The U.S. Federal Energy Regulatory Commission on Thursday denied a request for a new hearing on Energy Keepers Inc.’s acquisition of the recently renamed Seli’s? Ksanka Qlispe’ Dam.

On Oct. 1, the Montana Public Service Commission had asked the federal agency to hold a new hearing to discuss concerns with the Sept. 5 takeover of the former Kerr Dam.

Two similar rehearing requests, from the Montana Land and Water Alliance and from state Sen. Bob Keenan, R-Bigfork, and former Sen. Verdell Jackson, also were denied in the federal commission’s order.

“The order is simple, but comprehensive and emphatic,” Joe Hovenkotter, an attorney for Energy Keepers, said in a press release. “It absolutely rejects all arguments by the petitioners.”

The federal license to operate the hydroelectric dam must be renewed every 50 years. The most recent renewal, in 1985, included a provision that the owner and operator at the time would be co-licensees with the Confederated Salish and Kootenai Tribes tribes for 30 years, after which the tribes could purchase the dam and take over ownership and the federal license.

Energy Keepers, a corporation owned by the tribes, purchased the dam Sept. 4 and assumed full ownership on Sept. 5. The tribes are co-licensees of the dam along with the tribal corporation.

The state utility board’s rehearing request had specifically noted that the 1985 hearings did not address the inclusion of Energy Keepers, which the tribes created later, specifically to acquire and manage the dam.

In its Nov. 19 order, the federal commission held that Energy Keepers had demonstrated it was qualified to hold the license and operate the facility, and that “there is nothing in the transfer application that raises doubt about Energy Keepers’ ability to comply with the terms of the project license.”

In an Oct. 30 interview, Public Service Commission Chairman Brad Johnson said the rehearing request was not an objection to the tribes’ takeover. He contended that the public had a right to a new hearing given Energy Keepers’ status as a co-licensee.

“The questions we had were about Energy Keepers and their role, and how management of the facility was going to move forward,” Johnson said. “At no time has this commission questioned the validity of the transfer of ownership of the dam to the tribe. That was done as part of the 1985 agreement, and that’s never been our position.”

At the time, Johnson said he did not expect the state commission to pursue the request further if it was denied.

However, Kate Vandemoer, the chairwoman of the Montana Land and Water Alliance, indicated her organization is considering an appeal of the federal decision, which would be heard in the U.S. District Court of Appeals in Washington, D.C.

Last month, the Energy Keepers invited area lawmakers to tour the dam, where utility officials answered questions about their financial ability to continue operations of the dam and assured the legislators that they would continue to the same operations as the past 30 years, per the requirements of the license.

State Sen. Bob Keenan, R-Bigfork, who has been critical of the tribes’ plan to assume ownership and operation of the facility, said after the tour that he appreciated the show of transparency but still had concerns.

“I think today was a great start, and was a great effort on their part to communicate,” Keenan said in an Oct. 28 interview. “I hope, in the distant future, that all things will remain on an amicable basis.”

Keenan and Jackson had asked for a public hearing “so that the Montana public can determine whether the license transfer is in the public interest of the state.”

Keenan and Jackson have also objected to the transfer of dam ownership to a sovereign nation.

In its order last week, the federal energy commission stated that “the statute does not require that hearing be held to allow the public to decide whether they support a proposed transfer, as the senators suggest.”

Reporter Sam Wilson can be reached at 758-4407 or by email at swilson@dailyinterlake.com.