Delaware County Electric Cooperative application to FERC

8/8/2019 Delaware County Electric Cooperative application to FERC

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UNITED STATES OF AMERICABEFORE THEFEDERAL ENERGY REGULATORY COMMISSION

APPLICATION FOR PRELIMINARY PERMIT

WESTERN CATSKILLS HYDRO PROJ

FERC NO. _____

Applicant

DELAWARE COUNTY ELECTRIC COOPERATIVE


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TABLE OF CONTENTSInitial Statement

Additional Information (18 CFR 4.32)

Exhibit 1 Project Description 1.1. Existing and Proposed Facilities 1.2. Impoundments 1.3. Turbines and Generators 1.4. Transmission Lines 1.5. Lands of the United States 1.6. Public Interest Exhibit 2 Description of Studies 2.1. Studies Process 2.2. Studies to be Completed 2.3. Roads 2.4. New Dam Construction 2.5. Schedule for Studies Exhibit 3 Cost and Financing 3.1. Estimated Costs 3.2. Financial Sources 3.3. Proposed Market Exhibit 4 Project Maps


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INITIAL S TATEMENTBefore the Federal Energy Commission

1. Delaware County Electric Cooperative (DCEC) applies to the Federal EnRegulatory Commission for a preliminary permit for the proposed WesteCatskills Hydro Project water power project, as described in the attachedThis application is made in order that the applicant may secure and mainpriority of application for a license for the project under Part I of the Fed

Power Act while obtaining the data and performing the acts required to dthe feasibility of the project and to support an application for a license.

2. The location of the proposed project is:State: New YorkCounty: Schoharie, Delaware and SullivanTownship: Gilboa, Deposit, Colchester and Neversink

Stream: Schoharie Creek, West Branch Delaware River, EBranch Delaware River and Neversink River

3. The exact name, business address, telephone number and email address oapplicant are provided below.

Delaware County Electric Cooperative39 Elm Street, P.O. Box 471

Delhi, NY 13753Tel: (607) 746-2341Fax: (607) 746-7548Email: [email protected]

The exact name, business address, telephone number and email address operson authorized to act as agent for the applicant in this application are below.

Gregory J. Starheim, CEO and General ManagerDelaware County Electric Cooperative39 Elm Street, P.O. Box 471Delhi, NY 13753Tel: (607) 746-9281F (607) 746 7548


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Jeffrey C. Genzer, Esq.Duncan Weinberg Genzer & Pembroke, PC

1615 M Street, N.W., Suite 800Washington, D.C. 20036Tel: (202) 467-6370Fax: (202) 467-6379Email: [email protected]

James A. Besha, P.E.Albany Engineering Corporation

5 Washington SquareAlbany, NY 12205Tel: (518) 456-7712Fax: (518) 456-8451Email: [email protected]

4. The applicant is incorporated as a 501(c)-12 business corporation pursuaRural Electric Cooperative Law, Laws of New York, 1942, Chapter 566

not claiming preference under section 7(a) of the Federal Power Act.

5. The proposed term of the requested permit is 36 months.6. The Western Catskills Hydro Project comprises four development sites.

sites are located at water supply reservoirs that are within the comprehenhydraulically linked West of Hudson water resource system that is owoperated by the City of New York. The name and address of the owner o

dams that will be used as part of the project facilities is:

New York CityDepartment of Environmental ProtectionBureau of Water Supply71 Smith AvenueKingston, NY 12401

ADDITIONAL INFORMATION (1 8 CFR 4. 32)1. DCEC intends to obtain and will maintain any proprietary right necessar

construct, operate or maintain the project.

2 Listed below are the names and mailing addresses of entities affected by


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2.1. Counties:

Broome CountyCounty AdministratorPO Box 1766, 44 Hawley StreetBinghamton, NY 13902

Chenango CountyCounty Chairman5 Court StreetNorwich, NY 13815

Delaware County

Chairman, Board of Supervisors111 Main Street

Delhi, NY 13753

Greene County

County Administrator411 Main Street, PO Box 4

Catskill, NY 12414

Schoharie CountyChairman, Board of SupervisorsCounty Office Building284 Main StreetSchoharie, NY 12157

Sullivan CountyCounty Chairman100 North Street, PO Box Monticello, NY 12701

Susquehanna County

County CommissionerCounty Courthouse, PO Box 218Montrose, PA 18801

Ulster County

County ChairmanPO Box 1800, 244 Fair StrKingston, NY 12402

Wayne CountyCounty Commissioner925 Court StreetHonesdale, PA 18431

2.2. Municipalities:

Town of Fallsburg

Town Supervisor19 Railroad Plaza SouthFallsburg, NY 12779

Town of Liberty

Town Supervisor120 North Main StreetLiberty, NY 12754

Town of RochesterTown Supervisor50 Scenic Road, P.O. Box 65Accord, NY 12404

Town of ThompsonTown Supervisor4052 Route 42Monticello, NY 12701


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Town of Andes

Town Supervisor580 Main StreetAndes, NY 13731

Town of Colchester

Town Supervisor72 Tannery Road, PO BoxDownsville, NY 13755

Town of Conesville

Town Supervisor1306 State Route 990VGilboa, NY 12076

Town of Deposit

Town Supervisor3 Elm StreetDeposit, NY 13754

Town of Gilboa

Town Supervisor373 State Route 990VGilboa, NY 12076

Town of Middletown

Town Supervisor42339 State Hwy 28, PO BMargaretville, NY 12455

Town of Neversink

Town Supervisor

273 Main Street, PO Box 307Grahamsville, NY 12740

Town of Prattsville

Town Supervisor

14517 Main StreetPrattsville, NY 12468

Town of Roxbury

Town Supervisor53690 State Hwy 30, PO Box 189Roxbury, NY 12474

Town of Tompkins

Town Supervisor148 Bridge Street, PO BoxTrout Creek, NY 13847

2.3. The four development sites comprising the Western Catskills Hydro Projlocated at water supply reservoirs that are within the comprehensive,hydraulically linked West of Hudson water resource system that is owoperated by the City of New York. There are no irrigation districts, draindistricts or other political subdivisions known to be located within the prarea.

2.4. There are no other political subdivisions in the general area of the projecthere is reason to believe would likely be interested in, or affected by, thapplication.

2.5. There are no known Indian tribes that may be affected by the project.


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EXHIBIT 1 PROJECT DESCRIPTIONThe proposed Western Catskills Hydro Project is a new waterpower project thatdeveloped by Delaware County Electric Cooperative (DCEC).

The Western Catskills Hydro Project comprises four development sites. All fourlocated at water supply reservoirs that are within the comprehensive, hydraulicaWest of Hudson water resource system that is owned and operated by the CityYork. The four development sites are identified below.

Western Catskills Hydro Project

Development Sites

Development Dam River

Schoharie Gilboa Schoharie CreekCannonsville Cannonsville West Branch Delaware RiverPepacton Downsville East Branch Delaware River Neversink Neversink Neversink River (tributary to Delaware R

Certain of the developments within the Western Catskills Hydro Project have prbeen the subjects of proceedings before the Federal Energy Regulatory Commis(FERC) brought by New York City Department of Environmental Protection anduring the period from about 1983 to 1990. None of these proceedings resulted construction of new generating facilities, although, in certain cases authorizationgranted and then subsequently terminated or surrendered. The Applicant has rev

available information regarding these past proceedings and has developed the prWestern Catskills Hydro Project to respond to and mitigate the critical issues idthe prior proceedings. In proposing a comprehensive plan and standardized desielements to develop this currently underutilized hydroelectric resource, it is antithat the Western Catskills Hydro Project will be constructed and operated in anenvironmentally beneficial and economic manner.

SCHOHARIE DEVELOPMENTThe Gilboa Dam was constructed in 1926 to impound the Schoharie Creek in thof Gilboa and create the Schoharie Reservoir. Upgrades to the existing dam andby the New York City Department of Environmental Protection are scheduled toplace in the near future as part of the Gilboa Dam restoration project. The SchohReservoir extends approximately six miles upstream and has a surface elevation


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CANNONSVILLE DEVELOPMENTThe dam impounding the Cannonsville Reservoir was constructed in 1964 to imWest Branch of the Delaware River in the Town of Deposit. The Cannonsville Rextends approximately 12 miles upstream and has surface elevation of 1,171.5 fsurface area of 4,800 acres and a storage capacity of approximately 300,000 acrThe Cannonsville Development of the Western Catskills Hydro Project will utilavailable flow from Cannonsville Reservoir that is surplus to New York Citysrequirements.

PEPACTON DEVELOPMENTThe Downsville Dam was built in 1954 to impound the East Branch of the DelaRiver in the Town of Colchester and create the Pepacton Reservoir. The PepactoReservoir extends approximately 17.6 river miles upstream and has a surface are6,400 acres at the spillway crest and storage capacity of approximately 430,000 The Pepacton Development of the Western Catskills Hydro Project will utilize aflow from Pepacton Reservoir that is surplus to New York Citys requirements.

NEVERSINK DEVELOPMENTThe dam impounding the Neversink Reservoir was constructed in 1953 to impouNeversink River in the Town of Neversink. The Neversink Reservoir extendsapproximately 5.4 river miles upstream and has a surface area of 1,500 acres ancapacity of approximately 170,000 acre-feet. The Neversink Development of thCatskills Hydro Project will utilize available flow from Neversink Reservoir tha

surplus to New York Citys requirements.

1.1 EXISTING AND PROPOSED FACILITIESThe Western Catskills Hydro Project has been designed to provide standardizatimodularization of individual hydraulic structures, civil structures, hydraulic equand electrical equipment to the greatest extent possible. This will provide signifi

economies of design, fabrication, procurement, construction, operation and main

The type of water intake and conveyance has been selected to provide minimal iand impact on the New York City water supply system dams and reservoirs. Allproposed for the Western Catskills Hydro Project are physically separate from NCitys water supply intakes, spillways and conveyance structures. The design ofi k h b l d i f b i i d i i i b h


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The powerhouses are modular in design and will be equipped with one, two or fturbine/generator units, depending on the site. The turbine/generator systems ha

selected to provide identical units at all the development sites, which will maximeconomic advantage in procurement. The types of units selected will provide effoperation over a broad range of flows.

Switchgear, controls and interface to the electrical grid are also of modular desigpermit economies of procurement, installation, operation and maintenance.

SCHOHARIE DEVELOPMENTSchoharie Development Existing Project Features

An existing earthen dam approximately 2,273 feet long and 183 feet highconcrete overflow spillway to the Schoharie Creek. The Gilboa Dam wa1926 by New York City to impound the Schoharie Creek and create the Reservoir as a water supply resource. Modifications were made to the da2006 to improve its structural stability. The New York City Department

Environmental Protection plans to further upgrade the existing dam and in 2008-2011 as part of its Gilboa Dam restoration project. This work is to include the re-surfacing of the entire face of the dam and re-constructioverflow structure, including a directional spillway and vanes, the instalcrest gate on the adjacent bypass discharge spillway and a tunnel with anstructure and control gates along with a discharge release plenum downsthe dam.

The Schoharie Reservoir extends approximately six miles upstream and surface elevation of 1,130 feet, a surface area of 1,150 acres and a storagcapacity of approximately 95,575 acre-feet.

Schoharie Development P roposed Project Features1. An intake system consisting of four individual prefabricated steel intake

chambers, rectangular in shape with an inclined top opening composed o

panels with 0.25-inch openings. Design velocity normal to the screen is per second. Each intake chamber will rest on the existing embankment dfoundation loading of less than 200 pounds per square foot. Each intake will be equipped with an automated rotary cleaning device and an adjustup shutter to permit elevation-specific withdrawal of water based on theother criteria. Each intake chamber will be connected to a steel penstock


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below spillway elevation, to the pressure portion of the penstocks. Siphoequipment, siphon break valves and control equipment will be located ne

apex of the penstock system at the non-overflow embankment dam crestPenstocks will be lined with epoxy coating suitable for potable water conBuried portions of the penstocks will be coated. Exposed portions of thepenstocks will be uncoated weathering type steel. Penstocks will be rinstiffened and rest on concrete foundation piers. The penstocks will termithe powerhouse.

3. A powerhouse constructed of reinforced concrete and enclosing the fourand generators, medium voltage switchgear and controls. The powerhoufounded on rock and discharge to the natural stream channel just downstthe toe of the existing embankment dam. A tailrace channel will be excaapproximately 100 feet in length with a nominal tailwater elevation of 96

4. Four state-of-the-art, high-efficiency Deriaz or high head Kaplan type tueach with a hydraulic capacity of 525 cubic feet per second at the design165 feet. Design flow for the Schoharie Development is 2,100 cfs, with a

minimum operating flow for one unit of 50 cfs.

5. Four direct coupled, vertical, synchronous generators each rated at 6,000kilowatts at 0.8 power factor, 80C rise and operated at 5,875 kW. Total capacity for the Schoharie Development will be 23,500 kW.

6. Medium voltage unit switchgear consisting of generator unit circuit breapotential transformers, current transformers and protective devices. Appr

station service equipment and excitation systems. An automated control linked in real time to the DCEC dispatch center.

7. Underground generator leads approximately 500 feet in length connectedkV to 34.5 kV substation with step-up transformer rated at 30 MVA, primcircuit breaker, lightning protection and protective relaying.

8. An aerial subtransmission line approximately 13,000 feet in length, oper34.5 kV.

9. Interconnection to an existing 115 kV subtransmission or transmission liby New York State Electric & Gas Corporation. A 30 MVA. 34.5 kV/11step-up transformer and primary circuit breaker located at the point of grinterconnection.


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overflow weir. The upper weir crest is 560 feet in length with a crest ele1,158.0 feet. The lower weir crest is 240 feet in length with a crest eleva

1,150.0 feet. Construction of the dam was completed in 1964 to impoundWest Branch of the Delaware River and create the Cannonsville Reservoreservoir was constructed by New York City as a water supply resource.

The Cannonsville Reservoir extends approximately 12 miles upstream ansurface elevation of 1,171.5 feet, a surface area of 4,800 acres and a storcapacity of approximately 300,000 acre-feet.

An existing 46 kV transmission line that is part of the existing New YorkElectric & Gas Corporation electrical distribution system that passes dowof the dam across the West Branch of the Delaware River.

Cannonsvi lle Development Proposed Project Features1. An intake system consisting of four individual prefabricated steel intake

chambers, rectangular in shape with an inclined top opening composed o

panels with 0.25-inch openings. Design velocity normal to the screen is per second. Each intake chamber will rest on the existing embankment dfoundation loading of less than 200 pounds per square foot. Each intake will be equipped with an automated rotary cleaning device and an adjustup shutter to permit elevation-specific withdrawal of water based on theother criteria. Each intake chamber will be connected to a steel penstockfeet in diameter. Two of the intake chambers will be equipped with submelectric pump systems to be used for delivering minimum flows below th

suction head limit. Normal headwater elevation ranges from a maximumfeet to a minimum operating level of 1,130 feet.

2. The conveyance system consists of four identical steel penstocks, each ein diameter, operated as sub-atmospheric siphons from the reservoir levebelow spillway elevation, to the pressure portion f the penstocks. Siphonequipment, siphon break valves and control equipment will be located neapex of the penstock system at the non-overflow embankment dam crest

Penstocks will be lined with epoxy coating suitable for potable water conBuried portions of the penstocks will be coated. Exposed portions of thepenstocks will be uncoated weathering type steel. Penstocks will be rinstiffened and rest on concrete foundation piers. The penstocks will termithe powerhouse.


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4. Four state-of-the-art, high-efficiency Deriaz or high head Kaplan type tueach with a hydraulic capacity of 500 cubic feet per second at the design

150 feet. Design flow for the Cannonsville Development is 2,000 cfs, wiminimum operating flow for one unit of 50 cfs.

5. Four direct coupled, vertical, synchronous generators each rated at 6,000kilowatts at 0.8 power factor, 80C rise and operated at 5,125 kW. Total capacity for the Cannonsville Development will be 20,500 kW.

6. Medium voltage unit switchgear consisting of generator unit circuit breapotential transformers, current transformers and protective devices. Apprstation service equipment and excitation systems. An automated control linked in real time to the DCEC dispatch center.

7. Underground generator leads approximately 100 feet in length connectedkV to 46 kV substation with step-up transformer rated at 30 MVA, primabreaker, lightning protection and protective relaying.

8.

An existing aerial subtransmission line to be upgraded to a 46 kVsubtransmission/distribution line.

9. Interconnection to an existing 46 kV subtransmission line owned by NewState Electric & Gas Corporation.

PEPACTON DEVELOPMENTPepacton Development Ex isting Project Features

An existing zoned earth embankment with a concrete core wall founded The Downsville Dam is approximately 2,450 feet in length and has a maheight of 254 feet. The top width of the dam is approximately 45 feet anbottom width at grade is approximately 2,000 feet. Construction of theDownsville Dam was completed in 1954 to impound the East Branch of Delaware River and create the Pepacton Reservoir, which was completed

The Pepacton Reservoir was constructed by New York City as a water suresource. The major spillway, located near the north end of the Downsviis an uncontrolled side channel spillway with an ogee crest. The side chadischarges into a concrete lined tunnel, 40-feet in diameter. The crest of is approximately 800 feet long and the tunnel is approximately 1,530 feeThe spillway crest is at elevation 1,280 feet.


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Pepacton Development Proposed Project Features1.

An intake system consisting of four individual prefabricated steel intakechambers, rectangular in shape with an inclined top opening composed opanels with 0.25-inch openings. Design velocity normal to the screen is per second. Each intake chamber will rest on the existing embankment dfoundation loading of less than 200 pounds per square foot. Each intake will be equipped with an automated rotary cleaning device and an adjustup shutter to permit elevation-specific withdrawal of water based on theother criteria. Each intake chamber will be connected to a steel penstock

feet in diameter. One of the intake chambers will be equipped with submelectric pump systems to be used for delivering minimum flows below thsuction head limit. Normal headwater elevation ranges from a maximumfeet to a minimum operating level of 1,260 feet.

2. The conveyance system consists of two identical steel penstocks, each eiin diameter, operated as sub-atmospheric siphons from the reservoir levebelow spillway elevation, to the pressure portion f the penstocks. Siphon

equipment, siphon break valves and control equipment will be located neapex of the penstock system at the non-overflow embankment dam crestPenstocks will be lined with epoxy coating suitable for potable water conBuried portions of the penstocks will be coated. Exposed portions of thepenstocks will be uncoated weathering type steel. Penstocks will be rinstiffened and rest on concrete foundation piers. The penstocks will termithe powerhouse.

3. A powerhouse constructed of reinforced concrete and enclosing the two and generators, medium voltage switchgear and controls. The powerhoufounded on rock and discharge to the natural stream channel just downstthe toe of the existing embankment dam. A tailrace channel will be excaapproximately 100 feet in length with a nominal tailwater elevation of 1,

4. Two state-of-the-art, high-efficiency Deriaz or high head Kaplan type tueach with a hydraulic capacity of 555 cubic feet per second at the design

185 feet. Design flow for the Pepacton Development is 1,110 cfs, with aminimum operating flow for one unit of 50 cfs.

5. Two direct coupled, vertical, synchronous generators each rated at 6,000at 0.8 power factor, 80C rise and operated at 6,250 kW (105C rise). Tooperating capacity for the Pepacton Development will be 12 500 kW


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7. Underground generator leads approximately 400 feet in length connectedkV to 46 kV substation with step-up transformer rated at 15 MVA, prima

breaker, lightning protection and protective relaying.

8. An aerial subtransmission line approximately 800 feet in length operatinkV.

9. Interconnection to an existing 46 kV subtransmission line owned by NewState Electric & Gas Corporation.

NEVERSINK DEVELOPMENTNeversink Development Existing Project Features An existing earth embankment with a concrete cutoff wall founded on ro

extending from the rock foundation up to an elevation of 160 feet below the dam at its center and slopes up to an elevation of 20 feet below the todam near the abutments. Construction of the dam was completed in 1953

impound the Neversink River, a tributary to the Delaware River, and creNeversink Reservoir, which was completed in 1954. The Neversink Reswas constructed by New York City as a water supply resource. The majospillway, located near the northeast end of the dam, is an uncontrolled sichannel spillway with an ogee crest. The side channel discharges into a clined tunnel, 30-feet in diameter. The crest of the waste weir is approximfeet long and the tunnel is approximately 1,435 feet long. The spillway celevation 1,440 feet.

The Neversink Reservoir extends approximately 5.4 river miles upstreama surface area of 1,500 acres and storage capacity of approximately 170,feet.

Existing distribution facilities along State Route 55 and an existing 4.8 ktransmission line.

Neversink Developmen t Proposed P roject Features1. An intake system consisting of four individual prefabricated steel intake

chambers, rectangular in shape with an inclined top opening composed opanels with 0.25-inch openings. Design velocity normal to the screen is per second. Each intake chamber will rest on the existing embankment d


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head limit. Normal headwater elevation ranges from a maximum of 1,44minimum operating level of 1,420 feet.

2. The conveyance system consists of a single steel penstocks, eight feet inoperated as a sub-atmospheric siphon from the reservoir level, at or belospillway elevation, to the pressure portion f the penstocks. Siphon eductoequipment, siphon break valves and control equipment will be located neapex of the penstock at the non-overflow embankment dam crest. The pewill be lined with epoxy coating suitable for potable water contact. Burieportions of the penstock will be coated. Exposed portions of the penstock

uncoated weathering type steel. The penstock will be ring stiffened anconcrete foundation piers. The penstock will terminate at the powerhous

3. A powerhouse constructed of reinforced concrete and enclosing the turbigenerator, medium voltage switchgear and controls. The powerhouse wifounded on rock and discharge to the natural stream channel just downstthe toe of the existing embankment dam. A tailrace channel will be excaapproximately 100 feet in length with a nominal tailwater elevation of 1,

4. A state-of-the-art, high-efficiency Deriaz or high head Kaplan type turbihydraulic capacity of 555 cubic feet per second at the design head of 185Design flow for the Neversink Development is 555 cfs, with a minimumoperating flow of 50 cfs.

5. A direct coupled, vertical, synchronous generator rated at 6,000 kilowattpower factor, 80C rise and operated at 6,500 kW (105C rise). Total ope

capacity for the Neversink Development will be 6,500 kW.

6. Medium voltage unit switchgear consisting of generator unit circuit breapotential transformers, current transformers and protective devices. Apprstation service equipment and excitation system. An automated control slinked in real time to the DCEC dispatch center.

7. Generator leads approximately 300 feet in length connected to a 13.8 kVkV substation with step-up transformer rated at 7.5 MVA, primary circulightning protection and protective relaying.

8. Interconnection to an existing 34.5 kV subtransmission line owned by NState Electric & Gas Corporation.


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Impoundment Information

Development

Normal Water

Surface Elevation

(feet MSL)

Surface

Area

(acres)

Storage

Capacity

(acre-feet)

Schoharie 1,130 1,150 95,575Cannonsville 1150 4,800 300,000Pepacton 1,280 6,400 430,000 Neversink 1,440 1,500 107,00

1.3. TURBINES AND GENERATORSEach of the four development sites will include construction of a new, overflowpowerhouse that will house the new generating equipment, which will consist ofthe-art, high efficiency Deriaz type turbines and vertical generators.


Design Parameters

Development Units

Hydraulic

Head

(feet)

Hydraulic

Capacity

(cfs)

Installed

Capacity

(kW)

Average

Annual

Generatio

(kWh)

Schoharie 4 165 2,100 23,500 23,900,00

Cannonsville 4 150 2,000 20,500 46,500,00Pepacton 2 185 1,110 12,500 16,700,00 Neversink 1 185 555 6,500 4,

1.4. TRANSMISSION LINESThe electrical grid interface for each development within the Western Catskills HProject is summarized below.


Electrical Grid Interface Information

Unit TotalStep-up

T fInterfac


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At each of the four development sites, the generator leads (13.8 kV) from the swwill exit the powerhouse underground to minimize aesthetic impact and for secu

safety considerations. The underground leads will terminate at the step-up substwhere voltage will be stepped-up to either subtransmission or transmission voltadelivery to the electrical grid system. Grid interface will occur at the end of asubtransmission line for the Schoharie Development and at the substations for thCannonsville, Pepacton and Neversink Developments.

1.5. LANDS OF THE UNITED STATESThere are no lands of the United States included within the proposed project bou

There are no known areas within or in the vicinity of the proposed project boundare included in or have been designated for study for inclusion in the National WScenic Rivers System.

There are no areas within the proposed project boundary that are known to be unprovisions of the Wilderness Act or that have been designated as wilderness are

recommended for designation as wilderness area, or designated as wilderness stu

1.6. PUBLIC INTERESTDCEC is a non-profit, rural electric cooperative serving over 5,100 members thrDelaware, Schoharie, Otsego and Chenango Counties of New York State. DCECof the over 900 electric cooperatives throughout the United States that serve

approximately 17% of the U.S. population and over 65% of the U.S. geography.to its corporate structure, DCEC is owned by the membership that it serves and,profit entity, is focused entirely on providing reliable, low-cost energy to its memwhile being good stewards to the local communities where its employees and direside.

DCEC intends to produce electric power by constructing the Western Catskills HProject to utilize the clean, renewable public resource available at the four devel

sites. It is anticipated that the power produced from the project will be used by Dserve its growing electrical demand of its residential, commercial and industrialmembership in the immediate area of the projects while selling surplus power inNew York Independent System Operator (NYISO).

DCEC currently relies on the New York Power Authority (NYPA) for its entire


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DCEC has initiated a strategy to hedge against the risks and costs of these issuehas included the development of innovative technology projects including load c

and peak shaving projects, the implementation of energy efficiency projects anddevelopment of local renewable energy projects. This strategy will allow the coto continue to deliver power to local communities at the lowest possible costs ansupporting environmentally responsible (and local) sources of power. Many of tproject initiatives, including the Western Catskills Hydro Project, will contributeNew York State Renewable Portfolio Standard.

DCEC is an industry leader in the development of renewable energy projects wi

experience in commercial wind energy, residential fuel cell installations, substatenergy storage (advanced battery systems for peak shaving), and landfill gas recusage (currently under construction) along with other project initiatives. The WeCatskills Hydro Project is part of the cooperatives overall portfolio to achieve thobjectives while supporting local economic development.


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EXHIBIT 2 DESCIPTION OF STUDIES2.1. STUDIES PROCESSDCEC will utilize in-house resources to provide financial and planning related sDCEC also intends to utilize the consulting services of Albany Engineering Corfor technical assistance in preparing, conducting or contracting the necessary stuthe proposed project. Albany Engineering has extensive experience in the develodesign, construction, commissioning, operation and maintenance of hydroelectri

facilities.

2.2. STUDIES TO BE COMPLETEDThe studies and related work to be completed will provide the applicant with thenecessary information to prepare the application for license and to progress the development plan to final design. All work will be conducted in a manner so as

affect cultural resources or endangered species, if any, and to cause minimal disto the land and water. Any land altered or disturbed will be adequately restored satisfaction of the owner. The applicant proposes to carry out the studies below determine the feasibility of the proposed project and support an application for lAs the studies are being conducted the applicant will consult with appropriate festate, municipal and local agencies. The exact scope and scheduling of studies wcoordinated in accordance with consultation related to the integrated licensing p

2.2.1 GENERAL PLAN A ND SURVEYA general plan and survey of the proposed project will be prepared to delineate topographic characteristics of each development site and approximate size, locaelevations of existing and proposed facilities. Review of pertinent New York CiDepartment of Environmental Protection documents and studies will be performeach development site.

2.2.2 GEOTECHNIC AL STUDIESAll available geotechnical studies performed for the dam and reservoir constructfour development sites comprising the Western Catskills Hydro Project will be rA current geotechnical analysis of reservoir shoreline slope stability will also beperformed at each site The analysis will include recommendations for improvem


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sampling. Water quality characteristics of interest will be primarily dissolved oxtemperature and flow. Field sampling will occur within the project vicinity. A fo

data collection phase will also be conducted post-construction.2.2.4 RECREATI ONAL STUDIESAnalysis will be performed to assess potential use of the project area for non-corecreational activities. Facilities to be analyzed will include shoreline fishing acpicnic areas with parking. All recreational access locations will comply with theAmericans With Disabilities Act. Consistency of the proposed project with relev

comprehensive plans will be considered. Only uses appropriate to NYCDEPrequirements for protection of water supply will be considered. It is noted that Nhas permitted non-contact use at all four reservoirs comprising the Western CatsHydro Project, including a current plan for allowing sailboat access specifically Cannonsville Reservoir.

2.2.5 HISTORIC AND ARCHAEOLOGICAL STUDIESAny previous Phase 1A Literature Review and Archaeological Assessment or Phfield survey of any areas identified as sensitive that have already been conductereviewed. An approved cultural resource management firm will perform the necdata collection and analysis for historic and archeological resources. This work winclude a Phase 1A Literature Review and Archeological Assessment and may iPhase 1B field survey of any areas likely to be disturbed at the four developmenthat are identified as sensitive.

2.2.6 FISHERIES AND WILDLIFE STUDIESField investigations will include a detailed reconnaissance by wildlife and fisherbiologists. Identification and mapping of species will be performed and reportedcollection will include compilation of species inventories and data, especially peto the trout species present as well as riverine warm water sport species.

A study will be conducted to characterize the existing wildlife resources within

development sites comprising the Western Catskills Hydro Project. Existing avawildlife resources information and data will be reviewed. Field reconnaissance swill be performed to characterize representative wildlife habitats and the speciescomposition, relative abundance, and overall health in the project area. Review winclude inspection of existing aerial photography for terrestrial communities prowildlife refuge in the project area, inspection of existing land use maps, and obs


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against habitat requirements of known wildlife from the region to develop the lispecies most likely to occur within the project area. Wildlife lists will be compilcommon species found in the project area.

2.2.7 PRELIMI NAR Y DESIGN STUDIESPreliminary engineering designs for each of the four development sites will be pto delineate the scope, cost and schedule for construction. A projection of energgeneration will also be made. The preliminary design data will be utilized in theeconomic analysis to be preformed for the proposed project sites.

2.2.8 ECONOMIC ANALYSESEconomic analyses of the proposed project will be performed. The analysis willestimates of power production and power sales rates. Economic criteria such as revenue, net present value and benefit/cost ratio will be determined.

2.3 ROADSSCHOHARIE DEVELOPMENTAccess to the Schoharie Development will be from an existing access road to thDam and spillway area. No new roads will be built for the purpose of conductinstudies referenced herein. No new road construction is presently anticipated to bnecessary to access the proposed new powerhouse and substation.

CANNONSVILLE DEVELOPMENTAccess to the proposed Cannonsville Development will be from the primary NYaccess road that leads off of State Route 10. The roadway provides access to therelease water chamber and to the dam and spillway crest. No new road construcpresently anticipated to be necessary to access the proposed new powerhouse ansubstation.

PEPACTON DEVELOPMENTAccess to the proposed Pepacton Development will be from the existing access traverses the top of the dam from State Route 30. No new road construction is panticipated to be necessary to access the proposed new powerhouse and substati


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2.4 NEW DAM CONSTRUCTIONThe proposed project will utilize the existing dams at the Schoharie, CannonsvilNeversink and Pepacton Reservoirs. Accordingly, a waiver of the requirements Section 4.81(c)(2) is requested because no new dam construction under the definSection 4.81(c)(2) is proposed.

2.5 SCHEDULE FOR STUDIESThe following schedule has been developed for conducting the studies and consu

specified herein and leading up to the submission of a license application to theCommission at the conclusion of the requested 36-month term of the permit. Thschedule assumes that a permit will be issued to the DCEC by June 2008. Basedwork to be performed under the requested permit, DCEC will make a determinawhether it is appropriate to follow the Integrated Licensing Process or request a for the Alternative Licensing Process.

Permit Issued July 2008

Perform Studies July 2008 June 20

Complete Initial Environmental Analyses November 2010

File Draft License Application December 2010

File License Application at FERC May 2011


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EXHIBIT 3 COST AND FINANCINGESTIMATED COSTSThe estimated cost of carrying out and preparing the studies, investigations, testsurveys identified in Exhibit 2 is $562,500, allocated as follows.

General Plan and Survey $ 50,000Geotechnical Analysis 80,000

Water Quality Analysis 67,500Recreation Study 67,500Historic and Archaeological Study 80,000Fisheries Studies 67,500Preliminary Design Study 100,000Economic Analysis 50,000

Total $ 562,500

FINANCIAL SOURCESThe applicant will provide the necessary financing to conduct the activities idenExhibit 2.

PROPOSED MARKETDCEC is a non-profit, rural electric cooperative serving over 5,100 members thrDelaware, Schoharie, Otsego and Chenango Counties of New York State.

DCEC intends to produce electric power by constructing the Western Catskills HProject to utilize the clean, renewable public resource available at the four develsites. It is anticipated that the power produced from the project will be used by Dserve its growing electrical demand of its residential, commercial and industrialmembership in the immediate area of the projects while selling surplus power in

New York Independent System Operator (NYISO).


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EXHIBIT 4 PROJECT MAPSThe following maps and preliminary drawings are provided for the proposed WeCatskills Hydro Project.

Drawing

No.Development Title

0001 Western Catskills HydroProject

Development Key Map/Drainage-Relationship

0002 Schoharie USGS Quadrangle Map0003 Schoharie Project Boundary Map0008 Schoharie Existing and Proposed Facilities M0009 Schoharie Section Along Penstock0010 Schoharie Intake System Plan0011 Schoharie Powerhouse Plan0012 Schoharie Section Along Waterway

0014 Cannonsville USGS Quadrangle Map

0015 Cannonsville Project Boundary Map0020 Cannonsville Existing and Proposed Facilities M0021 Cannonsville Section Along Penstock0022 Cannonsville Intake System Plan0023 Cannonsville Powerhouse Plan0024 Cannonsville Section Along Waterway

0026 Pepacton USGS Quadrangle Map0027 Pepacton Project Boundary Map

0032 Pepacton Existing and Proposed Facilities M0033 Pepacton Section Along Penstock0034 Pepacton Intake System Plan0035 Pepacton Powerhouse Plan0036 Pepacton Section Along Waterway

0038 Neversink USGS Quadrangle Map0039 Neversink Project Boundary Map0044 Neversink Existing and Proposed Facilities M

0045 Neversink Section Along Penstock0046 Neversink Intake System Plan0047 Neversink Powerhouse Plan0048 Neversink Section Along Waterway

20


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^_

^_

^_

^_

0

5

10

15

Miles

WesternCatskillsHydro

Project

DevelopmentKeyMap/Drainage-UseRelationship

Date

By

Drawing

4/21/2

008

EMH

0001

o

Stateof

Pennsy

lvania

Delaware

County

Sc

hoharie

County

Greene

County

Ulster

Count

y

Sullivan

County

Broome

County

Cannonsv

illeDevelopment

(Cannon

svilleReservoir)

PepactonDevelopme

nt

(PepactonReservoir)

NeversinkDevelopment

(NeversinkReservoir)

SchoharieDevelopment

(SchoharieReservoir)

ToNYC

ToNYC

^_

Developments

Aqueduct

River/Creek

CountyBoundaries

*DrainagetoNonDevelopmentReservoirs

NotShown

forClairity

Ne

w

York

State

Delaware County Electric Cooperative application to FERC

Documents

Transcript of Delaware County Electric Cooperative application to FERC