Blumenthal Calls Shoreline Plans ‘Unacceptable’

By Kendra Bobowick

The Shoreline Management Plan (SMP) filed last week by power company Northeast Generating Services (NGS) has stirred a turbulent public reaction. Energy Capital Partners recently purchased NGS, a subsidiary Northeast Utilities. NGS holdings include competitive generation assets in Massachusetts and Connecticut, including 15 generating plants.

“Everyone has still got on their boxing gloves,” said Lake Lillinonah Authority Chairman Bryan Piepho. “I am still disappointed with what the utility did. They don’t want to back down on fees or water levels.”

The SMP is part of a process the power company must satisfy per its Federal Energy Regulatory Commission (FERC) license, which the federal agency has renewed.

Also joining the fight is Attorney General Richard Blumenthal, who issued a statement against the final SMP draft. Mr Blumenthal’s statement criticizes the SMP saying, “Incredibly, the plan includes no reference — let alone solution — to shoreline erosion at Lake Lillinonah resulting from higher water levels…”

NGS spokesperson Donna Powell said, “We understand the concerns and expectations that certain language would be in the SMP to address water levels, however, the proper place for those issues is the Littoral Zone Plan.”

She said the plan was developed by Northeast Utilities under control of the Department of Environmental Protection.

Mr Piepho noted that nothing is stopping the power company from raising the waterline although they claim they have no intentions to do so.

“There are no safeguards in the current license,” he said. “The licensing reads so they have the ability to flood the lakes whenever they want.” Currently the lake is operating several feet below the maximum allowed by the license.

Power company representatives take a different view.

“We believe we’ve achieved a balanced plan that fairly takes into account lakes and river fronts and current and future needs for environmental and recreational purposes,” Ms Powell said.

Mr Blumenthal’s statement of July 28 accuses NGS of continuing to “bury its head in the mud.”

“This plan is unacceptable, and I will continue to fight it — working with residents, as well as local and state officials,” said the AG. “I am deeply disappointed by the final Shoreline Management Plan … The company ignored residents’ real and relevant concerns — shared by me, the DEP, and local officials.”

Mr Blumenthal’s remarks also attack proposed fees, stating: “The current plan imposes unfair fees on Candlewood Lake residents and endangers the ecology and environmental health of Lake Lillinonah.”

Ms Powell asserts that NGS has adapted to changes in the lakeside communities.

“This is the first time that our company has done an SMP to this extent,” she said. “There were new requirements by FERC in recognition of the fact that there is so much more residential and recreational demands on the lake and we know a lot more about environmental stewardship now than in the previous 40-year license.”

Mr Blumenthal plans to take his complaints to the federal arena.

“I will seek a full hearing before FERC to demand changes that protect the environment and treat lakeside residents fairly,” his statement included.

FERC spokesperson Celeste Miller said that standard procedure would allow the FERC officials to first review the SMP to be certain it is complete. FERC will then issue a notice for public comment.

Before issuing a decision on the SMP, “we will review all comments,” she said. She expects that notice for public comment will occur soon.

A situation such as Mr Blumenthal’s would legally be referred to as an intervention, which would coincide with the public comment period. Paper work and legal steps for an intervention are “cumbersome,” however.

Interveners also have additional time to contest FERC’s decisions.

“A party can appeal — in general — a party can ask for a rehearing within 30 days,” said Ms Miller.

Mr Blumenthal stated his case at a recent meeting he called between the power company, state representatives, Department of Environmental Protections, and others, said Mr Piepho. “He wants to work language into the license to keep the lake at historic levels.”

Mr Piepho continued: “We’re trying to get [the language] fixed before the newcomer comes in.”

The Final SMP Draft

A complete, 57-page SMP can be found at EssexPartnership.com/HRP.asp. Following are several areas pertaining to fee structures.

“Registration Fee for Existing Structures — Residential: When registering existing structures, applicants must pay a one-time registration fee unless the application is: received within six (6) months of SMP approval; for structures located on lands owned entirely by the applicant; for structures covered by a deeded right; or for structures covered by a current license…”

The shoreline plan states, “This Shoreline Management Plan addresses the future management of shoreline lands associated with Housatonic River Project, which includes five separate hydroelectric developments in the state of Connecticut licensed by the Federal Energy Regulatory Commission (FERC Project No. 2576). The SMP provides a comprehensive plan for managing shoreline uses consistent with specific FERC license requirements for protecting and enhancing the environmental values of the project, while operating and maintaining the project for power generation.”

In Newtown, fees apply to Lake Lillinonah residents, but not to property owners along Lake Zoar because of ownership differences. The SMP clarifies, “Most of the lands within the project boundaries at Falls Village, Bulls Bridge, Candlewood Lake, and Lake Lillinonah are owned by the project owner (power company). At Lake Zoar, much of the land within the project boundary are not owned by the project owner, though the project owner has retained flowage easements required for the operation of the Project.”

The proposed SMP states stipulations for structures along the project owner’s (power company’s) lands. The report notes, “Use and occupancy of project lands owned by the project owner, as well as project lands at the water’s edge, must be approved by the project owner through a written license or lease. Preexisting structures will be approved in accordance with this SMP through a formal registration process. New construction shall be evaluated through a formal licensing process and shall be contingent upon the applicant receiving applicable

The SMP specifies, “State and local permits — Unless explicitly allowed by an existing agreement, docks and other facilities constructed on Project Lands shall be for the use of the licensed party and shall not be rented or used for commercial activity per local zoning ordinances that prohibit unlicensed commercial activity in residential areas. No habitable structures shall be allowed on Project Lands…”

In addition, the report later states: “Existing docks and other structures located within the project boundary must be registered with the project owner and receive a license or lease for continued use and occupancy. If an existing structure within the FERC Project Boundary is being replaced or being modified with regard to size, location, or configuration a new license will be required and the structure must conform to the Shoreline Development Guidelines…”

Lakes Lillinonah and Zoar will be affected differently due to ownership. As clarified in the SMP, “Approximately 95 percent of the land within the Project Boundary is owned by the Project Owner.” Lake Zoar’s shoreline bordering residential areas is primarily the property owner’s.

Fees schedules are subject to change.

The final SMP draft notes: “The fee schedule may be modified based upon the final approved SMP, and will be reviewed and adjusted every three  years.

“Registration fees are to cover the costs of processing application forms, including necessary site inspections. The one-time registration fee will cover all existing structures associated with a given parcel.”

 

Annual License Administration Fee

Also according to the Partnership’s website, all entities with structures located on Project Lands shall pay an annual fee unless the shoreline structures are located on lands owned entirely by the applicant/license holder. Annual fees will be used to cover ongoing administrative costs such as monitoring license compliance and responding to license violations.

Annual fees shall be billed on a per-parcel basis to the holder of the license.

Appendix I, also available at EssexPartnership.com, outlines an initial fee schedule as determined by the project owner for the administration of the Housatonic River Project (FERC No. 2675) SMP Licensing Program as submitted to the FERC in July 2006. This initial fee schedule is subject to change based on final FERC approval of the SMP.

As outlined in the SMP, costs and revenues associated with the licensing program will be reviewed annually, shared with the Lake Advisory Committee, and revised as needed every three years based on actual costs and revenues.

Details regarding the overall licensing program fee structure are contained in Section 8.6 of the SMP.

 

Initial Fee Schedule

Existing Structure Registration Fee is $500.

One-time Licensing Fees are as follows (new construction): Dock, $500; Shed, $500; Deck, $1,000; Patio, $750; Gazebo, $1,000; Beach,  $1,000; Retaining wall, $500; Swim platform, $300; Storm drain, $300; Buffer, $0 (no charge).

Annual Administrative Fee: Residential License, $200; Community Facilities, $100 per slip.