20070812 Ver 1_Approval Letter_20071116

O~O~ W A T ~9QG
r
~_ ~
~ ~
Mr. William Bunker
Alcoa Power Generating Inc.
V.P. Hydro Operations -Yadkin Division
P.O. Box 576
Badin, NC 28009-0576
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Coleen H. Sullins, Director
Division of Water Quality
November 16, 2007
Re: Yadkin Hydroelectric Project
Stanly County
DWQ # 2007-0812; FERC Project No. 2197
APPROVAL of 401 Water Quality Certification with Additional Conditions
Dear Mr. Bunker:
Attached hereto is a copy of Certification No. 003173 issued to Alcoa Power Generating, Inc. dated
November 16, 2007. In addition, you should get any other federal, state or local permits before you go
ahead with your project including (but not limited to) Solid Waste, Sediment and Erosion Control,
Stormwater; Dam Safety, Non-discharge and Water Supply Watershed regulations.
If we can be of further assistance, do not hesitate to contact us.
Si erely,
Col n H. Sullins, Director
CHS/jrd/ijm
Attachments: Certificate of Completion
cc: Becky Fox, EPA, 1307 Firefly Road, Whittier, NC 28789
Alan Johnson, DWQ, Asheville Regional Office
DLR Mooresville Regional Office
File Copy
Central Files
Salisbury
Stanly County
Steve Reed, N.C. Division of Water Resources
FERC staff
Jerry D. Myers, County Manager, Stanly County, 1000 N. First Street, Suite 10, Albemarle, NC 28001
Thomas N. Griffin, III, Three Wachovia Center, Suite 3000, 401 South Tryon Street, Charlotte,
NC 28202-1935
Filename: 070812Yad kinHydroelectricProject(Stanly)401 _IC
401 Oversight/Express Review Permitting Unit
1650 Mail Service Center, Raleigh, North Carolina 27699-1650
2321 Crabtree Boulevard, Suite 250, Raleigh, North Carolina 27604
Phone: [phone] /FAX [phone] /Internet: ~://h2o.enr.state.nc.us/ncwetlands
No°C Carolina
~turally
An Equal Opportunity/Affirmative Action Employer - 50% Recycled/] 0% Post Consumer Paper

Alcoa Power Generating, Inc.
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November 16, 2007
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401 Public Laws 92-500
and 95-217 of the United States and subject to the North Carolina Division of Water Quality (DWQ)
Regulations in 15 NCAC 2H, Section .0500 to relicense the Yadkin Project (High Rock, Tuckertown,
Narrows and Falls reservoirs) on the Yadkin River in Stanly County, North Carolina, pursuant to an
application filed on the May 10, 2007, and in additional correspondence received August 27, 2007 and
October 19, 2007.
The application and supporting documentation provides adequate assurance that the proposed work will
not result in a violation of applicable Water Quality Standards and discharge guidelines. Therefore, the
State of North Carolina certifies that this activity will not violate the applicable portions of Sections 301,
302, 303, 306, 307 of PL 92-500 and PL 95-217 if conducted in accordance with the application, the
supporting documentation, and conditions hereinafter set forth.
This approval is only valid for the purpose and design submitted in the application. If the project is
changed, prior to notification a new application for a new Certification is required. If the property is sold,
the new owner must be given a copy of the Certification and approval letter and is thereby responsible for
complying with all conditions of this Certification. Any new owner must notify the Division and request the
Certification be issued in their name. Should wetland or stream fill be requested in the future, additional
compensatory mitigation may be required as described in 15A NCAC 2H .0506 (h) (6) and (7). If any plan
revisions from the approved site plan result in a change in stream or wetland impact or an increase in
impervious surfaces, the DWQ shall be notified in writing and a new application for 401 Certification may
be required. For this approval to be valid, compliance with the conditions listed below is required.
Conditions of Certification:
Sediment and Erosion Control:
1. Erosion and sediment control practices must be in full compliance with all specifications
governing the proper design, installation and operation and maintenance of such Best
Management Practices in order to protect surface waters standards:
a. The erosion and sediment control measures for the project must be designed, installed,
operated, and maintained in accordance with the most recent version of the North Carolina
Sediment and Erosion Control Planning and Design Manual.
b. The design, installation, operation, and maintenance of the sediment and erosion control
measures must be such that they equal, or exceed, the requirements specified in the most
recent version of the North Carolina Sediment and Erosion Control Manual. The devices
shall be maintained on all construction sites, borrow sites, and waste pile (spoil) projects,
including contractor-owned or leased borrow pits associated with the project.
c. For borrow pit sites, the erosion and sediment control measures must be designed, installed,
operated, and maintained in accordance with the most recent version of the North Carolina
Surface Mining Manual.
d. The reclamation measures and implementation must comply with the reclamation in
accordance with the requirements of the Sedimentation Pollution Control Act.
2. No waste, spoil, solids, or fill of any kind shall occur in wetlands, waters, or riparian areas beyond
the footprint of the impacts depicted in the 404/401 Permit Application. All construction activities,
including the design, installation, operation, and maintenance of sediment and erosion control Best
Management Practices, shall be performed so that no violations of state water quality standards,
statutes, or rules occur;
3. Sediment and erosion control measures shall not be placed in wetlands or waters to the maximum
extent practicable. If placement of sediment and erosion control devices in wetlands and waters is

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November 16, 2007
unavoidable, they shall be removed and the natural grade restored within six months of the date
that the Division of Land Resources has released the project;
Continuing Compliance:
4. Alcoa Power Generation Inc. (APGI) shall conduct project operations and any construction
activities in a manner consistent with State water quality standards (including any requirements
resulting from compliance with section 303(d) of the Clean Water Act) and any other appropriate
requirements of State law and federal law. If the Division determines that such standards or laws
are not being met (including the failure to sustain a designated or achieved use and designated
uses of Badin Lake) or that State or federal law is being violated, or that further conditions are
necessary to assure compliance, the Division may reevaluate and modify this Certification to
include conditions appropriate to assure compliance with such standards and requirements in
accordance with 15A NCAC 2H.0507(d). Before modifying the Certification, the Division shall
notify APGI and the Federal Energy Regulatory Commission (FERC), provide public notice in
accordance with 15A NCAC 2H.0503 and provide opportunity for public hearing in accordance
with 15A NCAC 2H.0504. Any new or revised operating conditions shall be provided to Alcoa
Power Generation Inc. in writing, shall be provided to the FERC for reference in any License
issued pursuant to the Federal Power Act, and shall become conditions of the License to operate
the Yadkin Hydroelectric Project. Any new or revised conditions for construction activities shall
be provided to APGI in writing, shall be provided to the United States Army Corps of Engineers
for reference in any Permit issued pursuant to Section 404 of the Clean Water Act, and shall also
become conditions of the 404 Permit for the project;
Other conditions:
5. Sediment removal at City of Salisbury water supply intake
Alcoa Generating Inc. shall allow access to and provide for dredging operations to remove sand
and other debris that may accumulate at the City of Salisbury's water supply intake whenever the
accumulation of sand and other debris makes use of the intake inoperable. If this condition
conflicts with any existing arrangements between Alcoa and other parties, then additional written
approval is from DWQ to resolve this conflict.
6. Other Relicensing Settlement Agreement Conditions -The following conditions were taken from
appropriate sections of the Relicensing Settlement Agreement related to project operations,
instream flows, water quality, reservoir shoreline protection and compliance monitoring. Any
conflict with these conditions and the Relicensing Settlement Agreement will need additional
written confirmation from DWQ.
a. Project Operations
Unless in accordance with the Hydro .Project Maintenance and Emergency Protocol (HPMEP) and Low
Inflow Protocol (LIP), Project minimum flows take priority over reservoir water elevations, as specifically
described in Articles PO-1 and PO-2, below.
Article PO-1 -Reservoir Operations
A. High Rock Reservoir Operations
The Applicant shall operate High Rock Reservoir at or above the normal minimum elevation (NME) as
depicted on the High Rock Operating Curve (Figure PO-1), except as needed in order to maintain
minimum flows or as provided under the Low Inflow Protocol (LIP) or the Hydro Project Maintenance and
Emergency Protocol (HPMEP). High Rock Reservoir may be drawn down below its NME in order to meet
the Required Minimum Instream Flow at Falls, as specified in Article PO-2, only after Narrows Reservoir
has reached its NME. If High Rock Reservoir water elevation is below the NME at 12:01 AM on any
operating day, where the operating day is defined as 12:01 AM through 12:00 midnight, the Applicant
shall reduce releases from High Rock Reservoir for that operating day up to a maximum of the daily

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November 16, 2007
average flow equivalent of the minimum flow requirement at Falls, as specified in Article PO-2. Under this
condition, releases from Falls will be limited to those defined in Article PO-2.
624.9
623.9
622.9
621.9
~ 620.9
N
~ 619.9
C
~ 618.9
c
0
~ 617.9
d
uJ 616.9
'o
~ 615.9
m
~ 614.9
613.9
612.9
611.9
610.9
Figure PO-1. High Rock Reservoir Operating Curve
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Deg
F II Pond EI vation (62 .9 it)
Note: During periods for fill and drawdown during March and November High Rock
Reservoir would transition between the 4 foot and 10 Operating Curve, with water
elevations increasing or decreasing, as applicable, generally along a straight line.
Normal Minimum Elevation - -Full Pond

Alcoa Power Generating, Inc.
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November 16, 2007
B. Tuckertown Reservoir Operations
The Applicant shall operate Tuckertown Reservoir at or above the NME as depicted on the Tuckertown
Operating Curve (Figure PO-2), except as provided in the HPMEP.
565.7
564.7
563.7
562.7
~ 561.7
y
~ 560.7
559.7
e
0
.~ 558.7
m
w 557.7
'ii
~ 556.7
e
~ 555.7
554.7
553.7
552.7
551.7
Figure PO-2. Tuckertown Reservoir Operating Curve
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Ful Pond Ele ation (56 7 ft)
Normal Minimum Elevation - -Full Pond

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November 16, 2007
C. Narrows Reservoir Operations
The Applicant shall operate Narrows Reservoir at or above the NME as depicted on the Narrows
Operating Curve (Figure PO-3), except as needed in order to maintain minimum flows, or as provided
under the LIP or HPMEP.
510.8
509.6
508.8
507.8
~ 506.8
N
~ 505.8
x
504.8
c
0
503.8
d
w 502.8
.a
~ 501.8
N
~ 500.8
499.8
498.8
497.8
496.8
Figure PO-3. Narrows Reservoir Operating Curve
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Full and Elev lion (509. it)
Normal Minimum Elevation - -Full Pond

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November 16, 2007
D. Falls Reservoir Operations
The Applicant shall operate Falls Reservoir at or above the NME as depicted on the Falls Operating
Curve (Figure PO-4), except as provided in the HPMEP.
333.8
332.8
331.8
330.8
~ 329.8
~ 328.8
+k
327.8
c
0
328.8
m
w 325.8
0
m 324.8
N
~ 323.8
322.8
321.8
320.8
319.8
Figure PO-4. Falls Reservoir Operating Curve
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Full Po d Elevati n (332.8 ft
Normal Minimum Elevation - -Full Pond
E. Reservoir Stabilization to Enhance Fish Spawning
From April 15 through May 15 of each year, the Applicant will endeavor to maintain reservoir water
elevations at all four Project reservoirs no lower than -1.0 feet below the elevation of each reservoir on
April 15 to enhance conditions for fish spawning in the reservoirs. No later than August 31 of each year,
the Applicant will report the resulting reservoir water elevations at each reservoir during the April 15
through May 15 period in a letter report to the North Carolina Wildlife Resources Commission (NCWRC).
The letter report will provide an explanation of any circumstances that prevented the Applicant from
maintaining the target water elevations. Within 60 days of filing the letter report with the NCWRC, a copy
of the letter report will be filed with NCDWQ and FERC. Satisfaction of these reporting commitments
shall constitute compliance with this Article.

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November 16, 2007
Article PO-2 -Project Instream Flows
A. Required Minimum Instream Flows
Commencing no later than six months from the effective date of the License and except when operating
under the Low Inflow Protocol (LIP) or Hydro Project Maintenance and Emergency Protocol (HPMEP), the
Applicant shall operate the Project to provide a daily average minimum flow from the 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
B. Flow Adjustment for Enhancement
of Downstream Spawning
The Applicant will work with the licensee of the Yadkin-Pee Dee River Project, FERC No. 2206,
(Downstream Licensee), the North Carolina Division of Water Resources (NCDWR), the North Carolina
Wildlife Resources Commission (NCWRC), the South Carolina Department of Natural Resources
(SCDNR), the U.S. Fish and Wildlife Service (USFWS), the National Marine Fisheries Service (NMFS),
The Nature Conservancy (TNC) and American Rivers (collectively, Group) to develop a process to allow
the Downstream Licensee to provide adjusted flow between February 1 and May 15 to enhance spawning
conditions in the lower river downstream of the Blewett Falls development, part of the Yadkin-Pee Dee
River Project.
The Applicant's role in enhancing downstream spawning below Blewett Falls will be limited to:
1. Attending an annual meeting with the Group, if held, to consider expected flow and
hydrologic conditions and to schedule adjusted flow period(s) for the upcoming spawning season, and
Once the schedule for adjusted spawning flow period(s) has/have been established by
the Group, the Applicant will communicate its daily generation/flow release schedule during the
adjusted spawning flow period(s) to the Downstream Licensee at least one week in advance of the
start of the adjusted spawning flow period(s). If unexpected hydrologic conditions, or other conditions,
such as those covered in the Low Inflow Protocol (LIP, Appendix A) or the Hydro Project Maintenance
and Emergency Protocol (HPMEP, Appendix B), occur during any adjusted spawning flow period, the
Applicant shall communicate to the Downstream Licensee any resulting changes in its daily
generation/flow release schedule for the remainder of that adjusted spawning flow period.
The Applicant will not be required to attempt to match Yadkin Project outflow to inflow during any adjusted
spawning flow period(s), nor will the Applicant be required to provide an instantaneous minimum flow
release from the Yadkin Project during any adjusted spawning flow period(s).

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November 16, 2007
The Applicant's participation in enhancement of downstream spawning will take place within the confines
of the other requirements of the New License and 401 Water Quality Certification relating to management
of flows and reservoir water elevations, and would not result in any modification of those flow and
reservoir management requirements. Specifically, nothing in this section will require or cause the
Applicant to fall below the Project Minimum Flows as described in Article PO-2 or to have to modify its
reservoir operations as prescribed in Article PO-1.
If state and federal agencies and the Downstream Licensee are unable to come to an agreement on what
measures are to be undertaken by the Downstream Licensee to achieve Flow Adjustment for
Enhancement of Downstream Spawning, the Applicant will be under no obligation to meet the
commitments outlined in Article PO-2, section B.
Article PO-3 -Flow and Reservoir Elevation Monitoring
Within six months of the effective date of the License, the Applicant shall file with the North Carolina
Division of Water Quality (NCDWQ) a final Flow and Reservoir Elevation Monitoring and Compliance Plan
for the Yadkin Project. The Flow and Reservoir Elevation Monitoring and Compliance Plan shall be
developed in consultation with the North Carolina Division of Water Resources (NCDWR), the South
Carolina Department of Natural Resources (SCDNR), the U.S. Geological Survey (USGS) and the
Downstream Licensee (the Licensee of the Yadkin-Pee Dee River Project, FERC No. 2206), and shall
include detailed provisions for monitoring reservoir water elevations and for monitoring flows from both
the Falls and High Rock developments.
The Applicant shall include with the final plan documentation of consultation, copies of comments and
recommendations on the draft plan after it has been prepared and provided to the agencies and
Downstream Licensee, and specific descriptions of how comments are accommodated by the final plan.
The Applicant shall allow a minimum of 30 days for the agencies and Downstream Licensee to comment
prior to filing the plan with the NCDWQ. If the Applicant does not adopt a recommendation, the filing shall
include the Applicant's reasons, based on Project-specific information.
The NCDWQ reserves the right to require changes to the plan. Upon NCDWQ approval, the Applicant
shall submit the plan to the FERC for approval. Upon receiving FERC approval, APGI shall implement
the plan, including any changes required by the NCDWQ. The Applicant shall file the final plan with
NCDWQ within 30 days of receiving FERC approval
A. Releases from High Rock Development
Flow monitoring from the High Rock Development will serve as the measure for the flow releases from the
High Rock Development required under Article PO-1 or under the Low Inflow Protocol (LIP). Daily
average flows within +25% of the applicable maximum flow, measured from 12:01 AM to 12:00 midnight,
shall be considered compliant for each operating day.

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November 16, 2007
B. Releases from Falls Development
Flow monitoring from the Falls Development will serve as the compliance measure for the flow release
from the Falls Development required under Articles PO-1, PO-2 or under the LIP. Daily average flows
within -5% of the applicable minimum flow, measured from 12:01 AM to 12:00 midnight, shall be
considered compliant for any operating day so long as:
a) Whenever High Rock Reservoir is at or above its normal minimum elevation (NME), the
applicable daily average minimum flow is achieved on a weekly average basis, measured from
12:01 AM Saturday to 12:00 midnight Friday.
b) Whenever High Rock Reservoir is drawn down below its NME (when a maximum release from
Falls is also applicable), releases from Falls shall be limited to +/- 5% of the cfs equivalent of the
Required Instream Minimum Flow at Falls, as measured on a weekly average basis from 12:01
AM Saturday to 12:00 midnight Friday.
The Applicant shall endeavor to meet the Required Minimum Instream Flows required in Article PO-2, and
shall not routinely use the flow variances provided above. The Applicant shall prepare an annual flow
monitoring report documenting its compliance with minimum flow releases, including a record of any days
during the year when the daily average required minimum instream flow fell within the -5% and was made
up as part of the weekly average, a record of flows during any period when High Rock was below its
NME, and a record of any LIP events. By no later than March 31 of the following year, the Applicant shall
file the report with NCDWQ of the North Carolina Department of Environment and Natural Resources
(NCDENR) summarizing its evaluation. If, based on the results of the report, the State of North Carolina
has a concern about the frequency or pattern of use of the variance by the Applicant, the State may
request consultation with the Applicant to discuss the Applicant's reasons for that use and any practicable
alternatives to that use.
Article PO-4 -Low Inflow Protocol (LIP)
This Article highlights the responsibilities of the Applicant from Appendix A, "Low Inflow Protocol for the
Yadkin and Yadkin-Pee Dee River Hydroelectric Projects." The complete text of the LIP is also attached
for inclusion by reference in the 401 Water Quality Certificate.
A. Definitions
The following definitions shall be applicable to this Article PO-4:
• Stream Gage Three-Month Rolling Average Flow -The three-month rolling average of
streamflow at the following U.S. Geological Survey (USGS) stream gages:
o Yadkin River at Yadkin College (02116500)
o South Yadkin River near Mocksville (02118000)
o Abbotts Creek at Lexington (02121500)
o Rocky River near Norwood (02126000)
On the last day of each month, the Applicant shall calculate the arithmetic mean of (a) the daily flows
of the current month and (b) the arithmetic mean of the daily flows of each of the two preceding
months. The sum of the three-month rolling average for these four gage stations shall be compared
by the Applicant to the Historic Stream Gage Three-Month Rolling Average Flow for the
corresponding period and a percentage of Historic Three-Month Rolling Average shall be calculated.
• Historic Stream Gage Three-Month Rolling Average Flow -The historical three-month
rolling average flow for each of the four designated USGS stream gages for the period 1974
through 2003 (except for the Abbotts Creek gage, for which the period is 1988 through 2003) are
set forth in Table LIP-1 below:

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November 16, 2007
Table LIP-1. Historic Stream Gage Three-Month Rolling Average Flow
For Evaluation of Flow
Trigger on: Average~of daily. flows
Yduring; Historic Three-Morth
Rolling
Average Flow, cfs
January 1 Oct-Nov-Dec 4,000
February 1 Nov-Dec-Jan 5,200
March 1 Dec-Jan-Feb 6,250
April 1 Jan-Feb-Mar 7,700
May 1 Feb-Mar-Apr 7,550
June 1 Mar-Apr-May 6,850
July 1 Apr-May-Jun 5,350
August 1 May-Jun-Jul 4,200
September 1 Jun-Jul-Aug 3,600
October 1 Jul-Aug-Sep 3,200
November 1 Aug-Sep-Oct 3,300
December 1 Sep-Oct-Nov 3,550
• Full Pond Elevation -The Full Pond Elevation for each development's reservoir is listed in
Table LIP-2.
Table LIP-2. Full Pond Elevations
Reservoir Full Pond Elevation ~, ~'
(feet, USG,S datum - NG'VD 1929)
Hi h Rock 623.9
Tuckertown 564.7
Narrows 509.8
Falls 332.8

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November 16, 2007
3.
Normal Minimum Elevation (NME) - NME for each Project reservoir is listed in Table LIP-
Table LIP-3. Normal Minimum Elevations feet, USGS datum - NGVD 1929)

Month
High Rock Tucker-
town
Narrows
Falls
FUJI Pond 623.9 564.7 5Q,9:8 ~ 332.8
Janua 1 613.9 561.7 504.8 328.8
Februa 1 613.9 561.7 504.8 328.8
March 1 transition 561.7 504.8 328.8
A ril 1 619.9 561.7 504.8 328.8
Ma 1 619.9 561.7 504.8 328.8
June 1 619.9 561.7 504.8 328.8
Jul 1 619.9 561.7 504.8 328.8
Au ust 1 619.9 561.7 504.8 328.8
Se tember 1 619.9 561.7 504.8 328.8
October 1 619.9 561.7 504.8 328.8
November 1 transition 561.7 504.8 328.8
December 1-15 613.9 561.7 504.8 328.8
December16-31 613.9 561.7 504.8 328.8
• U.S. Drought Monitor Three-Month Numeric Average -The Applicant shall calculate a
three-month rolling average of U.S. Drought Monitor
(http://www.drought.unl.edu/dm/monitor.html.) values by (a) assigning a numeric value equal to
the highest U.S. Drought Monitor designation (e.g. D0=0, D1=1, D2=2, D3=3 and D4=4) for any
part of the Yadkin-Pee Dee River Basin draining to Blewett Falls development as of the last day
of that month; and (b) calculating an arithmetic mean of that numeric value and numeric values
correspondingly assigned for the previous two months. A normal condition in the basin, defined
as the absence of a drought designation, shall be assigned a numeric value of negative one (-1 ).
• Yadkin-Pee Dee River Basin Drought Manaoement Advisory Group (YPD-DMAG) -The
YPD-DMAG shall consist of one representative from each of the following organizations (to the
extent that they are willing to participate): Alcoa Power Generating Inc. (APGI), Progress Energy
(PE), North Carolina Department of Environment and Natural Resources (NCDENR), North
Carolina Division of Water Resources (NCDWR), North Carolina Division of Water Quality
(NCDWQ), North Carolina Wildlife Resources Commission (NCWRC), South Carolina
Department of Natural Resources (SCDNR), South Carolina Department of Health and
Environmental Control (SCDHEC), the United States Fish and Wildlife Service (USFWS), High
Rock Lake Association (HRLA), Badin Lake Association (BLA), Duke Power Company, Lake
Tillery Homeowners Association, South Carolina Pee Dee River Coalition (SCPDRC) and owners
of intakes that withdraw more than one million gallons of water per day from the impoundments of
either the Yadkin Project (FERC Project 2197) or the Yadkin-Pee Dee Project (FERC Project
2206).

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B. Implementation Procedure
1. Table LIP-4 sets forth the combinations of conditions under which the LIP shall be implemented.
The determination of the applicable LIP Stage shall be made using the High Rock Reservoir water
elevation as of midnight between the last day of the previous month and the first day of the current
month in combination with the U.S. Drought Monitor Three-Month Numeric Average and the Stream
Gage Three-Month Rolling Average Flow to determine the need to declare or change a Stage of the
LIP. The LIP shall be implemented beginning at Stage 0 and, if the combination of conditions
becomes more severe, the Stages shall increase in one Stage increments.
Table LIP,-4. Summary of LIP Triggers
Stream Gage,Th7ee-
High
US Drought Month Rolling
'
Rock Monitor:Three- Average.
as a percent
Stage Reservoi Month Numeric of the
r
Elevation Average
Historical
Avera e
< NME
minus 0.5 and any or any
ft
p, OR
and
< NME eith >_ 0 or < 48
er

< NME and
eith
z 1
or
< 41
minus 1 ft
er
and
y < NME eith >_ 2 or <35
minus 2 ft
er
and
3 < NME eith >_ 3 or <30
minus 3 ft
er
<'/: of (NME minus and
4 Critical Reservoir eith ? 4 or <30
Water Elevation) er

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November 16, 2007
2. The average daily flows set forth in Table LIP-5 shall be initiated no later than seven days after
the determination of the applicable LIP Stage and shall be in effect for the balance of the month
except as provided in the section titled "Recovery from LIP Stages."
Table-LIP-5. LIP Flowst'~, cfs -
High Rock Falls«~
(daily average
' (daily average flow target)
maximum flow tar
et
Stage
Feb 1- Jun 1-
Feb 1-
May 16-31 Jun 1-
May 15 May t6-31 Jan 31 .Ma 1,5: ; Jan 31
U 2000 1500 1000 2000 1500 1000
1450 1170 900 1450 1170 900
2 1080 950 830 1080 950 830
3 770 770 770 770 770 770
4 Additional measures may be determined by consensus of the Applicant and State Agencies, subject
to NCDWQ a royal
1 (1) Developments shall be operated to achieve the target flows to the extent practicable as a first
priority and to supplement inflows equitably from the storage reservoirs as a second priority. For LIP
Stages 1, 2, 3 and 4, APGI shall achieve the indicated average daily flows set forth in this table by
supplementing Project inflows by drawing proportionally from High Rock and Narrows reservoirs such
that the difference between the respective drawdowns below NME of High Rock and Narrows
reservoirs shall be approximately one foot.
2
3 (2) For LIP Stages 0-3, the values shown in this table reflect flow targets. These values cannot be
met exactly as shown and shall likely vary slightly on a real time basis from the values shown here, but
it is ex ected that the variances from the tar et flows shall be minimal.
3. The Applicant shall notify via email the NCDWR of LIP implementation or a change in Stage as
soon as practicable but no later than (i) three business days after a Stage 0 determination; (ii) two
business days after a Stage 1 or a Stage 2 determination; or (iii) 48 hours after a Stage 3 or Stage 4
determination.
4. The Applicant shall consult with the YPD-DMAG with respect to issues relating to or arising out of
implementation of the LIP, including, but not limited to, (i) notification to the public of the possible
effects of and/or continuance of drought; (ii) issues relating to the effects of drought conditions on life,
health, property, wildlife, aquatic life; (iii) possible public health concerns; and (iv) short and long term
prospects for recovery from drought.
5. The Applicant shall develop and provide information on its website to inform the public on
reservoir water elevations, Project releases, usability of public access areas, reservoir inflows,
meteorological forecasts, Historic and Actual Stream Gage Three-Month Rolling Average Flow
calculations, U.S. Drought Monitor Three-Month Numeric Average calculations, LIP status, YPD-
DMAG meeting summaries, and implementation of maintenance or emergency operation plans.

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November 16, 2007
C. Recovery from LIP Stages
1. Recovery from the LIP shall be triggered by the occurrence of any of the three following
conditions either separately or in combination:
Condition 1: All three triggering conditions associated with a lower numbered LIP Stage,
as described in Table LIP-4, are met.
OR
Condition 2: High Rock Reservoir water elevations return to at or above the NME plus 2.5
ft.
OR
Condition 3: High Rock Reservoir water elevations return to at or above the NME for 2
consecutive weeks.
2. When any of these three conditions occurs, the Applicant shall take the following actions as
indicated by the particular condition:
Condition 1: The LIP recovery shall be a stage-by-stage reversal of the staged
approach described in Table LIP-4 above, beginning at the first day of each
month.
Condition 2: Implementation of the LIP shall be immediately discontinued.
Condition 3: Implementation of the LIP shall be immediately discontinued.
3. The Applicant shall notify the NCDWR via email within 3 business days following attainment of
any of the conditions necessary to return to a lower stage of the LIP.
D. Updating the LIP
During the term of this license, the Applicant shall consult with the YPD-DMAG at least once every five (5)
years to review and consider updating the LIP. The use of the period of record 1974 through 2003 to
calculate the Historic Stream Gage Three-Month Rolling Average flows set forth in Table LIP-1 of this
Article shall be evaluated every five years during such review. On the basis of such consultation, review
and consideration, the Applicant may propose modifications to this Article for the NCDWQ's review and
approval.

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November 16, 2007
E. Funding of Gages
Assuming the U.S. Geological Survey (USGS) has necessary rights for the License term, the Applicant
shall continue to provide 100% funding support during the License term for the maintenance of the
following USGS standard flow gages that are used in the LIP to determine the Three-Month Rolling
Average Flow:
• Yadkin River at Yadkin College (02116500)
• South Yadkin River near Mocksville (02118000)
• Abbotts Creek at Lexington (02121500)
Any substantial increase in funding support due to changes in these flow gages are subject to review by
the Applicant with the North Carolina Department of Environment and Natural Resources (NCDENR).
The Applicant may review and propose changes in the contractor, location, or equipment associated with
these gages. Any changes proposed by the Applicant will require agreement of NCDENR's Division of
Water Quality.
Article PO-5 -Hydro Project Maintenance and Emergency Protocol
If conditions so warrant, the Applicant shall operate the Project in accordance with the Hydro Project
Maintenance and Emergency Protocol (HPMEP) included as Appendix B, "Yadkin Project Hydro Project
Maintenance and Emergency Protocol." The complete text of the HPMEP is also attached for inclusion
by reference in the 401 Water Quality Certificate.

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November 16, 2007
b. Water Quality
Article WQ-1 -Water Quality
A. Tailwater Dissolved Oxygen Enhancement Schedule
The Applicant shall install equipment and implement measures designed to enhance Yadkin Project
(Project) tailwater dissolved oxygen (DO) conditions as specified in the schedule in Table WQ-1.
T.,L,Ie 1AIf1_4 rlieenlvnr! (lvvnon Fnhaneamant anf'I MAnltArlnd Schedule
Year. DO Enhancement•Action 'Monitoring%R~por4ing
2007' -Continuous DO/temperature monitoring 5/1-11/30 at existing
stations in all four tailwaters.
- File Draft DO Monitoring Plan and Quality Assurance Project Plan
(QAPP) with the North Carolina Division of Water Quality (NCDWQ)
as part of 401 Application.
20081 Narrows Unit 2 -Addition of two -Continuous DO/temperature monitoring 5/1-11/30 at existing
aeration valves by 03/31/08. stations in all four tailwaters.
- File Final DO Monitoring Plan and QAPP for approval by NCDWQ
and the Commission.
2009 Narrows Unit 1 -Addition of two -Implement NCDWQ/FERC approved DO Monitoring Plan.
aeration valves by 12/31/09.
- File annual DO monitoring data report with NCDWQ by March 31.
2010 Narrows Unit 3 -Addition of two -Monitoring/reporting in accordance with DO Monitoring Plan.
aeration valves by 12/31/10.
High Rock Unit 3 -Install "through
the blade" aerating turbine by
12/31 /10.
2011 High Rock Unit 2 - Install a "through -Monitoring/reporting in accordance with DO Monitoring Plan.
the blade" aerating turbine by
12/31/11.
-Initiate special study (up to 2 years) to evaluate the effectiveness of
the aeration at Narrows on DO levels being discharged from Falls
(2011-2012).
2012 High Rock Unit 1 - Install a "through -Monitoring/reporting in accordance with DO Monitoring Plan.
the blade" aerating turbine by
12/31/12.
-Complete second year of 2-year study of effectiveness of aeration at
Narrows on DO at Falls by 12/31/12 and prepare Study Report.
2013 -Monitoring/reporting in accordance with DO Monitoring Plan.
- File 2-year Narrows/Falls DO Study Report with NCDWQ by 3/1/13.
- If 2-year study does not demonstrate compliance at Falls, file an
Action Plan for DO (DOAP) enhancement at Falls with NCDWQ by
12/31 /13.
-Initiate special study (up to 2 years) to evaluate the effectiveness of
aeration at High Rock on DO levels being discharged from
Tuckertown (2013-2014).
2014 Falls Unit 1 -Install aeration valves -Monitoring/reporting in accordance with DO Monitoring Plan.
or other appropriate aeration
technology, if needed, in accordance -Complete second year of 2-year study of High Rock/Tuckertown
with Falls Action Plan by 12/31/14. DO by .12/31/14 and prepare Study Report.

Alcoa Power Generating, Inc.
Page 18 of 20
November 16, 2007
Year DO Enhancement Action ' Monitoring/i2eporting ,
2015 Falls Unit 2 -Install aeration valves -Monitoring/reporting in accordance with DO Monitoring Plan.
or other appropriate aeration
technology, if needed, in accordance -File 2-year High Rock/Tuckertown DO Study Report with NCDWQ
with Falls Action Plan by 12/31/15. by 3/1/15.
- If 2-year study does not demonstrate compliance at Tuckertown,
file an Action Plan for DO enhancement at Tuckertown by 12/31/15.
2016 Falls Unit 3 -Install aeration valves -Monitoring/reporting in accordance with DO Monitoring Plan.
or other appropriate aeration
technology, if needed, in accordance
with Falls Action Plan by 12/31/16.
Tuckertown -Install aeration
technology, if needed, at
Tuckertown in accordance with
Tuckertown Action Plan by 12/31/16.
Notes: 1 Actions to be taken under the current, existing FERC License for the Yadkin Project, not the
New License
2 The schedule shown starting in 2008 assumes an effective date of the New License for the
Yadkin Project of or before May 1, 2008. If the effective date of the New License is after
May 1, 2008, the schedule will be adjusted such that the 2008 schedule would begin within
the year following the effective date of the New License, as provided in a revised schedule
that has written approval from NCDWQ.
B. Tailwater Dissolved Oxygen Enhancement Operations
As DO enhancement equipment or measures are installed or implemented on the schedule in Table WQ-
1, the Applicant shall operate the generating units with DO enhancement equipment added on a "first-on-
last-off' basis, subject to unit availability, from no later than May 1 of each year through November 30 of
each year. If DO enhancement equipment or measures are not associated with generating equipment,
once completed, that equipment or those measures shall be operated or implemented as designed from
no later than May 1 of each year through November 30 of each year.
If at any time during the term of the New License, the Applicant can demonstrate through studies and/or
monitoring that DO conditions have improved, the Applicant may consult with the North Carolina Division
of Water Quality (NCDWQ) regarding the possibility of reducing the period of DO enhancement
operations (May 1 -November 30). Should any such consultation result in an agreement between the
Applicant and the NCDWQ to modify the operation of the Project for purposes of DO enhancement, the
Applicant shall consult with the NCDWQ to develop a plan to revise DO enhancement operations. The
Applicant shall include with the plan, an implementation schedule, documentation of consultation, copies
of comments and recommendations on the plan after it has been prepared and provided to NCDWQ, and
specific descriptions of how NCDWQ's comments are accommodated by the plan. The Applicant shall file
the plan with the FERC within 30 days of receiving NCDWQ's written approval of the plan.

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November 16, 2007
Article WQ-2 -Dissolved Oxygen Monitoring
Within six months of the effective date of the New License, the Applicant shall file with NCDWQ a
Dissolved Oxygen Monitoring Plan (DO Monitoring Plan) and Quality Assurance Project Plan (QAPP) for
the Project. The DO Monitoring Plan and QAPP will be developed in consultation with NCDWQ and other
appropriate state and federal resource agencies.
The primary component of the DO Monitoring Plan will be the operation of four (4) continuous
DO/temperature monitors (one in each tailwater), for the period May 1 through November 30 of each
year. The Plan shall include a schedule for preparing an annual DO and temperature data report. The
annual report shall be filed with NCDWQ and the Downstream Licensee no later than March 31 of the
following year.
The Plan shall also include provisions for conducting two studies as part of the overall DO enhancement
schedule (Table WQ-1) designed specifically to investigate the effectiveness of aeration technology
installed and operating at Narrows on the DO conditions in the Narrows and Falls tailwaters, and the
effectiveness of aeration technology installed and operating at High Rock on DO conditions in the High
Rock and Tuckertown tailwaters. At the completion of each of the two studies, the Applicant shall prepare
a study report which shall be filed with NCDWQ in accordance with the schedule in the DO Monitoring
Plan. If the study results demonstrate that the Falls and/or Tuckertown tailwaters do not meet state
dissolved oxygen standards as a result of Project operations, the Applicant shall prepare a DO Action
Plan (DOAP) for the Falls and Tuckertown developments, respectively. The resulting DOAP(s), if
needed, will be filed with NCDWQ in accordance with the schedule shown in Table WQ-1.
The Applicant shall file the DO Monitoring Plan with the FERC within 30 days of receiving NCDWO's
written approval of the plan. The Applicant shall include with the DO Monitoring Plan an implementation
schedule, documentation of consultation, copies of comments and recommendations on the plan after it
has been prepared and provided to NCDWQ, and specific descriptions of how NCDWQ's comments are
accommodated by the plan.
Article WQ-3 -Additional Dissolved Oxygen Enhancement Actions
If at any time during the term of the New License, after all the DO enhancement equipment and measures
outlined in Table WQ-1 have been installed and implemented, all of the planned unit upgrades have been
completed and the upgraded units are operational, and at least two additional years of monitoring have
been completed, the Applicant is notified by the NCDWQ that based on the results of monitoring under
the DO Monitoring Plan, State water quality standards are not being met as a result of the Applicant's
hydroelectric operations, the Applicant shall consult with the NCDWQ to develop a plan to implement
corrective actions. The Applicant shall file a Dissolved Oxygen Corrective Action Plan (DOCAP) for
NCDWQ approval within one year of initiating consultation with the NCDWQ. The Applicant shall include
with the DOCAP an implementation schedule, documentation of consultation, copies of comments and
recommendations on the plan after it has been prepared and provided to NCDWQ, and specific
descriptions of how NCDWQ's comments are accommodated by the plan. The Applicant shall file the
plan with the FERC within 30 days of°receiving NCDWQ's written approval of the plan.
Article WQ-4 -Total Maximum Daily Load Process
The Applicant agrees to participate in the High Rock Total Maximum Daily Load (TMDL) process for High
Rock Reservoir initiated by the State of North Carolina in 2005. The Applicant will contribute up to
$50,000 in in-kind services for planned water quality sampling efforts, upon notification that the Yadkin-
Pee Dee River Basin Association has received federal or state grants of at least $50,000, for which the
Applicant's contribution will be used as the required "matching funds".
If, during the term of the New License, other TMDL processes are required for the Yadkin River or its
tributaries, within the Project Boundary of the Yadkin Project, the Applicant will participate in these
processes.

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November 16, 2007
c. Shoreline Management
Article SMP-1 -Shoreline Management Plan
The Applicant shall file a revised Shoreline Management Plan (SMP) for the Project with the Federal
Energy Regulatory Commission within two years of the effective date of this License. The Applicant shall
revise the SMP in consultation with state and federal resource agencies and other interested parties. The
Applicant shall provide the consulted parties with a 30-day period to review and comment on a draft
revised SMP. The Applicant shall include with its filing copies of all comments received on the draft
revised SMP and a discussion of those comments, including whether the Applicant adopted the
comments or the Applicant's rationale for not incorporating the comments in the final revised SMP.
Additional written DWQ approval is needed for this shoreline management plan notably for those issues
related to water quality such as buffer zones and management of shoreline erosion.
Upon Federal Energy Regulatory Commission approval, the Applicant shall implement the approved
SMP, including any changes required by the Commission.
d. Incorporation of Appendix A and B by reference.
The following Appendices are hereby incorporated by reference as conditions to this Certification
and are drawn verbatim from the Relicensing Settlement Agreement. In a few instances, "NCDWQ"
should be substituted for "FERC" or "Commission" in these appendices -specifically in the sections that
describe approval of LIP or HPMEP updates or revisions, and approval of additional stages (level 4 and
beyond) to the LIP.
Appendix A: Low Inflow Protocol for the Yadkin & Yadkin-Pee Dee River Hydroelectric Projects
Appendix B: Yadkin Project, Hydro Project Maintenance and Emergency Protocol
Also, this approval to proceed with your proposed impacts or to conduct impacts to waters as
depicted in your application shall expire upon expiration of the new FERC License and any Annual
Licenses issued after the expiration of the new License.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing upon written
request within sixty (60) days following receipt of this Certification. This request must be in the form of a
written petition conforming to Chapter 1506 of the North Carolina General Statutes and filed with the
Office of Administrative Hearings, 6714 Mail Service Center, Raleigh, N.C. 27699-6714. If modifications
are made to an original Certification, you have the right to an adjudicatory hearing on the modifications
upon written request within sixty (60) days following receipt of the Certification. Unless such demands
are made, this Certification shall be final and binding.
This the 16th day of November 2007
DIVISION OF WATER QUALITY
/~
Coleen H. Sullins, Director
C HS/jrd

Certification of Completion
DWQ Project No.: County:
Applicant:
Project Name:
Date of Issuance of Certification or Authorization:
Certificate of Completion
Upon completion of all work approved within the 401 Water Quality Certification and Buffer Rules, and any
subsequent modifications, the applicant is required to return this certificate to the 401 Oversight/Express Permitting Unit,
North Carolina Division of Water Quality, 1650 Mail Service Center, Raleigh, NC, 27699-1650. This form may be
returned to DWQ by the applicant, the applicant's authorized agent, or the project engineer. It is not necessary to send
certificates from all of these.
Applicant's Certification
I, ,hereby state that, to the best of my abilities, due care and diligence was
used in the observation of the construction such that the construction was observed to be built within substantial
compliance and intent of the 401 Water Quality Certification and Buffer Rules, the approved plans and specifications,
and other supporting materials.
Signature: Date:
Agent's Certification
1, ,hereby state that, to the best of my abilities, due care and diligence was
used in the observation of the construction such that the construction was observed to be built within substantial
compliance and intent of the 401 Water Quality Certification and Buffer Rules, the approved plans and specifications,
and other supporting materials.
Signature:
Date:
If this project was designed by a Certified Professional .~'
I, as a duly registered Professional (i.e., Engineer,
Landscape Architect, Surveyor, etc.) in the State of North Carolina, having been authorized to observe (periodically,
weekly, full time) the construction of the project, for the Permiee hereby state that, to the best of my abilities, due care
and diligence was used in the observation of the construction such that the construction was observed to be built within
substantial compliance and intent of the 401 Water Quality Certification and Buffer Rules, the approved plans and
specifications, and other supporting materials.
Signature: Registration No. Date