AmerenUE settles Bagnell Dam lawsuits in bid for license renewal

The privately owned electric utility agreed to operational changes and mitigation payments to obtain a 40-year renewal of its operating license.

JEFFERSON CITY--Anglers, farmers, boaters and property owners around Lake of the Ozarks stand to reap millions of dollars worth of benefits and long-sought concessions in how AmerenUE operates Bagnell Dam if federal regulators approve a deal worked out by conservation officials and the private utility company.

The company announced May 18 that it had signed the agreement with state and federal agencies to clear the way for a new operating license for the dam and associated Osage Hydroelectric Power Plant. The Federal Energy Regulatory Commission (FERC) must approve the agreement before it becomes binding.

The agreement requires AmerenUE to make one-time payments totaling $1.3 million to settle lawsuits by the Missouri Department of Conservation and the Missouri Attorney General's office. Those lawsuits stemmed from a 2002 incident that killed more than 43,000 fish at the hydropower facility.

Conservation Department Assistant Director Denise Garnier called the agreement "an enormous step forward in how we balance the needs of lakes and rivers."

"Past operations at Bagnell Dam have not always placed enough value on hunting, fishing, boating, farming and the other ways that people use Lake of the Ozarks and the Osage River," said Garnier. "This agreement will help ensure that values in addition to power generation and flood control are considered when deciding how to operate the plant."

Garnier said the agreement will result in major gains for fish, wildlife and other natural resources in the Osage River Basin over the 40-year term of the license.

In addition to money AmerenUE agreed to pay to settle the Conservation Department and Attorney General's fish-kill lawsuits, the St. Louis-based Utility agreed to pay: --$309,000 annually for the term of the license to mitigate biological impacts of dam operation. --$350,000 to the Missouri Department of Natural Resources (DNR) annually for six years (a total of $2.1 million) to manage shoreline erosion and provide services and amenities at state parks on the lake. --$15,000 annually for five years (a total of $75,000) to study bacteria levels in Lake of the Ozarks coves.

Just as important, say conservation officials, AmerenUE agreed to: --Maintain the water level at Lake of the Ozarks according to an established seasonal schedule that includes an elevation of 659 feet from May 22 through Sept. 9 annually, 658 feet from Sept. 21 to Dec. 10 and 654 feet from Feb. 15 to April 1. --Follow seasonal minimum-flow guidelines designed to more closely reflect flows necessary for survival of fish and mussels. Deviations will be allowed to meet flood-control needs and permit access to islands for agricultural purposes. --Give more consideration to boating and other recreational river use in determining water discharge rates from the dam. --Install barriers above the dam to help prevent the death of fish due to hydroelectric generation. --Increase dissolved oxygen levels in water released from Bagnell Dam to meet state water-quality standards. --Build or maintain existing scenic viewing areas at Wilmore Point, Bagnell Dam and Bagnell Dam Overlook and continue to support Wilmore Lodge. --Develop a storm-water pollution prevention plan to address concerns about nonpoint source pollution due to land development. --Conduct a recreational needs assessment in cooperation with the DNR. --Identify and limit development on sensitive shoreline critical to fish and other water animals. --Reduce bank erosion on the Osage River downstream from Bagnell Dam by reducing the rate at which excess water is released from Lake of the Ozarks after flood events. --Establish permanent lake and river gauges to monitor water level and quality and make the information available daily via the Internet. --Conduct annual sampling of water-dwelling animals to assess their abundance and variety as a measure of ecological health.

AmerenUE began negotiating the agreement five years ago as part of its bid to win a new operating license for the dam and power plant. Its current license expires Feb. 28, 2006. That license dates to 1981. The previous license was granted in 1931. Consequently, this is the first time in almost 25 years that dam operations have been examined in light of recent concerns about water quality, fish and wildlife conservation, erosion, lake and river recreation and other issues.

The requirement for a license is based on the fact that AmerenUE uses a public resource-the Osage River-for its operations. The relicensing process is administered by the FERC. It requires utilities to take a broad range of values and impacts into account when planning dam operations and gives other government agencies an important role in protecting the public interest.

Agencies involved in the review and the agreement with AmerenUE include the Conservation Department, the DNR, the Missouri Attorney General's office, the U.S. Fish and Wildlife Service and the National Park Service.

Besides a new, 40-year license, AmerenUE hopes to receive permission to install two new turbines. The company says these turbines will add 15 megawatts to the plant's existing 226 megawatt capacity and enable it to generate more power with less water.

The original building of Bagnell Dam and resulting creation of Lake of the Ozarks effectively eliminated reproduction of paddlefish on the river. Annual payments of $134,000 from AmerenUE will pay for artificial rearing and stocking of paddlefish and other species by the Conservation Department. Annual payments of $175,000 will enable the Fish and Wildlife Service to restore habitat and repair and prevent island erosion from water level changes caused by hydroelectric generation.

-Jim Low-

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