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Montana's Libby Dam Project: More Study Needed Before Adding Generators and a Reregulating Dam

EMD-80-25 Published: Nov 20, 1979. Publicly Released: Nov 28, 1979.
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Highlights

The Army Corps of Engineers has proposed modifications to the Libby Dam in Montana to increase its generating capacity. The increased capacity would not produce more electricity than the existing facility, but would help meet high-demand daytime needs. The project has been the subject of controversy for several years. The Corps has contended that it is necessary to meet the peak power needs of the area. However, others have questioned whether the project would be economically and environmentally sound.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Army The Secretary of the Army should direct the Chief of Engineers to recompute and report to Congress the costs and benefits for the project, using the production cost model approach, taking care to select the authorized discount rate, valid power values, and all applicable costs.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Energy The Secretary of Energy, as part of the proposed study, should direct the Administrator of the Bonneville Power Administration (BPA) to conduct a comprehensive analysis of peaking alternatives in the region, including the proposed project. This study should measure the incremental effect of each alternative on the combined hydro-thermal system, and it should be the basis for prioritizing alternatives for implementation. In the longer term, BPA should routinely prepare and update the analysis of peaking alternatives. If options such as conservation, load management, and peak pricing prove to be economically feasible, BPA should develop and implement equitable methods to encourage utilities and electricity customers to adopt them.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Topics

DamsEconomic analysisElectric power generationElectric utility constructionEnergy costsEnergy demandHydroelectric energyHydroelectric powerplantsProgram evaluationWater resources development