Is dam removal good business for Berkshire shareholders?

Removing the dams makes good business sense by any standard, and restores one of America's greatest rivers at the same time. Economic analyses indicate that removing the Klamath dams and buying replacement power will cost up to $289 million less than the federally mandated mitigation measures required for re-licensing.

Because this discrepancy is so high it is likely that re-licensing costs will not be recoverable through the state Public Utilties Commissions (PUCs) in Oregon and California. The California Energy Commission (CEC) has already sent letters to the PUCs requesting that they avoid approving rate hikes for keeping the Klamath dams. If the costs associated with re-licensing are not deemed "reasonable and prudent" by state PUCs, shareholders will be forced to absorb the costs of fish ladders and other mitigation structures, which could be up to $415 million, according to the CEC. Back to homepage.

Economics: The CEC report | The FERC report

Press : Hemscott Investor Research | Trading Markets | Seattle Times

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