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<br />CHAPTER I: WHY AND HOW <br /> <br /> <br />Hydroelectric operation has, in essence, been redis- <br />covered since oil supplies were interrupted in 1973. <br />Though hydroelectric generation is one of America's <br />oldest sources of electricity, its use decreased as <br />larger fossil fuel and nuclear generating facilities <br />produced more reliable and less expensive electricity. <br /> <br />There has been a substantial resurgence of interest in <br />hydroelectric generation in recent years. Because <br />hydropower is a renewable source of energy and does <br />not add to our oil imports or. balance of payments <br />problems, the Federal government has chosen to care- <br />fully examine the barriers and incentives that have <br />kept hydropower from developing in recent years. <br />Regulatory and tax laws have been changed to pave <br />the path for small scale hydro sites once again becom- <br />ing a viable part of our "mix" of electrical energy. <br /> <br />Hydropower has many inherent advantages: <br /> <br />It is a solar powered, renewable source of fuel. <br /> <br />Although the "fuel" supply is subject to natural <br />weather variations, the fuel costs are immune to <br />inflation. <br /> <br />There are no air, thermal, or other pollution by- <br />products. <br /> <br />It is a proven energy source, using a well-tested <br />technology. <br /> <br />The life of a dam and powerhouse is estimated to <br />be two to three times that of a fossil fuel plant. <br /> <br />Because of the relative simplicity of the equip- <br />ment involved, the operation and maintenance <br />costs are low compared to other electrical <br /> <br />3 <br />