The Federal Energy Regulatory Commission (FERC) has revoked the Village of Highland Falls High-Point Utility, LDC’s operating license for the 75 kW Buttermilk Falls Hydroelectric Project (P-7656) in Orange County, New York.
FERC cited the licensee’s “longstanding failure” to: obtain necessary property rights pursuant to Standard Article 5 of its license; comply with Commission staff’s Sept. 21, 2017, Order Approving Transfer of License and Terminating Implied Surrender Proceeding; and comply with staff’s June 30, 2023, Compliance Order.
On June 24, 1986, the Commission issued an original 40-year license for the Buttermilk Falls Project. The project includes an 18-inch-high, 15-foot-long dam; an 18-inch-diameter, 400 foot-long PVC penstock; a powerhouse containing one 55 kW and one 20 kW generating unit; 480-volt generator leads; a 300-foot-long, 480-volt transmission line; and a 0.48/13.6kv cable connecting the transformer to the area distribution system.
In the falls of 2011 and 2012, the project powerhouse sustained damage from Hurricanes Irene and Sandy, making the project inoperable. The powerhouse has not operated since 2012, per FERC.
In 2017, FERC approved transfer of the license from the original licensee, who was facing a termination of license by implied surrender, to High-Point Utility. The transfer order directed High-Point Utility to comply with all terms and conditions of the license and to restore project operations. And in January 2018, High-Point Utility filed plans for acquiring the property rights for the penstock and restoring project operations.
However, a pre-existing property dispute was yet to be settled. In June 2009, owners of the neighboring property alleged that an about 200-foot portion of the project’s penstock encroaches on their property. In January 2022, those owners filed a complaint with the Commission alleging that High-Point Utility had failed to satisfy the requirements of Standard Article 5 and ordering paragraph (C) of the Transfer Order. As relief, they requested that the Commission revoke the project license and direct High-Point Utility to remove the penstock and restore their property to its natural condition.
High-Point Utility confirmed in August 2022 that its investigations determined it did not possess the property rights for the lands occupied by the penstock. Despite subsequent negotiations, restoration work did not progress, and in the end FERC issued an order revoking license and dismissing rehearing request on Sept. 19, 2024.
