Maroon Creek Federal Energy Regulatory Commission (FERC) Relicense

Project Overview:

The City of Aspen, Colorado (Aspen) hereby files its Notice of Intent (NOI) to file an application to continue to operate Maroon Creek Hydroelectric Project, FERC Project No. 10441, under a subsequent license for a minor water power project (§4.60) or under a small hydroelectric power project exemption from licensing (§4.101). Aspen understands, and will emphasize to stakeholders during pre-filing consultation, that the “exemption” is, in fact, an authorization from FERC and requires compliance with not only the terms and conditions of the authorization, but the continued oversight from FERC to comply with other applicable federal laws and regulations, including, for example, the Endangered Species Act and the National Historic Preservation Act. Aspen intends to use the Traditional Licensing Process and the pre-filing consultation with stakeholders to evaluate both options for subsequent authorization.

Project Background:

The Maroon Creek Hydroelectric Project has been in operation since 1988 under a license from FERC. The existing license expires in 2028, and as required by regulation, Aspen must submit a Notice of Intent to FERC to continue plant operations. The notice is required five years in advance of the license expiration date. The project has served as a key element in Aspen’s portfolio of local energy sources, and along with other local hydroelectric generation, allowed Aspen to become one of the first three electric utilities in the nation to achieve delivery of 100% renewable energy to its’ electric customers. The characteristic availability of hydroelectric energy allows scheduling to be accomplished on a predictable basis. Balancing supply and demand was an important consideration in Aspen’s selection of a strategy to make newer renewable energy sources, such as wind, more reliable. The balanced mix of energy types enabled Aspen to reach its’ goal of 100% renewable energy beginning in 2014. The newer sources added by Aspen were intermittent in nature and presented difficulty in scheduling to precisely match customer demands. Currently at a national level, there is a similar emphasis in facilitating the switch from fossil fuel energy sources to renewable sources such as wind and solar in order to reach climate related goals. The switch at a national level presents similar challenges in balancing energy supply with demand and must be accomplished on a strict timetable.

A high percentage of the nation’s hydroelectric generation capacity is aging and many permits will expire in the next decade. Ensuring continued generation of power from the existing national hydropower fleet over the long term requires reinvestment as these plants age. As with the strategy selected locally, matching these requirements will require the continued availability of a reliable base load source such as hydroelectric power. Recognizing the challenge of financing the needed improvements, Congress passed amendments to the Federal Energy Policy Act of 2005 as part of the Inflation Reduction Act. Those amendments provide for substantial financial benefits for maintaining and increasing power generation at existing dams. Expansion of the generating capacity at Maroon Creek and other hydroelectric power sources owned by the City of Aspen is anticipated to qualify for this federal assistance. Aspen proposes to study the addition of increased generation at the Maroon Creek facility. This project alternative is known as the Maroon Creek Micro Hydro proposal. The timing of an application for federal financial assistance matches the requirements for relicensing and Aspen anticipates pursuing both at the same time.