The Federal Energy Regulatory Commission (FERC) Wednesday denied a Haines man’s preliminary permit application for the Walker Lake hydroelectric project and instead awarded the permit to the Tlingit and Haida Regional Electric Authority (THREA).
Timothy Welch, chief of FERC’s West Branch Division of Hydropower Licensing, issued the decision denying Southern Energy Inc.’s permit application. Southern Energy is owned by John Floreske of Haines.
At the center of the dispute between THREA and Floreske was Floreske’s contention that THREA is a “hidden hybrid” applicant attempting to unfairly take advantage of a federal municipal preference rule, which gives priority to permit applications submitted by public entities over private ones.
Welch disagreed with Floreske’s characterization and said even if THREA is a “hidden hybrid,” it doesn’t matter at this stage.
“The record indicates that the Authority filed an independent permit application. In any event, it is Commission policy not to investigate allegations of hidden hybrid applications at the preliminary permit stage,” Welch wrote.
THREA was reorganized to an electric cooperative known as Inside Passage Electric Cooperative, Inc. (IPEC) in 2004. THREA and IPEC have the same board members, but THREA is a non-profit owned by the central council, while IPEC is a cooperative owned by customers, said IPEC CEO Jodi Mitchell.
Mitchell said in an interview Wednesday “justice was served” in the FERC decision.
IPEC and THREA board member Larry Beck reported several weeks ago that THREA was intending to rescind its preliminary permit application. Mitchell confirmed Beck’s report, but said the FERC decision changes things.
“Even though that is what was discussed and what (Beck) said was accurate, this news puts a new spin on it,” Mitchell said.
Mitchell said a THREA board meeting is tentatively set for July 12 to discuss the FERC ruling.
When contacted Wednesday, THREA board president Richard George said the FERC ruling was news to him and he needed to talk to the board before speculating about what the ruling might mean for the organization.
Floreske did not return multiple calls for comment.
A preliminary permit determines who is first in line when applying for the actual FERC construction permit.
THREA has been jockeying with Floreske for the project’s preliminary permit since THREA applied for a competing permit in June 2012.