PPL Reapplies For Holtwood Hydroelectric Plant Expansion Project

PPL announced this week said it will file a new application with the Federal Energy Regulatory Commission for a project that would add 125 megawatts of clean, renewable electric generating capacity at the Holtwood hydroelectric plant on the Susquehanna River in Lancaster County, Pa.

 

"PPL has reconsidered this project in view of the tax incentives and potential loan guarantees for renewable energy projects that are in the federal economic stimulus package,"  said William H. Spence, executive vice president and chief operating officer of PPL Corporation. "These stimulus package benefits could make the project feasible again by more than offsetting the factors that caused us to withdraw our original application in December, and the further decline in future energy prices since that time."

 

Citing economic conditions, tightening credit markets and projections of future energy prices, PPL in December withdrew an initial application to expand Holtwood.

 

The estimated $440 million project would add enough new renewable energy generation to power 100,000 homes and improve fish lifts that enable migratory fish to reach spawning areas upstream of the Holtwood Dam along the Susquehanna River and its tributaries. It could create nearly 500 construction jobs.

 

"We're looking forward to resuming work with the many government agencies, private organizations and individuals who have supported this project," Spence said. "While there are some significant regulatory and other hurdles to clear, we may be able to put this new, renewable electric generating capacity in service by the spring of 2013."

 

Subject to approval by FERC and other government agencies, availability of the necessary stimulus package incentives and negotiation of the related contracts, construction could start in February 2010.

 

Holtwood has been generating electricity since 1910. Currently, it generates 108 megawatts using the power of the water held back by a 55-foot-high dam. The dam creates Lake Aldred, an 8-mile reservoir that provides opportunities for boating, fishing and other public recreation.

 

PPL operates two campgrounds, 39 miles of hiking trails, several picnic areas, and other facilities including the well-known Shenk's Ferry Wildflower Preserve and Lock 12 Historic Area.