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The Controversial Effects of Instream Flow Determinations W. B. Smith, P.E. Past President of the National Hydropower Association, and Senior Vice President of Hydropower Benham-Holway Power Group Tulsa, Oklahoma The controversy over instream uses of water has become a major issue in the bal- ancing of power production and environmental preservation as defined in the Electric Consumers Protection Act (ECPA). The effects of minimum instream flow re- quirements can impact a hydropower facility by reducing potential power production, increasing costs associated with the operational recordkeeping, and increasing costs for studies required to determine the effects of minimum flows in preparation for filing an application for a new Federal Energy Regulatory Commission (FERC) license. The pri- mary environmental areas where minimum flow determinations are addressed in FERC licenses include wetlands, waterfowl management, habitat loss, and recreational use of water. These intensely focused environmental issues that must be addressed are dis- couraging hydropower developers during the initial licensing process. Balancing energy needs and environmental concerns necessitates a seemingly endless review by appli- cants for new licenses (relicensing) when deciding the feasibility of continuing the operation of existing low-cost hydropower facilities. The increasing costs of environ- mental mitigation and enhancement are rapidly creating a negative impact on the future development of hydropower capacity in this country. The loss of power production as a result of minimum streamflows requires a more defined operating analysis in the early stages of licensing and relicensing to determine whether the project is or will remain economically feasible. The minimum flow re- quirements also necessitate the development of a more detailed operating scenario before construction of a licensed project. This ensures that the estimate of average annual energy production and dependable capacity presented to the purchaser are established at a conservative point in order to maintain agreements established in power sales contracts. The requirement to establish minimum flows can reduce storage which will decrease the amount of dependable capacity available, thus lowering the plant factor. Even at navigation locks and dams on the American waterways system, environmental resource agencies now sometimes require minimum flows in addition to the leakage and lockage losses. The reduction of energy and capacity during the peak periods by storage drawdowns, on a continuous basis, may also significantly impact overall system capabilities throughout the country. In many cases, a ponding or designated storage operation at existing facilities was the basis for establishing feasibility of the projects. Minimum continuous flow requirements may require that peaking plants be converted to run-of-river projects, thus changing the original intent of these projects and degrading their value. With the establishment of minimum flow requirements by resource agencies, FERC is required to incorporate new articles into the licenses for monitoring minimum flow compliance. Minimum flow requirements are to be monitored on a continuous basis and deviations from minimum flows are to be reported immediately to FERC. In those Rivers • Volume 1, Number 1 Pages 3-5 3 '?