20070812 Ver 1_Application_20070510

LEBOEUF, LAMB, GREENE & MAC RAE LLP
NEW YORK
WASHINGTON, D. C.
ALBANY
BOSTON
CHICAGO
HARTFORD
HOUSTON
JACKSONVILLE
LOS ANGELES
SAN FRANCISCO
1875 CONNECTICUT AVE., N.W.
SUITE 1200
~IVASHINGTON, ~.C. 20009-5728
[phone]
FACSIMILE: [phone]
E-MAIL ADDRESS: [e-mail]
WRITER'S DIRECT DIAL: [phone]
WRITER'S DIRECT FAX: [phone]
May 10, 2007
By Hand Delivery
North Carolina Division of Water Quality
Attn: John Dorney
Wetlands Program Development Unit
Parkview Building
2321 Crabtree Blvd.
Raleigh, NC 27604
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LONDON
A MULTINATIONAL
PARTNERSHIP
PARIS
BRUSSELS
JOHANNESBURG
fPTY) LTD.
MOSCOW
RIYADH
AFFILIATED OFFICE
ALMATY
BEIJING
Re: Water Quality Certification Application for the Yadkin Hydroelectric
Project FERC No. 2197
Dear Mr. Dorney:
Enclosed for filing please find a completed application (together with supporting
documents) for water quality certification of the Yadkin Hydroelectric Project, FERC No. 2197,
owned and operated by Alcoa Power Generating Inc. ("APGI"). Specifically, enclosed are one
(1) original and six (6) copies of an application package containing each of the following:
(1) Completed and signed "FERC 401 Water Quality Certification
Application";
(2) "Application for License for Major Project -Existing Dam" (Apri12006)
for the Yadkin Project (which includes maps of the Project) filed with the
Federal Energy Regulatory Commission (FERC);
(3) Yadkin Project "Relicensing Settlement Agreement" (February 2007) filed
with FERC on May 7, 2007;
(4) Yadkin Project "Dissolved Oxygen Monitoring Plan" (May 2007);

. ~„

North Carolina Division of Water Quality
May 10, 2007
Page 2
(5) Yadkin Project "Tailwater Dissolved Oxygen Monitoring Quality
Assurance Project Plan" (May 2007);
(6) Draft Yadkin Project "Flow and Reservoir Elevation Monitoring Plan"
(April 2007); and
(7) A check in the amount of $475.00 payable to the North Carolina Division
of Water Quality.
APGI will provide afile-stamped copy of this letter to FERC as proof of its
application for water quality certification from the State of North Carolina.
Please contact either of the undersigned at the number listed above with any
questions concerning this application.
Very truly yours,
~~,a<cr~...
D. Randall Benn
David R. Poe
Counsel for APGI
cc: Gene Ellis
Coralyn Benhart

0 7 0 8 1 2
DWQ ID: --------
FERC 401 WATER QUALITY CERTIFIC
APPLICATION
FOR EXISTING FERC PERMITS
~ SEND SEVEN (7) COPIES AND THE
APPROPRIATE FEE ~sEE iTEnn # ~s)* oFTHis
THE NC DIVISION OF WATER QUALITY
ATTN: TODD ST. JOHN
4401 REEDY CREEK ROAD
RALEIGH, NC 27607.
(PLEASE PRINT OR TYPE.)
~~,~,~~
1. OWNER'S NAME: Al rna pnC7aY (`cnora~y~~~,jyg~------
2. MAILING ADDRESS: 300 North Mall Bd~ (MS-m1 S2L1_ A~ G~3, TN 37701 -251 6
PROJECT NAME:.Yadkin Hvdroel c ri c Prn~~~,_f~FF.RC' Nn• 21 g7 )
CITY: Badi n STATE: NC _ ZIP CODE: ~ R ~ ~ 9 _
PROJECT LOCATION ADDRESS (IF DIFFERENT FROM MAILING ADDRESS
ABOVE):
3. TELEPHONE NUMBER: (WORK) (;$_6.5_) _2Z.Z3334--_------
4. IF APPLICABLE: AGENT'S NAME OR RESPONSIBLE CORPORATE OFFICIAL,
ADDRESS. PHONE NUMBER:
William Bunker, V P APGI Hydro Operations (address as above)
5. LOCATION PROJECT (PROVIDE A MAP, INCLUDING A COPY OF US~5
TOPOGRAPHIC MAP OR AERIAL PHOTOGRAPHY WITH SCALE):
Davie .Davidson, Rowan Montgpmery and
COUNT' S,±-,~y~,~~_ NEA~2EST TOWN: Ra c~ i n
SPECIFIC LOCATION (INCLUDE ROAD NUMBERS, LANDMARKS, ECT.) See attached
T i rPn~P And 1 i rat; nrL ~~.) ~~. 6 ~^"' _pr~~~-t-~= r see
D.O. Plan Fici 1 IVER BASIN.
6. IMPACTED STREAM/RIVER: Yadkin Ri vPrR Yadkin Pee-Dee River Basin
CURRENT DIVISION OF WATER QUALITY (DWQ) CLASSIFICATION Varla e (Class C or WS)
See LA Ex. E App. E.1. Section 2.5
7. (a) IS THE PROJECT LOCATED WITHIN A NORTH CAROLINA DIVISION OF
COASTAL MANAGEMENT AREA OF ENVIRONMENTAL CONCERN (AEC)? YES ^
NO
LbST OF COASOTAL COUNOTICES)EWHAITHS HEOLAND USEOPLAN (LUP) PAGE 7 FOR
DESIGNATION?
~~ f~ r~,Q~y ~I^~ ~
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&. (a) ARE ADDITIONAL PERMIT REQUESTS EXPECTED FOR THIS PROPERTY IN
THE FUTURE? YES ^ NO ~ IF YES, DESCRIBE ANTICIPATED WORK:
9. (a) ESTIMATED TOTAL NUMBERS OF ACRES IN PROJECT: ~..~~ n n n
10. PROVIDE AN APPROPRIATE ENVIRONMENTAL DOCUMENT. THE DOCUMENT
SHOULD ADDRESS:
(a) DATA SHOWING THAT A 7Q10 MINIMUM FLOW WILL BE PROVIDED
(b) A COST BENEFIT ANALYSIS OF THE PROJECT SHOWING WHY THE PROJECT
IS STILL NECESSARY
(c) PROV DIETF OW TO THE REOACH IN LOW FLOW COND TIOND MEASURES TO
(d) MEASURES PLANNED OR TAKEN TO MAINTAIN DOWNSTREAM WATER
QUALITY SUCH AS ADEQUATE DISSOLVED OXYGEN.
See attached LA & Relicensing Settlement Agreement
11. WHATfS THE SIZE OF THE WATERSHED 44(1 (1 ~T ~HQT IS THE FULL-POND
SURFACE AREA? ~~ nnn a~rcc (approx. )
12. YOU ARE REQUIRED TO CONTACT THE US FISH AND WILDLIFE SERVICE AND/OR
NATIONAL MARINE FISHERIES SERVICE REGARDING THE PRESENCE OF ANY
FEDERALLY LISTED OR PROPOSED FOR LISTING ENDANGERED OR
THREATENED SPECIES OR CRITICAL HABITAT IN THE PERMIT AREA THAT MAY
BE AFFECTED BY THE PROPOSED PROJECT. DATE CONTACTED:
Periodic consultation 2002-2007
13. YOU ARE REQUIRED TO CONTApPY H~~icT ConsOultatioEn v20102-2007
OFFICER. DATE CONTACTED:
(SHPO) REGARDING THE PRESENCE OF HISTORIC PROPERTIES IN THE PERMIT
AREA WHICH MAY BE AFFECTED BY THE PROPOSED PROJECT. DATE
CONTACTED:Same as above, and see LA Ex. E Apps E-16, 17 & 25.
14. DOES THE PROJECT INVOLVE AN EXPENDITURE OF PUBLIC FUNDS OR THE USE
OF PUBLIC (STATE) LAND? YES ^ NO ~ (IF NO, GO TO 15)
(a) IF YES, DOES THE PROJECT REQUIRE PREPARATION OF AN
ENVIRONMENTAL DOCUMENT PURSUANT TO THE REQUIREMENTS OF THE.
NORTH CAROLINA ENVIRONMENTAL POLICY ACT? YES ^ NO ^
(b) IF YES, HAS THE DOCUMENT BEEN REVIEWED THROUGH THE NORTH
CAROLINA DEPARTMENT OF ADMINISTRATION STATE CLEARINGHOUSE YES ^
NO ^
IF ANSWER 17b IS YES, THEN SUBMIT APPROPRIATE DOCUMENTATION FROM
THE STATE CLEARINGHOUSE WITH THE NORTH CAROLINA ENVIRONMENTAL
POLICY ACT.
QUESTIONS REGARDING THE STATE CLEARINGHOUSE REVIEW PROCESS
SHOULD BE DIRECTED TO MS. CHRYS BAGGETT, DIRECTOR STATE
CLEARINGHOUSE, NORTH CAROLINA DEPARTMENT OF ADMINISTRATION, 116
WEST JONES STREET, RALEIGH, NORTH CAROLINA 27603-8003, TELEPHONE
[phone].
Version 1.0
January, 1999

15. THE FOLLOWING ITEMS SHOULD BE INCLUDED WITH THIS APPLICATION IF
PROPOSED ACTIVITY INVOLVES THE DISCHARGE OF EXCAVATED OF FILL
MATERIAL INTO WETLANDS: N ~ A
(a) WETLAND DELINEATION MAP SHOWING ALL WETLANDS, STREAMS, LAKES,
AND PONDS ON THE PROPERTY (FOR NATIONWIDE PERMIT NUMBERS 14, 18, 21,
26, 29, AND 38). ALL STREAM (INTERMITTENT AND PERMANENT) ON THE
PROPERTY MUST BE SHOWN ON THE MAP. MAP SCALES SHOULD BE 1 INCH
EQUALS 50 FEET QF 1 INCH EQUALS 100 FEET OF THEIR EQUIVALENT.
(b) IF AVAILABLE, REPRESENTATIVE PHOTOGRAPH OF WETLANDS TO BE
IMPACTED BY PROJECT.
(c) IF DELINEATION WAS PERFORMED BY A CONSULTANT, INCLUDE ALL DATA
SHEETS RELEVANT TO THE PLACEMENT OF THE DELINEATION LINE.
(d) ATTACH A COPY OF THE STORMWATER MANAGEMENT PLAN IF REQUIRED.
(e) WHAT IS LAND USE OF SURROUNDING PROPERTY?
----------------------------------------------------------- -
(1] IF APPLICABLE, WHAT IS PROPOSED METHOD OF SEWAGE DISPOSAL?
16. CERTIFICATION FEE
(a) OF STREAMCPLIEASE ENC OSE A CHEOCK FOR $200. 0 MADE OUT TO THE NORTH50 FEET
CAROLINA DIVISION OF WATER QUALITY.
(b) CHECK FIOR $475X OEMAD-DE OUT TO THEONORTH CAROLINA DIVISION OF WATER QUALITY.
~~. pU~Cfc~70T1G~`f5R1='C7C17RE~ FOR ALL FERC PROJECTS. PLEASE NOTE THAT THE
APPLICANT IS REQUIRED TO REIMBURSE THE DIVISION OF WATER QUALITY FOR THE
COSTS ASSOCIATED WITH THE PLACEMENT OF THE PUBLIC NOTICE. REFERENCE 15A
NCAC 2H .0503 (1].
SIGNED AND DATED AGENT AUTHORIZATION LETTER, IF APPLICABLE.
NOTE: WETLANDS OR WATERS OF THE US MAY NOT BE IMPACTED PRIOR TO:
1. ISSUANCE OF A SECTION 404 CORPS OF ENGINEERS PERMIT,
2. EITHER THE ISSUANCE OR WAIVER OF A 401 DIVISION OF WATER
QUALITY CERTIFICATION, AND
3. (IN THE TWENTY COASTAL COUNTIES ONLY), A LETTER FROM THE
NORTH CAROLINA DIVISION OF COASTAL MANAGEMENT STATING THE
PROPOSED A VITY IS CONSISTENT WITH THE NORTH CAROLINA
COASTAL, M„ A EMENT PROGRAM,
OWNER'SIAGENT%S SIGNATURE D
(AGENT'S SIGNATURE VALID ONLY
IF AUTHORIZATION LETTER FROM
THE OWNER IS PROVIDED).
Version 1.0
January, 1999

~ 7' ~ 8 1 2
YADKIN PROJECT
FERC No. 2197
JOINT EXPLANATORY STATEMENT
FOR THE RELICENSING SETTLEMENT AGREEMENT
(April 2007)
This Joint Explanatory Statement (JES) presents an overview and explanation of a
comprehensive Relicensing Settlement Agreement (RSA) reached between the License
Applicant, Alcoa Power Generating Inc. (APGI), and most of the participants in the Yadkin
Project (FERC No. 2197) licensing proceeding. This RSA is intended to replace an Agreement
in Principle (AIP) that was executed in June 2006 and filed with the Commission. The Parties123
respectfully request that the Commission (i) adopt the RSA as its preferred alternative for the
purposes of the National Environmental Policy Act, (ii) incorporate without modification the
Prpposed License Articles included in the RSA into a New License for the Yadkin Project, and
(iii) issue a New License for the Yadkin Project with a term of 50 years.
1. Background
On April 25, 2006, APGI filed an Application for a New License with the Federal Energy
Regulatory Commission (FERC or Commission) for its Yadkin Project (Yadkin Project or
Project). In June 2006 APGI and most of the participants in the relicensing process reached an
AIP regarding issues pending in the relicensing. Subsequently, the signatories to the AIP
engaged in a negotiation process to finalize a Relicensing Settlement Agreement, using the AIP
as a basis for further discussion. The group's goal was to develop an agreement which
achieved an appropriate balance of competing resource interests in the Yadkin Project. This
effort produced a consensus among the AIP signatories representing a broad range of interests
on protection, mitigation, and enhancement measures (PMEs) for the Yadkin Project that
address environmental, recreational, and cultural issues, as well as other beneficial uses of the
Project waters and the Yadkin-Pee Dee River, including hydropower generation, drought
management, and endangered species protection, as required by Sections 4(e), 10(a), 10Q) and
18 of the Federal Power Act (FPA). The participants in this process included APGI, state and
federal resource agencies, the Catawba Indian Nation, local governments, homeowner
associations, and national and local non-governmental organizations (NGOs).
' Alcoa Power Generating Inc., American Rivers, Badin Historic Museum, Inc., Badin Lake Association,
Catawba Indian Nation, City of Albemarle, High Rock Business Owners Group, High Rock Lake
Association, Montgomery County, North Carolina Department of Environment and Natural Resources,
North Carolina Wildlife Resources Commission, Pee Dee River Coalition, Piedmont Boat Club, Rowan
County, Salisbury/Rowan Association of Realtors, South Carolina Coastal Conservation League, South
Carolina Department of Health and Environmental Control, South Carolina Department of Natural
Resources, The Land Trust for Central North Carolina, The Nature Conservancy, Town of Badin, United
States Forest Service, Uwharrie Point Community Association.
2 Although they are not a signatory to the Yadkin RSA, the U.S. Fish and Wildlife Service and U.S.
Environmental Protection Agency have indicated their support for the operating proposals and resource
protection measures included in the RSA.
3 APGI and PE have agreed that, for corporate and operational reasons the licensees will not sign each
others comprehensive agreement. Instead, there will be a separate agreement between the companies
that addresses issues specific to the licensees.
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This JES provides a framework for understanding the outcome of the Yadkin Project relicensing
negotiations process, which is detailed in the RSA being filed with the Commission. Importantly,
the RSA should be read and evaluated by FERC as a stand-alone proposal of PMEs that
supersedes both the proposals put forth in APGI's Application for New License and those
outlined in the AIP previously filed with the Commission.
2. The Settlement Agreement Process
This RSA is the result of an intensive effort, by many dedicated organizations and their
representatives, to relicense the Yadkin Project that began over four years ago. At that time,
APGI elected to utilize acommunications-enhanced version of the traditional three-stage
consultation process to relicense the Project. This process was initiated in 2002, with the
preparation and issuance of an Initial Consultation Document (ICD). In conjunction with the
ICD, Yadkin held a series of public meetings to introduce the public to the relicensing process,
to review the ICD, and to gain additional input on relevant resource issues to be addressed
during the relicensing. APGI engaged in consultation with resource agencies, tribes and other
interested stakeholders through the formation of Issue Advisory Groups (IAGs) to define
information needs and identify needed scientific and technical studies. As the studies were
completed, APGI continued to engage the participants in the review of study results and the
evaluation of potential PMEs for inclusion in the New License. Most recently, APGI has
continued to work with interested participants in settlement negotiations. The initial focus was
on the development of a Meetings and Negotiations Protocol in late 2004, providing the
framework and ground rules for these negotiations, and culminated in June 2006 with the
signing of the AIP. At that point, several different Workgroups comprised of AIP signatories that
had been actively involved in the early IAGs were formed to resolve any remaining issues and
draft the detailed settlement language and license articles intended to reflect the AIP
commitments. The Workgroups included a Project Operations Workgroup (including the Low
Inflow Protocol) a Water Quality Workgroup, a Fish Passage Workgroup, an Environmental
Management Workgroup, a Recreation and Shoreline Management Plan Workgroup, a Lands
Workgroup, and a Historic Properties Management Plan (HPMP) Workgroup, along with a Legal
Workgroup. Together, these Workgroups created the legally binding RSAto implement the
agreed-upon PMEs and to govern the relationship among the Parties over the life of the New
License.
3. Relicensing Settlement Agreement
The RSA is comprised of three parts:
1. General Provisions that include the legal definitions and standards of the RSA;
2. Settlement Provisions Not Covered by the Proposed License Articles, including various
funding commitments by APGI, cooperative agreements between APGI and various state and
federal agencies, and commitments regarding non-Project land grants and conveyances; and
3. Proposed License Articles that establish the Licensee's obligations that will be enforceable
by the Commission. These Proposed License Articles have been drafted to conform to the
Commission's need to assure enforcement of the entirety of the New License. The articles
specify operational requirements including flow schedules and values, reservoir operating
curves, water quality enhancements, recreational enhancements, shoreline management
provisions, cultural resource management provisions, rare, threatened, and endangered (RTE)
species management provisions, and other PME enhancement measures and funding support.
2

The proposed articles, taken together with other commitments made in the RSA and with the
conditions within the State of North Carolina's certification pursuant to Section 401 of the Clean
Water Act (CWA), will ensure that the Project is and will be best adapted to a comprehensive
plan of development for the Yadkin-Pee Dee River, and that it will continue to comply with all
applicable laws.
The RSA also contains a series of Appendices including a Low Inflow Protocol (LIP), a Hydro
Project Maintenance and Emergency Protocol (HPMEP), Recreational Facility Enhancements,
modifications to various specifications and procedures in the Yadkin Project Shoreline
Management Plan (SMP), and descriptions of land conveyances and land grants.
The three main parts of the RSA along with the Appendices comprise the entire RSA. In its
issuance of a New License for the Yadkin Project, the Parties to the RSA respectfully request
that the Commission incorporate into the New License the Proposed License Articles and the
HPMEP without modification and also approve the proposed modifications to the SMP. The
remaining elements of the RSA, including the "Settlement Provisions Not Covered by Proposed
License Articles" in Section 2 of the RSA, the LIP (Appendix A), and the land grants and
conveyances depicted on maps in Appendix E are for FERC's information only and will be
implemented and enforced as provided for in the RSA.
4. FERC Adoption Without Modification
The Parties to the RSA respectfully urge the Commission to incorporate the Proposed License
Articles into the New License as drafted. The detailed provisions of the Proposed License
Articles reflect the intent of the Parties to ensure the Commission's ability to enforce the License
while fully effectuating the delicate balance of the RSA. Material changes to the Proposed
License Articles could lead to adverse consequences, including the potential for Parties to
withdraw from the RSA or for the entire RSA to be terminated. Therefore, the Parties to the
RSA request that the Commission honor the Parties' intentions by issuing a New License to
APGI for the Yadkin Project incorporating the Proposed License Articles without modification.
5. Consistency with FERC's Settlement Policy
In developing the RSA, the Parties sought to reflect their agreements in a fashion that, with one
exception, is consistent with the guidance provided in the Commission's Policy Statement on
Hydropower Licensing Settlements (Docket No. PL06-5-000, September 21, 2006) and believe
that the Commission can fully discharge its legal responsibilities through adoption of the
Proposed License Articles into the New License for the Project.
Given the relicensing record, the Parties believe that the settlement proposal contained in the
RSA fully meets the comprehensive development/equal consideration standards embodied in
Sections 10(a)(1) and 4(e) of the Federal Power Act. The Parties also believe that the Proposed
License Article language provides the Commission with clear and enforceable language with
which to oversee license compliance. With this in mind, the Parties developed the Proposed
License Article language with specific measures to reflect license obligations.
At the same time the Parties fully acknowledge that there are provisions of the RSA that are not
within the scope of the Commission's jurisdiction and thus not appropriate for inclusion in the
New License. It is the intent of the Parties that these provisions will be enforced among the
Parties pursuant to applicable provisions of the RSA itself. We have attempted to clearly identify

which portions of the RSA are within the Commission's jurisdiction and which are not, both
through the organization of the RSA itself as well as through the rationale provided in this JES.
There is no intent on the part of the Parties to extend the Commission's jurisdiction. With this in
mind, the Parties, for example, are proposing a License Article articulating the Licensee's
responsibilities under a proposed Low Inflow Protocol (LIP), while not proposing that the
Commission include the entire LIP in the license as that document includes provisions and
responsibilities that extend to entities other than the Licensee.
The exception to the Commission's Policy Statement on Hydropower Licensing Settlements that
we bring to the Commission's attention relates to the operation and maintenance (O&M) of
public recreation sites that provide access to Project lands and waters. There are 40 public
recreation sites in the immediate proximity of the Project and there is no disagreement among
the Parties that these facilities provide access to the Project. However, these sites are owned
and managed by a variety of entities, including the Licensee, the North Carolina Wildlife
Resources Commission (NCWRC) and the U.S. Forest Service (USES). During settlement
negotiations it was made clear by NCWRC and USES that they preferred to have APGI provide
a defined level of funding support to their organizations so that they could undertake the
necessary O&M activities at their facilities as part of their larger organizational O&M efforts.
Thus, the language in the RSA is crafted to require APGI to provide specified financial support
to these organizations to conduct the necessary O&M, with the identified amount of funding
being based on long-term experience with the types of O&M activities that can be anticipated in
the future. We believe that cooperation with these state and federal agencies in providing
recreational access to the project provides sufficient justification for distinguishing these
provisions of the RSA from the Commission's preference for avoiding specified funding
obligations in a license.
In addition, the Parties understand that the Commission's decision with regard to the RSA must
be supported by substantial evidence. During the development of the RSA close attention was
paid to the scientific and technical information generated during the course of the relicensing
consultation and filed in the Commission's relicensing docket for this Project In the instance of
each of the Proposed License Articles, the Parties believe that the compiled record supports the
proposed provisions and that need for the article is based on an established nexus to Project
purposes and identified impacts of the Project. Information in Section 7 of this JES provides
supporting rationale for how each license article will accomplish its stated purpose.
6. Long-Term Protection of Lands
The Parties to the RSA consider the land grants and conveyances involving non-Project lands
between APGI and specified Parties to be essential elements of the RSA, although outside of
the Commission's jurisdiction. These agreements provide long-term or permanent protection for
thousands of acres owned by APGI in the vicinity of the Project reservoirs, thereby preserving
and protecting ecologically and culturally significant lands as open-space in the rapidly
developing central North Carolina region. The ultimate consummation of these land agreements
is contingent upon APGI accepting the New License for the Yadkin Project.
7. Record Support
The Parties to the RSA concur that the record developed to date in this proceeding supports the
PMEs contained in the RSA, including APGI's obligations set forth in the Proposed License
Articles. Each of the proposals set forth in the Proposed License Articles and other provisions
4

of the RSA, rests on a thorough review of the scientific and technical information available or
produced as part of this relicensing process. In some cases RSA provisions reflect information
and analyses that were not complete or available during the preparation of the Application for
New License. APGI and the other Parties to the RSA believe that these proposals represent an
improvement over proposals in the Application for New License and have developed the
following summary of the changes to Project resources that are expected to occur as a result of
implementing each of the Proposed License Articles contained in the RSA.
7.1 Reservoir Operations -Article PO-1
7.1.1 High Rock
Under the provisions of the RSA, APGI proposes to operate High Rock Reservoir in accordance
with an operating curve such that the reservoir water level will be maintained within 4 ft of full
between April 1 and October 31 of each year, and within 10 ft of full between November 1 and
March 31 of each year, except as needed in order to maintain minimum flows, or as provided
under the LIP or HPMEP. If water levels in High Rock Reservoir fall below these normal
minimum elevations, then APGI will reduce releases to no more than the daily average
equivalent of the minimum flow requirement at Falls Dam described in proposed License Article
PO-2.
This proposal will provide significant environmental, recreational and aesthetic resource
enhancement. Maintaining reservoir water levels within 4 ft of full April 1 -October 31 will
maintain and enhance the quality fisheries in the reservoir and fish and wildlife access to a
portion of the high quality habitat located within the upper 6 ft of the reservoir for three more
months per year than under the existing license. The operating curve calls for raising the water
levels in High Rock six weeks earlier in the spring than under the existing license to provide
spawning fish with earlier and better access to high quality spawning habitats. Maintaining the
reservoir within 4 ft of full for six weeks longer than under the existing license in the late summer
and fall will enable juvenile fish to remain in the high quality habitats for much longer, allowing
them to grow larger and making them less vulnerable to predation. Maintaining the reservoir
within 4 ft of full between April 1 and October 31 also extends the potential growing season for
submerged and emergent wetland vegetation, allowing more vegetation to become established
and to be maintained in the reservoir, and enhancing aquatic habitat availability.
Maintaining the reservoir within 4 ft of full also enhances conditions for recreational boating
during the peak of the recreation season and significantly improves the opportunity for
recreation on the reservoir by three (3) additional months each year. It also improves reservoir
area availability for use by fishermen and boaters in the early spring and fall, along with
opportunities for recreation on the reservoir during the fall foliage season.
Limiting the winter drawdown to a maximum of 10 ft below full will also provide significant
enhancements. Limiting the drawdown to 10 ft will protect a greater portion of the reservoir
littoral zone from the effects of desiccation and freezing and will enable more organisms and
plants to establish themselves in the reservoir. Limiting the winter drawdown will enhance the
ability for reservoir refill each spring in time for fish spawning season and the prime spring
fishing season. Limiting the winter drawdown to 10 ft will also prevent dewatering of significant
areas of the reservoir bottom and so should help to reduce related problems such as sediment
re-suspension. The limited winter drawdown will also help to improve the scenic quality of the
reservoir during the late fall and winter.

7.1.2 Tuckertown
APGI proposes to continue to operate Tuckertown Reservoir as it has in the past, with typical
reservoir fluctuations of 3 ft or less. The reservoir will be operated in accordance with an
operating curve such that the reservoir will be maintained within 3 ft of full, except as provided
under the HPMEP.
This proposal will maintain the very high quality wetland and fish habitats that currently exist in
Tuckertown Reservoir. This proposal will also maintain the existing high quality recreation
opportunities available at the reservoir and the current scenic quality of the reservoir. Continued
operation of Tuckertown Reservoir as in the past will also allow the City of Albemarle and Town
of Denton to operate their municipal water withdrawals on the reservoir as they have historically.
7.1.3 Narrows
APGI proposes to operate Narrows Reservoir in accordance with an operating curve such that
the reservoir will be maintained within 5 ft of full, except as needed in order to maintain
minimum flows, or as provided under the LIP or HPMEP.
This proposal will maintain the extensive water willow beds and high quality fish habitat that
currently exist in Narrows Reservoir. This proposal will also maintain the existing high quality
recreation opportunities available at the reservoir and the current scenic quality of the reservoir.
Operation of Narrows Reservoir in this manner will also allow the City of Albemarle to operate
its municipal water withdrawal on the reservoir as it has historically.
7.1.4 Falls
APGI proposes to continue to operate Falls Reservoir as it has in the past with typical reservoir
fluctuations of 4 ft or less. The reservoir will be operated in accordance with an operating curve
such that the reservoir will be maintained within 4 ft of full, except as provided under the
HPMEP.
This proposal will maintain the limited, but important, wetland and fish habitat on Falls
Reservoir. The above proposal will also help to preserve the "natural" recreation experience
provided by Falls Reservoir. This proposal will also maintain existing recreation opportunities
and the current scenic quality of the reservoir.
7.1.5 Reservoir Stabilization to Enhance Fish Spawning
APGI proposes, from April 15 through May 15 of each year, to endeavor to maintain reservoir
water elevations at the four Project reservoirs no lower than -1.0 feet below the elevation of
each reservoir on April 15. Stabilizing the reservoirs during this critical spring period is expected
to enhance conditions for spawning fish.

7.2 Project Instream Flows -Article PO-2
Except when operating under the LIP or HPMEP, APGI proposes to operate the Yadkin Project
so as to provide a daily average minimum flow from Falls Development according to the
following schedule:
June 1 -January 31 1,000 cfs
February 1 -May 15 2,000 cfs
May 16 -May 31 1,500 cfs
This proposal will support flow conditions in the lower river (below Blewett Falls Dam, which is
part of the downstream Yadkin-Pee Dee River Project (FERC No. 2206)), that allow state and
federal management goals for fish, water quality and recreational resources to be met. The
minimum flows proposed by APGI for the summer, winter and spring periods are sufficient to
allow the downstream licensee to provide continuous minimum flows of 1,200 cfs, 2,400 cfs and
1,800 cfs at the U.S. Geological Survey (USGS) gage at Rockingham, during each of these
seasons, respectively. These flows in the lower river are expected to significantly enhance
aquatic habitat conditions in the lower river for a wide array of fish species, as well as for
mussels and macroinvertebrates. The details of the habitat enhancements expected to accrue
in the lower river as a result of these minimum flows at Rockingham are available through study
reports and other documents filed as part of the Yadkin-Pee Dee River Project relicensing
proceeding.
7.3 Flow Monitoring -Article PO-3
APGI will prepare a Flow and Reservoir Elevation Monitoring and Compliance Plan for the
Project. The plan will include provisions for monitoring reservoir water elevations in all four
reservoirs, and flows from both the Narrows and High Rock developments. Once implemented,
the monitoring plan will call for APGI to conduct monitoring sufficient to demonstrate that it is
meeting the operational requirements of its New License.
7.4 Low Inflow Protocol -Article PO-4
APGI proposes to operate the Yadkin Project in accordance with a LIP which is attached to the
RSA as Appendix A. Key elements of the LIP include a definition of "stages" and Project
operational measures to be undertaken by APGI during each of the respective stages.
The drought of 2001-2002 in the Yadkin-Pee Dee River basin demonstrated clearly the
importance of water availability and use to both upstream (reservoir) and downstream users.
During periods of drought, or extreme low inflow, there is simply not enough water available to
maintain the hydropower reservoirs at their normal levels and maintain an appropriate minimum
flow in the river downstream of the Project. The proposed LIP appropriately considers both
reservoir and river needs, and sets forth actions to be taken by APGI, and others, that will help
to conserve water and strike an appropriate balance between the water needs of the reservoirs
and water needs of the river during low inflow conditions.
7.5 Hydro Project Maintenance and Emergency Protocol -Article PO-5
APGI is proposing that the Commission adopt, as part of the New License, a Hydro Project
Maintenance and Emergency Protocol (HPMEP) for the Yadkin Project. The HPMEP, which is
appended to the RSA, details the steps to be taken by APGI at the Project in the event of an

emergency or unanticipated maintenance situation that requires a change in the normal
operation of the Project.
7.6 Water Quality- Article WQ-1
APGI is committed to operating the Project in accordance with the anticipated conditions of the
Section 401 water quality certification to be issued by the State of North Carolina. A major
emphasis of the certification will require the implementation of necessary measures to insure
that all tailwaters meet state water quality standards for dissolved oxygen.
Technologies to increase tailwater DO conditions are available as possible corrective measures,
but such technologies are time consuming and expensive to install and operate, and result in a
loss in the efficiency of the generating units, and therefore a loss in power generation. To be
effective, aeration technologies have to be designed and installed specific to the dam,
powerhouse, penstock, turbine and tailwater conditions that are unique to each development. In
other words, to be effective, it appears that each development will likely require a site specific
aeration technology.
The most efficient and effective time to do such installations at the Yadkin Project is in
conjunction with other facility sustainability work being planned for the various developments
and units. APGI's plans to refurbish and upgrade the generating units at its four developments
provide a prime opportunity to efficiently and cost effectively install aeration technology, as
needed.
7.6.1 Tailwater Dissolved Oxygen Enhancement Schedule
APGI proposes to undertake a series of Project modifications designed to increase DO
concentrations and enhance water quality in the four Project tailwaters. The fundamental
concept of APGI's proposed DO enhancement schedule will be to first increase DO
concentrations below Narrows and High Rock dams, and then to monitor to see what, if any, DO
enhancement might still be needed at Tuckertown and Falls dams. APGI anticipates these
measures and the related schedule for implementation will become a condition of the CWA 401
Certification issued for the Yadkin Project by the State of North Carolina.
The improved DO concentrations in the Project tailwaters that will be achieved as a result of the
proposed DO enhancements will have many significant benefits. Increasing tailwater DO
conditions will certainly improve habitat conditions for invertebrates, including mussels, and fish,
which in turn should produce better recreational fisheries in these tailwaters. Water quality,
fisheries and macroinvertebrate data collected as part of various relicensing resource studies
demonstrate that the water quality conditions are generally not meeting WQ standards during
the summer months. Moreover, given the short residence times for water in the Tuckertown and
Falls developments, APGI and the Parties expect to see some improvement in tailwater DO
conditions at these two developments as a result of improving DO conditions in the High Rock
and Narrows tailwaters. However, if such improvements are not sufficient to allow these
tailwaters to meet state DO standards, the DO enhancement schedule calls for APGI to take
additional actions to improve DO concentrations in the Tuckertown and Falls tailwaters.
7.6.2 Tailwater Dissolved Oxygen Enhancement Operations
As DO enhancement measures are installed (as described above), APGI will operate the
generating units with DO enhancement equipment added on a "first on-last off' basis, subject to

unit availability, so as to maximize the DO benefit obtained from the available aeration
technology. DO enhancement equipment and measures will be operated beginning no later
than May 1 each year and will continue through November 30 of each year.
During the winter and early spring months, cooler water temperatures and mixing in the
reservoirs generally assures that DO standards are met in the Project tailwaters under normal
Project operations. The operation of the proposed DO enhancement technologies during the
period May 1 through November 30, each year is expected to significantly increase tailwater DO
conditions during the periods of warm water, low flows, and reservoir stratification, all of which
can adversely affect tailwater DO concentrations. Studies of Narrows Unit 4 (where aeration
valves have already been installed) suggest that DO concentrations may be raised as much as
2-4 mg/I at the Narrows Development, when all the DO enhancement measures are completed
there. At High Rock it is more difficult to predict how much DO may be added as a result of the
DO enhancement proposed for that development (utilizing through the blade aeration
technology), but continuous DO monitoring will allow an accurate determination of the
effectiveness of these enhancements once they are completed.
7.7 Dissolved Oxygen Monitoring -Article WQ-2
Monitoring of DO conditions in the tailraces will be critical to determine the effectiveness of the
enhancement measures and operations described previously. The primary component of the
proposed DO monitoring plan will be the operation of four continuous DO/temperature monitors
(one in each tailwater), for the period of May 1 through November 30 of each year. The plan will
also include provisions for conducting two studies as part of the overall DO enhancement
schedule utilizing the continuous DO monitoring data to determine the effectiveness of the
aeration technology installed and assist in determining what additional measures will be
required if the planned measures are not successful in meeting state DO standards.
7.8 Recreational Enhancements -Article REC-1
APGI proposes to upgrade and improve existing recreational facilities and construct new
recreational facilities, including a recreation area with a swim beach at High Rock Reservoir and
ten dispersed campsites - in accordance with Table REC-1 in the RSA which will be reflected in
a Recreation Management Plan.
There are currently over 40 public recreation facilities at the Yadkin Project. These facilities
provide public access for boat launching, fishing, and picnicking at all four Project reservoirs,
and for swimming at High Rock and Narrows reservoirs. Intensive use surveys during
relicensing demonstrate that none of the existing public recreation facilities are currently
exceeding their capacity; however some improvements to existing facilities are needed. The
recreational improvements proposed will appropriately address the needs that were identified
during the relicensing process, including accessibility for the disabled and expanded sanitation
facilities, and will allow the Yadkin Project to meet public recreation demand well into the future.
APGI is also committing to O&M responsibilities for all recreation facilities that provide access to
Project waters. Details regarding APGI's facilities and O&M obligations under the New License
will be documented in a Recreation Management Plan required by proposed Article REC-1.

7.9 Shoreline Management Plan -Article SMP-1
With FERC's approval, APGI will make certain modifications to the Yadkin Shoreline
Management Plan (SMP) as provided in Appendix D of the RSA.
The Yadkin SMP has been in effect for nearly eight years. Over that time, the SMP has been
demonstrated to be protective of the reservoir shoreline and associated environments
However, such protections have only been achieved through non-Project development review
processes and appropriate restrictions on shoreline property development that can affect
Project resources. Based on experience since the initial SMP implementation, APGI has
worked with the other Parties to identify modifications to existing specifications and procedures
applicable to non-Project activities that can be modified while still maintaining the same level of
resource protection. These SMP modifications have been developed in
consultation/collaboration with agencies and other stakeholders and have been designed to
ensure adequate protection to reservoir resources while allowing some changes in certain
shoreline specifications that are of interest to shoreline property owners.
Section 2.4.2 of the RSA discusses the implementation of the SMP modifications. APGI
proposes to implement the modifications to the existing SMP within three months of the effective
date of the New License. As reflected in Article SMP-1, APGI also proposes to file a revised
Shoreline Management Plan after consultation with state and federal agencies and other
interested parties.
7.10 Historic Properties Management Provisions -Article HP-1
APGI proposes to prepare an HPMP for the Yadkin Project. The HPMP will be prepared in
consultation with NC State Historic Preservation Office (NCSHPO), the Catawba Indian Nation,
and other organizations with an interest in cultural issues at the Yadkin Project, and will be filed
with FERC in accordance with Article HP-1.
APGI and NCSHPO have developed a predictive model for the Yadkin Project reservoirs that is
used to establish cultural probability zones in the Yadkin SMP. The identification of areas that
are of potential cultural significance and the establishment in the SMP of processes and
requirements to evaluate the potential impact to cultural resources in these areas that may
occur as a result of activity undertaken within the Project boundary, provide a high level of
protection to cultural sites at the Yadkin Project. APGI, in consultation with NCSHPO and
others will update the cultural probability zones for the Project to protect both prehistoric and
historic sites of significance based on new information on the existence of significant historic
sites and cultural landscapes generated through relicensing studies. The scope of such
activities and other measures for protection of significant cultural sites through the term of the
New License will be outlined in an HPMP for the Yadkin Project.
7.11 Rare, Threatened and Endangered (RTE) Species Management Plan -Article FW-1
APGI proposes to prepare an RTE Species Management Plan for the Yadkin Project. The RTE
Species Management Plan will be prepared in consultation with USFWS, NCWRC, NC Natural
Heritage Program, and other agencies and organizations with an interest in RTE species and
habitats at the Yadkin Project. The RTE Species Management Plan will outline specific actions
to be taken by APGI during the term of its new FERC license to monitor and protect RTE
species and their habitats. The plan will specifically address the needs of the federally listed
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Bald Eagle and Schweinitz's Sunflower, as well as other species of interest including the Yadkin
River Goldenrod and certain freshwater mussel species .
Bald Eagles (Haliaeetus leucocephalus), afederally listed threatened species, have been
nesting in the vicinity of the Yadkin Project over the past several years. Concern about how
shoreline development and use could impact eagle use of the reservoirs led APGI to begin
monitoring bald eagle nesting activities several years ago. Results of the monitoring thus far
suggest that several pairs of breeding eagles have been successful in nesting and rearing
young at the Project. Current nesting sites are generally well protected from human disturbance
by either natural or man-made landscape features. Continued monitoring of eagle nesting
activities will help ensure that adequate nesting habitat is maintained for the birds.
Schweinitz's Sunflower (Helianthus schweinitzii), a federally listed species, occurs in various
locations around the Project. Although this species is not directly impacted by the operation of
the Project, there is concern about potential impacts to the species or its habitat from
recreational use of the Project, vegetation management activities along the Project transmission
lines, and encroachment by non-native, invasive species. APGI proposes to develop specific
management initiatives in the RTE Management Plan to ensure the continued protection of this
species and its habitats within the Project boundary.
Yadkin River Goldenrod (Solidago plumosa) was recently listed as a candidate species by the
USFWS. The only known occurrences of Yadkin River Goldenrod are small populations located
below Narrows and Falls dams. Though most of the existing plants are located in areas that are
not directly impacted by flows from the Project, it seems clear that the plants do benefit from
periodic scouring (produced during extreme flood flow events) which reduces competition. The
plants also appear vulnerable to human activities in the tailrace areas. The NC Rare Plant
Program has been informally monitoring the status of the plants over the past several years.
With APGI's cooperation, monitoring of the Yadkin River Goldenrod populations can continue
and will help protect the plants and their habitat.
7.12 Project Transmission Line Corridor Management Plan -Article FW-2
APGI proposes to develop a Transmission Line Corridor Management Plan (TLC Plan) for the
Yadkin Project. The TLC Plan will be developed in consultation with the NCWRC, USFWS, and
other appropriate state and federal wildlife resource agencies.
Vegetation within the two Project transmission line corridors is maintained by APGI at specific
height limits, depending on location, to ensure the safe and reliable operation of the Project.
APGI has historically maintained the vegetation along the two transmission line corridors
primarily using a variety of mechanical methods and with limited herbicide applications. Under
the proposed TLC Plan, APGI will review these management methods with state and federal
wildlife agencies, and will develop along-term plan for the continued management of
transmission line vegetation that will both ensure the reliability and safety of the two
transmission lines while at the same time protecting and enhancing habitat conditions within the
corridors.
8. Term of New License
The Parties to the RSA unanimously agree to support the issuance of a 50-year New License
from the Commission, and the Parties to the RSA have agreed to advocate for such a term in
any further filings with the Commission.
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9. Resource Questions Not Addressed in the RSA
9.1 Fish Passage
The RSA is silent on the issue of fish passage at the Yadkin Project. The Parties to the RSA
recognize that fish passage is an important issue for the Yadkin-Pee Dee River, but given the
multi-jurisdictional nature of the issue the Parties have determined that fish passage would be
best addressed in a separate, cooperative agreement among the Licensees (APGI and
Progress Energy), the states of North Carolina and South Carolina, and the two federal
agencies with responsibility for managing anadromous fish restoration efforts, the USFWS and
the National Marine Fisheries Service, neither of which is a signatory to the RSA. Negotiations
regarding fish passage at the Yadkin Project are continuing, and all those involved are hopeful
that the fish passage issues for the Yadkin Project will be appropriately addressed in a separate
agreement that will be filed with the Commission. Given the RSA's silence, the RSA will not be
interpreted to preclude any signatory's participation in proceedings under Section 18 of the FPA
9.2 Stanly County and the City of Salisbury
The Parties acknowledge that two non-signatories, Stanly County and the City of Salisbury,
have perspectives that differ, at least in part, from those of the Parties on such issues as the
completeness of the RSA, Project effects and the Licensee's obligations. The Parties
understand that these two non-signatories will continue to press their claims and respectfully
request that FERC confine its relicensing Order to issues that are germane to the
Yadkin Project.
10. Stakeholder Participation
The organizations that have chosen to sign the RSA represent a very broad spectrum of
interests in the relicensing of the Project and the future management of resources potentially
affected by the Project. In particular, signatories include organizations with specific interest in
how High Rock and the other Project reservoirs are managed in the future for recreational
access, shoreline management, habitat protection and power generation. Other signatories
include those with specific interest in protecting and enhancing downstream resources
potentially affected by Project operations and drought contingency planning. By their signatures,
each of these organizations is acknowledging its belief that the proposals embodied in the RSA
represent an appropriate balance among all of the identified competing uses for available water
and related resources.
The Parties acknowledge that there are some stakeholders in the Yadkin Project relicensing
who have chosen not to sign the RSA, despite the significant effort put forth throughout the
relicensing process to provide an inclusive environment for people to communicate their
interests and have them addressed.
11. Conclusion
The Parties respectfully request that the Commission issue a New License to APGI that
includes the specific provisions of the RSA within the Commission's jurisdiction. The Parties
believe that those provisions, together with APGI's plans to make significant investment in the
unit upgrade/rehabilitation program and the non-jurisdictional elements of the RSA comprise a
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proposal that fully meets the comprehensive development and equal consideration provisions of
the FPA.
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