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Title: Methods for Valuation of Environmental Costs and Benefits of Hydroelectric Facilities : A Case Study of the Sultan River Project : Final Report.

Technical Report ·
OSTI ID:6564847

The Bonneville Power Administration is required by the Pacific Northwest Electric Power Planning and Conservation Act (Public Law 96-501) to include quantifiable environmental costs and benefits of alternative electric power resources in determining their cost-effectiveness. In responding to this requirement, BPA has contracted to develop and test methodologies for valuing environmental costs of various types of power resources, including hydroelectric facilities. The purpose of this study is to develop and test valuation methods for hydroelectric facilities, using the Sultan River Project as a case study. The case study approach offers several advantages and some disadvantages which should be considered in interpreting this report. Its primary advantage lies in providing a real-world example against which to test theoretical valuation approaches. Using data that were actually collected for a project that has received detailed scrutiny from its sponsor and from numerous regulatory agencies allows more realistic formulation of valuation issues and also provides a better test of the practicality and usefulness of valuation methods. On the other hand, results derived from such an approach must be used with discretion. First and most obvious, both the features of a hydroproject and its environmental impacts may vary widely from site to site. Second, it cannot be assumed that the results of these test exercises for the Sultan River Project represent any kind of generic hydroelectric environmental cost. A third caution is directed to those who may be tempted to regard this report as a definitive estimate of the environmental costs of the Sultan River Project. It is not. A fourth important point is only external or residual environmental costs are developed in this report. Finally, it should be noted that these methodologies were developed to meet the needs of BPA's process for determining resource cost-effectiveness.

Research Organization:
BioSystems Analysis, Inc., Sausalito, CA (USA)
Sponsoring Organization:
United States. Bonneville Power Administration.
DOE Contract Number:
FC79-83BP11189
OSTI ID:
6564847
Report Number(s):
DOE/BP-266; ON: DE84016651
Resource Relation:
Other Information: Portions are illegible in microfiche products. Original copy available until stock is exhausted
Country of Publication:
United States
Language:
English