A new study commissioned by the Chesapeake Bay Foundation and The Nature Conservancy shows Exelon Generation Company can mitigate a substantial portion of environmental impacts caused by its Conowingo Dam operation on the Susquehanna River, while continuing to make a healthy profit.

"The good news that comes with this report is that Conowingo's environmental performance can be brought into the 21st century with effective mitigation measures while the dam continues to provide low carbon energy and Exelon receives a reasonable return on its investment," said Mark Bryer, TNC's Chesapeake Program Director.

The report, "An Economic Analysis of the Conowingo Hydroelectric Generating Station," examined the dam's revenues and expenses, various flow scenarios, market prices, and rates of return.

It concluded Conowingo generates sufficient revenue to provide $27 million to $44 million annually in "headroom for remediation" depending on flow regimes and energy prices.

Exelon said in a statement, “Exelon’s goal is to continue to operate Maryland’s largest source of renewable electricity - the Conowingo Dam - safely and reliably through the latter part of the century, while continuing to work with key stakeholders to ensure the long-term health of the Lower Susquehanna River and the Chesapeake Bay. 

“The dam provides significant benefits to the region, as confirmed by the more than 50 studies conducted since 2010 that came to this same conclusion.

“While we are still reviewing the study published today, its estimates of the dam’s future revenues and profitability are based on a number of flawed assumptions and theories, and don’t align with Exelon Generation’s own projections based on its 90-year ownership of the dam. It’s important to note that Conowingo’s operations do not generate sediment. Most of the sediment that impacts the Bay comes from upstream sources.  As such, the regional sources of sediment across the basin should take joint responsibility for the issue, not a single company or entity.

“As with all of our operations, we are committed to being a good neighbor. In 2016, Exelon Generation and the U.S. Fish and Wildlife Service announced an agreement for fish passage improvements at the Conowingo Dam over the next 50 years at an estimated cost of up to $312 million, which will jumpstart the restoration efforts of American shad in the Susquehanna, among other environmental improvements.

“We are a proud member of the Chesapeake Bay community and remain committed to help find the most innovative and effective ways to address the health of the Chesapeake Bay.”

The CBF/TNC report was conducted by Energy+ Environmental Economics of San Francisco, California, for the Water Power Law Group, CBF, and TNC. It was released prior to a public hearing Tuesday by the Maryland Department of the Environment on the Conowingo pollution issue.

"More pollution will come through the Conowingo Dam and into the Bay than scientists previously calculated," said CBF President Will Baker. "Exelon has the responsibility and revenue to pay for its share of the solution."

Conowingo Dam is the largest dam on the Susquehanna River, which is the largest river on the East Coast of the U.S. The dam and its reservoir contribute to downstream water quality degradation in the Chesapeake Bay.

The dam's operation dramatically impacts habitats in the river and Bay, and populations of migratory fish, freshwater mussels, and underwater grasses, all of which have vital economic and ecological value.

For decades, the Conowingo Dam acted as a drain stop to trap significant amounts of sediment and nutrient pollution flowing from farms, sewage plants, and other sources upstream in the Susquehanna River watershed.

But the reservoir behind the dam nearly has filled up, and earlier than was expected. Big storms scour some of that pollution from behind the dam and into the Chesapeake.

Recent studies affirmed that while most of the sediment and phosphorus in the dam reservoir originates upstream, the dam itself also worsens downstream water quality because it alters the form of the sediments and phosphorus and the timing of their discharge.

Other studies have shown that Conowingo discharges water in a way that is more harmful to fish and habitat than average dams elsewhere.

Exelon has filed an application with the Federal Energy Regulatory Commission for a new operating license for the Conowingo Dam. Under federal law and FERC's relicensing process, Exelon is required to obtain a Clean Water Act Water Quality Certification from MDE. Exelon must demonstrate that the dam's operation meets

Maryland's water quality standards. MDE will hold a public hearing on the certification today, December 5, 2017. The public has until January 15, 2018 to submit written comments.

CBF and TNC both are scheduled to testify at the public hearing.

They will urge that MDE require Exelon to: 1) mitigate the harm the dam causes to downstream water quality, including a financial contribution to mitigate sediment and nutrient pollution; 2) make operational changes to restore safe and effective habitat for migratory fish like American shad and striped bass–and for keystone species like freshwater mussels and aquatic vegetation; and 3) make structural investments to restore fish passage connectivity to upstream spawning habitats.

A copy of the study is available online.

For more on Chesapeake Bay-related issues in Pennsylvania, visit the Chesapeake Bay Foundation-PA webpage.  Click Here to sign up for Pennsylvania updates (bottom of left column).  Click Here to support their work.

NewsClips:

Environmentalists Ask Exelon To Pay For Conowingo Dam Sediment Cleanup

Environmental Groups Say Conowingo Operator Can Afford To Help Stop Sediment

CBF: Study Finds Exelon Can Make Contributions To Mitigate Impacts Of Conowingo Dam

Growth Projections To Be Used To Adjust 2025 Chesapeake Bay Pollution Reduction Goals

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[Posted: Dec. 5, 2017]

12/11/2017