Power, paper firms challenge DNR fee

Madison Six hydroelectric power and paper companies with Wisconsin operations are challenging the constitutionality of a state fee to review their applications to a federal agency for relicensing hydro dams.

The six companies allege that federal law pre-empts states from charging them to review their applications to the Federal Energy Regulatory Commission. They have asked U.S. District Judge Barbara B. Crabb to prohibit the State Department of Natural Resources from continuing the practice.

The companies who brought the suit all of whom have license applications pending before the FERC are: Wisconsin Valley Improvement Co., Northern States Power Co., Nekoosa Papers Inc., Weyerhauser Paper Co., Tomahawk Power and Pulp Co. and N.E.W. Hydro Inc.

In 1989, the Legislature authorized the DNR to charge applicants fees, proportionate to the size of their projects, to recover costs the DNR incurs.

In 1994, the DNR had about seven employees reviewing and evaluating 34 hydro projects from about 17 applicants, said DuWayne Gepkin, DNR chief of environmental analysis.

The DNR billed the 17 applicants about $250,000 in 1994, which covered about one-half of the DNR's costs, Gepkin said. The six companies in the lawsuit still owed the DNR $91,200, Gepkin said.

The companies state that, since 1992, the Federal Power Act has provided reimbursement to the states for their application review costs. But Gepkins said FERC has no money to reimburse the states and the DNR has not received any money from FERC for that purpose.

Gepkin said that, to his knowledge, Wisconsin is the only state that charges companies such a fee.

FERC is not required to consult the DNR about the impact of hydro dams on state natural resources, but must consider state agency recommendations in making relicensing decisions, the suit stated.

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