variety of measures to be taken at and around the dams to improve fish passage.

Miller, of FERC, said the company would be asked to resubmit its request to decommission its Orono dam. Cohen said the company intended to do so, since the dam is in poor shape and is not currently operating.

The Associated Press contributed to this report.