State senator opposes dam sale
Vince Lovato | Hagadone News Network | UPDATED 10 years, 7 months AGO
A Kalispell state senator has filed papers aiming to stall or halt the federal license allowing the Confederated Salish and Kootenai Tribes to operate Kerr Dam near Polson.
Sen. Verdell Jackson, R-Kalispell, said he believes the Federal Energy Regulatory Commission and utility supplier NorthWestern Energy do not have the “proper authority to convey the Kerr Project to a tribal government” because it would violate existing contracts and reduce tax funding to schools and Lake County.
In his paperwork filed with the commission, Jackson also claims that the “tribes cannot yet meet the specified conditions of the existing license” and that some affected parties were not properly notified of the sale.
Tribal spokesman Rob McDonald responded that the Polson School District and Lake County would each lose about $400,000 annually in taxes paid by dam owner PPL Montana.
“But the tribe has agreed to make payment in lieu of those taxes,” McDonald said.
He said the dam transition is in the 38th year of a 40-year plan for the transfer of ownership to the tribe.
The Confederated Salish and Kootenai Tribes would be the first tribe in the country to own and operate a dam, which the Tribal Council will rename, McDonald said.
Some nontribal ratepayers fear the tribes might raise electricity rates, but McDonald said the commission still will regulate the cost just as it always has.
“People won’t see a difference,” he said.
The tribes are scheduled to assume control of Kerr Dam in September 2015, McDonald said.
Jackson, an irrigator, also is against the proposed Water Compact and Agreement involving the tribes. And Jackson is staunchly against what he considers giving up water rights to the tribes or anyone else.
Verdell wants the federal commission not to issue a license to the tribes until after the sale of Kerr Dam to NorthWestern Energy is complete, and then to issue the license “as to minimize the disruption to and destruction of the local and regional economies.”
PPL Montana is in the process of selling 11 Montana hydroelectric dams, including Kerr Dam, to NorthWestern Energy. Kerr Dam is scheduled to go to the tribes regardless of the timetable for the statewide dam transaction.
After extensive hearings and negotiations, an arbitrator determined decided that tribal-owned Energy Keepers will pay $18.3 million to purchase Kerr Dam.
The tribes offered $14.7 million while PPL Montana was asking $50 million.
Verdell says the dam is worth more than $200 million.
The dam was constructed in 1938.
The Tribal Council has said the only difference to ratepayers is more economic benefits will stay in the valley instead of going to Pennsylvania, where PPL Montana is headquartered. The tribes already operate area electricity-provider Mission Valley Power.
Lovato writes for the Lake County Leader
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