Business group and elected officials have lined up to oppose the planned sale and eventual removal of four hydropower dams on the Kennebec River.
Sappi North America, which owns a paper mill in Skowhegan, has said it relies on a river impoundment created by the nearby Shawmut Dam to operate and it would have to shut down if the facility is removed. More than 700 people work at the Skowhegan mill and it is a major economic driver in the region.
The Nature Conservancy last year unveiled a historic plan to purchase the four dams between Waterville and Skowhegan, with a goal of returning the river to its free-flowing state. The deal was championed as a historic development by environmental groups that have worked for decades to restore native sea-run fish to the river.
But Sappi, along with business groups, oppose dam owner Brookfield's application to the Federal Energy Regulatory Commission to transfer dam licenses to subsidies it set up to facilitate the possible sale.
"Our engineering analysis shows that dam removal would render our intake system inoperable, and no proven technical solution exists to address this," said Sappi spokesperson April Jones. The company raised its concerns with The Nature Conservancy but it moved ahead without a viable plan to protect Sappi operations, Jones added.
"We believe FERC should not approve the transfer of the license for the Shawmut Dam until a workable solution exists for the mill’s water supply," Jones said.
Opponents argued that there was no evidence the new company set up to hold the licenses had the financial resources or technical know-how to operate the dams.
Critics urged regulators to refuse the transfer until there is a viable engineering solution to assure Sappi's mill could keep operating.
U.S. Rep. Jared Golden, a 2nd District Democrat, and Republican U.S. Sen. Susan Collins both filed letters urging FERC to reject the transfer application.
"Granting a license transfer to operate and maintain a dam to a holding company that does not even exist yet — and that expressly intends to decommission the dam rather than operate it — is reckless," Golden said a letter to the commission.
In a statement, Brookfield said the hydro dams were currently part of the company's larger hydroelectric portfolios. The transfers are an "administrative step" to move the dams to new subsidies and simplify a future transaction, said spokesperson Steven Zuretti.
"Once that transaction has been completed, fulsome development of future plans for the projects will take place," Zurretti said.
"Those future plans will be considered by FERC in a separate proceeding after a decommissioning plan— that accounts for the interests of all stakeholders— is developed and filed by TNC and its partners," Zurretti added.
