Sabine River Authority Issues •FERC Relicensing of the Toledo Bend Project –Hydroelectric Power Generation •Drought •Hydroelectric vs. Water Supply Re-Licensing the Toledo Bend Project – – – – – Current license issued Oct.1963 – Expires Sept. 2013 Filed NOI/PAD September 22, 2008 Preparing license application 2008 – 2011 File license application September, 2011 Re-licensing could affect all levels of Operations • Lake levels • Downstream releases • Water supply yield • Water releases for instream flows and bays & estuaries • Hydroelectric power production • Construction/Permitting within Project Boundary FERC Relicensing Challenges • In the early 1960’s, the Clean Water Act, the National Environmental Protection Act, and the National Historic Properties Act had not been enacted. • Before FERC will issue a new license for Toledo Bend, all those Acts must be complied with. • It is the responsibility of the licensee’s (SRA-TX and SRA-LA) to prove the project is in compliance. Sabine River Basin Facts •Length – 560 miles •Drainage Area – 9,952 sq. mi. 25% in Louisiana 75% in Texas •Boundary reach covered by Sabine River Compact. •Available water from the boundary reach down is split equally between States. •Toledo Bend Dam is located 147 miles from top of Sabine Lake. •Average Inflow into Sabine Lake – 5,982,000 Ac-ft/yr Toledo Bend Project • Water Supply • Hydroelectric Power • Recreation Toledo Bend Reservoir Federal Energy Regulatory Commission – Project No. 2305; license issued 1963 (LA & TX) 185,000 surface acres Max Power Pool Elev 172.0 ft MSL Storage Capacity 4,477,000 acre-feet Average Inflow 4,200,000 acre-feet/year Shoreline 1,200+ miles Drainage Area 7,190 sq. miles Water Volumes • 1 Acre-foot = 325,848 gallons • Toledo Bend Reservoir • 4,476,951 Acre-feet @ 172 ft. msl • 4,200,000 Acre-feet annual average inflow • Hydro Power Generation – 2 Units • 28,000 acre-feet per 24 hours • Haynesville Shale Hydrofracking • 6.5 million gallons/ 20 acre-feet • Evaporation Loss (Monthly) • August – 40,000 acre-feet “Firm Yield” • “The amount of water that can be supplied from a reservoir on an annual basis during the most critical drought period of record.” • Forest & Cotton, 1959 2,074,500 ac-ft • Brown & Root, 1991 2,086,600 ac-ft • TCB, 2005 1,908,000 ac-ft • Louisiana’s Portion 954,000 ac-ft Elevation and Volume Toledo Bend Reservoir 172 msl 4,476,951 ac-ft 171 msl 170 msl 4,297,776 ac-ft 4,123,426 ac-ft 169 msl 3,953,801 ac-ft 168 msl 3,788,901 ac-ft Elevation and Volume Toledo Bend Reservoir 172 ft-msl 168 ft-msl 688,000 AcreFeet 15% of Total Volume 16% of Average Annual Inflow LA SRA Water Sales (Toledo Bend Reservoir) • Existing Contracts Annual withdrawals: 27,589 ac-ft/yr Additional options: 37,940 ac-ft/yr Contracts total: 65,529 ac-ft/yr Haynesville Shale (projected) 36,500 ac-ft/yr • Non-Allocated Water 851,971 ac-ft/yr Power Generation vs. Water Supply • Power Sales Agreement – Expires 2018 – Notice of Termination due 2015 – Power Sales Revenue accounts for 40% of total SRA Revenue • Water Supply – Toledo Bend: • Accounts for 12% of SRA Revenue – Diversion Canal • Accounts for 34% of SRA Revenue SRA Revenue FY 06 -FY 10 Other 14% SRD 34% Water TB 12% Power 40% Future Utilization of Toledo Bend Reservoir • SRA’s Board of Commissioners has adopted the strategy of developing water sales as an alternative source of revenue in lieu of hydroelectric power generation. • “Run of the River” for Power Generation – Environmental Flows – Controlled excess capacity releases Water Supply Proposal • Out-of-State Sale – Requires Governor’s Consent • 600,000 Acre-Feet Per Year • Maximum Monthly Withdrawal – 75,000 Acre-Feet/month – Equivalent to running 2-generators 2.67 days/month • Drought Contingency Plan Average Inflow Acre-Feet 1969 - 2010 Power Sales vs Water Supply 800,000 700,000 600,000 500,000 400,000 300,000 200,000 Power Sales Agreement 1,000,000 Acre-feet May - September 100,000 75,000 Ac-ft Max 0 600,000 Acre-Feet Maximum Annual Water Supply January (100,000) February March April May June July August September October November December Relative Value of Water for Hydropower vs. Water Supply (Based on one million acre-feet) Hydro $2,606,808 Approx. $.008 / 1000 Gallon Water Supply $48,877,650 $6 0, 00 0, 00 0 $5 0, 00 0, 00 0 $4 0, 00 0, 00 0 $3 0, 00 0, 00 0 $2 0, 00 0, 00 0 $1 0, 00 0, 00 0 $0 $.15 / 1000 Gallon Balancing Water Supply/Lake Level SRA-LA & SRA-TX • Inter-Basin Transfers – Present Law prohibits SRA-TX from transferring water outside the Sabine River Basin – Highly probable SRA-TX will be granted a permit to transfer 300,000 acre-feet per year outside the Sabine River Basin of Texas • SRA-LA will reduce its allocation to 300,000 acre-feet per year • Proposed Cooperative Agreement – In the event SRA-TX does not receive an Interbasin Transfer Permit, SRA-LA may enter into agreement with SRA-TX to purchase up to 300,000 acre-feet per year for lake-level mitigation and to balance operational budgets Water Supply vs. Hydroelectric CONCLUSION • Extensive Financial and Environmental Analysis have been conducted • Minimal Environmental Impact and Substantial Economic and Social Benefits • Consistent with purposes for which Toledo Bend was constructed • Consistent with the public trust mandate of Article IX, 1 of the Louisiana Constitution