The Federal Energy Regulatory Commission has relicensed the 137.65 MW Spokane River project, including five hydroelectric developments on the Spokane River in Washington and Idaho.

Licensee Avista Corp. and the Coeur d’Alene Tribe reached a settlement agreement in support of relicensing the project (No. 2545) in late 2008. (HydroWorld 12/18/08) A collaborative effort by Avista, the tribe, and the Department of Interior led to the settlement, which covers the utility’s past and future use of tribal land and water in the operation of the Spokane River projects.

The 50-year license includes new conditions requiring aesthetic flows at projects in the downtown Spokane, Wash., area, increased minimum flows from 14.75-MW Post Falls Dam, and recreation water levels on Coeur d’Alene Lake. Other conditions, such as water quality improvements, enhancements to fisheries, wetlands mitigation, and recreation improvements, are to occur on a timeline set out in the license.

Avista said June 18, 2009, that it has 30 days to review the license and determine whether to request a rehearing from FERC.

In addition to Post Falls, other developments in the project include 10-MW Upper Falls, 14.82-MW Monroe Street, 26.34-MW Nine Mile, and 70-MW Long Lake.

The settlement agreement provides for payment over the life of the relicense of more than $150 million for environmental measures at Coeur d’Alene Lake and for compensation to the tribe. Avista noted the agreement calls for the tribe and the utility to work cooperatively to plan, design, and implement projects to satisfy license conditions.

The accord also addresses rights-of-way for transmission lines over tribal lands and future storage payments connected to a new FERC license for Post Falls. Avista is to make payments to the tribe for past and future uses of submerged tribal lands and to satisfy Avista’s obligation to mitigate the effects of the Post Falls Dam on the tribe’s resources on its reservation.

Compensation to the tribe for past storage of water totals $39 million, paid over three years once agreements have been finalized. Avista and the tribe also agreed on compensation for ongoing storage of water, including $400,000 per year for the first 20 years of the new license, followed by annual payments of $700,000.

Avista also agreed to create a Coeur d’Alene resource protection trust fund, to be initiated upon the utility’s acceptance of the relicense. Avista said it would place a total of $100 million into the fund over the license term. Avista said it will propose to reflect costs, over the life of the license, in its retail rates to consumers in filings with state regulatory commissions.