The application is the result of four years’ collaboration between PSE, government bodies, tribal groups and environmental organisations, which encompassed a range of studies including the analysis of fish habitat conditions in the Skagit river basin, the area’s recreational needs and a cost-benefit analysis of the Baker river hydro scheme.

PSE and its partners in the relicensing process plan to submit a binding license agreement to FERC this summer for incorporation into the project license, while FERC is not expected to come to a final decision until 2006, when Baker river’s existing license comes to an end.

Proposals made in PSE’s application include:

• Investment of over US$131M for the improvement of upstream and downstream fish passage around two dams, the construction of a hatchery and additional spawning beach for sockeye salmon, and the installation of a new generator at Lower Baker dam,

• Provision of more habitat space for elk, grizzly bears, mountain goats, bald eagles, osprey and other wildlife,

• New recreational facilities, including hiking trails on US Forest Service land and new access for boats on Lake Shannon,

• Continuation of the vacant storage space behind the Upper Baker dam, amounting to over 91Mm3, provided during the winter for flood control.

If PSE is granted a new license, it will be able to continue operating the power plant for another 30 to 50 years.