The Value of a River
Renowned Economist, Michael Shuman, says state ownership of the four hydroelectric dams on the Yadkin could result in more than $1.2 billion in additional state revenues, and the creation and addition of 14,000-75,000 jobs.
Yadkin Riverkeeper, local county commissioners, citizen interest groups and North Carolina law makers enter the fifth year of legal challenges and fierce opposition to prevent Aluminum giant Alcoa from receiving a 50 year license from the Federal Energy Regulatory Commission (FERC) to control four hydro-power dams located on the Yadkin River. According to proponents of local control of the river, Alcoa is a multinational corporation that presently monopolizes and exploits the Yadkin River’s hydroelectric capacity for its bottom line, with little in return to the people of North Carolina.
Because the cost of generating hydropower is relatively low and the price of electricity is high, Alcoa enjoys an after-tax profit of at least $7 million to $8 million per year. Alcoa has applied to the Federal Energy Regulatory Commission (FERC), the agency responsible for the licensing of public to continue reaping those funds.
“If the public is supposed to be the true beneficiary of this resource, it is important for the public to understand the value of this important natural resource that belongs to the citizens of NC, said Yadkin Riverkeeper, Dean Naujoks. “But how do you measure the economic value of a river?”
While there is no simple formula, nationally-known economist Dr. Michael Shuman has come up with some intriguing projections for North Carolina’s second largest river system, the Yadkin.
Commissioned by Central Park N.C., a regional sustainable development organization, Shuman has conducted a five-month study to compare the economic outcome if North Carolina can “recapture” the federal license to operate four hydroelectric dams on the river, rather than Alcoa Power Generating Inc., getting the license for another 50 years.
Shuman’s report concludes that if the state received the standard 50-year federal license to operate hydroelectric facilities on the river, and implemented proper oversight of them, the setup can result in more than $1.2 billion in additional state revenues, and the creation and addition of 14,000-75,000 jobs. Click here to read more
US Supreme Court Ruling in PPL Montana, LLC v. Montana
How this ruling may affect Alcoa Re-licensing of Yadkin River Dams
February 27, 2012
Press Advisory
By Dean Naujoks
Last week, the U.S. Supreme Court sent a case back to the State of Montana for their courts to decide which sections of river beds in that state were owned by the state. Montana is directed to determine ownership by looking at “navigability,” which sections of these rivers were passable by boats. Justice Kennedy decided to go beyond what was needed to decide the case and added some passing remarks at the end. After deciding the issues, the Court said that Montana’s failure to charge rent for use of the river beds should be evidence that the rivers themselves were not passable by boats.