Licensing proposed hydro project keeps SMUD's options opened
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The Slab Creek Reservoir, part of SMUD's Upper American River Project hydroelectric development, would supply the water for the proposed Iowa Hill pumped storage facility. (photo courtesy of Sacramento Municipal Utility District)
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When Sacramento Municipal Utility District applies to renew the hydroelectric operating license for its Upper American River Project , the application will include the Iowa Hill pumped-storage facility, even though it does not exist—yet.
The board of directors has not approved construction of the proposed project, either, and if they do, it wouldn't come on line before 2013. But by performing necessary studies for Iowa Hill during the Federal Energy Regulatory Commission review process, SMUD will save several million dollars in process costs. "Incorporating the proposed facility into the UARP application will add about $1 million to the 2003 relicensing budget," hydro relicensing project manager David Hanson explained.
SMUD's original 50-year license to operate the hydroelectric system will expire in 2007, and the utility intends to submit its relicensing application in 2005. "If we wait until after the license is granted, we will have to petition FERC to amend it, and that could cost from $5 million to $10 million," said Hanson.
Pumped storage would increase SMUD-generated renewable energy
In the earliest stages of a project intended to protect ratepayers from volatile energy markets and uncertainties about the future course of deregulation, SMUD is thinking ahead and thinking big. The proposed pumped storage development could generate of up to 400 megawatts, significantly increasing the UARP's existing 688-MW capacity.
In a presentation to the integrated resources and customer services committee, Hanson told directors that the facility would consist of an underground powerhouse built into Iowa Hill, next to the Slab Creek Reservoir. To feed the new powerhouse, SMUD would build a 100-acre, off-stream storage reservoir atop the hill, some 1,200 feet above the reservoir.
Water would be pumped from Slab Creek Reservoir up to the new reservoir when electricity costs are lowest—typically at night—or when surplus power from renewable resources is available. During the day, when air conditioners are laboring and power demand is highest, water would be released from the hilltop reservoir to flow down through the turbines, generating a tremendous amount of clean electricity. "One of the great things about the project is that we would not be damming any streams," said Hanson. "SMUD could resolve about half its unmet future power needs with very little environmental impact."
Wind plus water equals super clean generation
Coupling another form of renewable energy with the hydro development would reduce the environmental impact of Iowa Hill even more. Much of the electricity for the pumping station may come from SMUD's Solano County wind farm. There, it turns out that the most consistent wind is after sunset. "The on-going challenge of wind energy, of course, is that the wind blows when it blows. Pumped storage creates a kind of battery for the wind farm," Hanson observed.
Using wind to power the Iowa Hill pumps adds a new twist to an idea SMUD has been considering since 1972. The Bechtel Corporation performed preliminary studies on the project, including geological and geoseismic surveys. SMUD already owns the land, so acquiring the site would not add anything to the projected $400 million cost of construction.
Whether the board will approve such a massive project is a question for the future. The decision to build the Iowa Hill development would have to come around the time FERC grants SMUD its new license. "We'll have to look at all the available options and weigh the investment against the benefits to our customer-owners," said Hanson.
Sacramento residents are in good hands. Any utility that includes a proposed facility in its relicensing process just to save a few million dollars knows how to think ahead, keep its options open and look out for its customers' best interests.