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<br />~l <br />I <br />I <br />l <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />J <br />J <br />J <br />J <br /> <br />3.0 PROJECT BACKGROUND <br /> <br />In 1981, the District received notice from <br />Reclamation of repairs required to Lemon Dam. <br />in 1982 the District began reserving $12,500 in <br />accumulate a fund for the dam repairs. <br /> <br />the Bureau of <br />Accordingly, <br />its budget to <br /> <br />Meanwhile, the District had been contemplating instal- <br />lation of a hydro power plant at Lemon Dam for a number of <br />years. In the late 1970's a project developer filed for and <br />received a FERC preliminary permit on Lemon Dam which was held for <br />two years. The developer studied a large power plant which would <br />utilize high summer releases and found the project to be infea- <br />sible. <br /> <br />In 1983, after the previous permit expired, the District <br />and HWE performed an appraisal level study to investigate the <br />possibility of installing a small turbine that utilizes a small <br />bypass pipe in the gate chamber of the dam. This plan did not <br />require major structural changes to the dam or any changes to the <br />existing power distribution system. The appraisal study indicates <br />that the project was economically justified using the relatively <br />low market rate of $0.035 per kilowatt hour. Further, retrofi:- <br />ting the power plant could be combined with the required dam <br />repairs. <br /> <br />At the conclusion of the appraisal study, the District <br />received notice that another private developer had submitted <br />an application to FERC for a preliminary permit on the site. <br />The District filed a competing application with municipal pre- <br />ference and received the preliminary permit on March 15, 1984, for <br />a period of 18 months. <br /> <br />3.0-1 <br />