20030179 Ver 6_Public Comments_20061211

Duke
Energy®
December 1, 2006
Mr. John Dorney
NC Division of Water Quality
2321 Crabtree Blvd.
Raleigh, NC 27604
DEC 1 1 2006
;JENR - WATT L1UALiTY
YWc'f;,pNDS PAD STORMWAIER BRANCH
526 South Church Street
Charlotte, NC 28202
JEFFREY G. LINEBERGER, P.E.
Manager, Hydro Licensing
Mail Cotle: EC12Y
704-382-5942
jglinebe@duke-energy. com
SUBJECT: Application for 401 Water Quality Certification -Duke Energy Carolinas, LLC
Hydro Project Relicensing (Project No. 2602-005 Dillsboro Dam Relicensing;
Project No. 2686-032 West Fork Tuckasegee; Project No.
2698-033 East Fork Tuckasegee; Project No. 2603-012 Franklin;
Project No. 2601-007; Bryson; Project No. 2692-032 Nantahala;
Project No. 2619-012 Mission)
Dear Mr. Dorney:
Several letters have been sent to you requesting that the NC Division of Water Quality
(NCDWQ) hold public meetings in the Nantahala area before acting on the 401 Water Quality
Certification applications for the above listed projects. The Town of Dillsboro submitted a letter
on August 25, 2006 (Attachment A) (later rescinded on September 2, 2006 (Attachment B)).
Jackson County submitted a letter on August 25, 2006 (Attachment C), and Swain County
submitted a letter on August 30, 2006 (Attachment D), which was followed by another letter on
September 13, 2006 (Attachment E).
All of these letters are essentially the same, requesting a public meeting and claiming that Duke's
actions to withdraw and refile 401 Water Quality Certification applications for these projects are
"controversial actions."
As the NCDWQ decides how to handle these requests, Duke thought it would be helpful to point
out several facts.
First, when the license applications were filed with the Federal Energy Regulatory Commission
(FERC) for these hydro projects in 2003 and 2004, FERC rules required that the license
applicant must have already applied to the State fora 401 Water Quality Certification. Since
FERC license application processing is typically lengthy and can take two years or more, the
one-year period during which the State 401 water quality agency must act on the 401 application
usually expires before the FERC acts. If the State water quality agency were to fail to take any
action within that one-year period, the 401 Water Quality Certification would be deemed waived.
To avert waiver, the agency must choose between granting the certification, which it may not be
prepared to do, or denying it, which it may be reluctant to do since that is likely to result in an
administrative appeal. The typical practice to avoid this dilemma is for the 401 Water Quality
www.doke-energy. com

Mr. John Dorney
December 1, 2006
Page 2
Certification applicant to withdraw its application and immediately reapply to restart the one-
year regulatory clock. This is standard industry practice and has occurred in hundreds of hydro
project licensing proceedings.
That is in fact exactly what Duke did with respect to its applications for 401 Water Quality
Certifications for the projects identified above.
Ironically, the Division has already issued one 401 Water Quality Certification -the one related
to Duke's surrender application for removal of the Dillsboro dam. The concerns expressed in
these letters requesting public meetings relate in large part to the removal of the Dillsboro dam,
not the relicensing of Dillsboro and the other projects. However, it is too late to hold a public
meeting on the 401 Water Quality Certification for the removal of the Dillsboro dam, since it has
already been issued.
Moreover, the FERC licensing process is, itself, a very open process and numerous public
meetings have already been held for the public to ask questions and express concerns regarding
both the relicensing of these projects and the surrender of the Dillsboro license (removal of the
dam and powerhouse at Dillsboro).
Public input concerning the relicensing of the East Fork, West Fork, Dillsboro and Nantahala
projects began in earnest in September 2000 when Duke, in cooperation with the NC Division of
Water Resources (NCDWR) convened a large group of stakeholders on the Tuckasegee River
followed in November 2001 by the convening of a similar stakeholder group on the Nantahala
River to attempt to understand and resolve the many interests relative to the relicensing of these
hydro projects. The NCDWQ and Swain County were represented on both stakeholder teams
and the Town of Dillsboro and Jackson County were represented on the Tuckasegee stakeholder
team. These two stakeholder teams, which were also supported by over 30 study teams, met
regularly (usually monthly) over atwo-year period. At these meetings, which were also open to
the public, many detailed discussions occurred in which scientific and engineering information
was shared, stakeholder interests were expressed and many proposals were considered for future
hydro project operation. After investing more than 9,000 person-hours in formal meetings, in
October 2003, 30 of the 44 involved organizations signed settlement agreements resolving their
interests relative to these four hydro projects and also partially addressing issues at the Mission,
Bryson and Franklin projects.
On February 10, 2004, there were two scoping meetings held in Franklin, N.C., and Sylva, N.C.,
for the Dillsboro, Franklin, and Bryson projects. These meetings were organized by the FERC in
order to obtain additional oral comments on each project.

Mr. John Dorney
December 1, 2006
Page 3
Additional scoping meetings were also held by the FERC the following day, February 11, 2004,
in Hayesville, N.C. These meetings were held to obtain oral comments on the Mission Project.
The following chart depicts the attendees for these two meetings.
Approx.
Total # Speakers Speakers
Meeting Date Location /Time Meeting
Speakers For Against
Attendance
Feb. 10, 2004 Franklin, N.C. 30 8 4 4
Feb. 10, 2004 Sylva, N.C. 50 11 5 6
Feb. 11, 2004 Hayesville, N.C. 18 4 0 4
(mid-day)
Feb. 11, 2004 Hayesville, N.C. 65 16 0 16
(ni ht)
During December 2004, scoping meetings were held by the FERC on the 7t", 8th, and 9th in
Bryson City, N.C., and Sylva, N.C. On December 7, 2004, the meeting was to obtain oral
comments for the Nantahala Project, and on the 8th and 9th' the meetings were to obtain oral
comments for the East Fork and West Fork projects.
There were approximately 29 attendees (including the FERC-5, Duke-4, U.S. Forest Service
(USFS), NCDWR, NC Wildlife Resources Commission (NCWRC), Court Reporter, and U.S.
Fish & Wildlife Service (USFWS)) at the December 7, 2004, meeting that took place at 2:00
p.m. The December 7, 2004, 6:00 p.m. meeting had approximately 26 attendees (including the
FERC-5, Court Reporter, Duke-13, USFS, USFWS, and NCDWR). There were about 40
attendees at the December 8, 2004, 2:00 p.m. meeting (including the FERC-5, Court Reporter,
and Duke-15). At the 6:00 p.m. meeting on December 8, 2004, there were about 45 people in
attendance (including the FERC-5, Court Reporter, Duke-15, USFS, USFWS, NCWRC, and
NCDWR.) On December 9, 2004, at the 2:00 p.m. meeting, there were about 30 people in
attendance (including the FERC-5, Court Reporter, and Duke-11). At the 6:00 meeting, on the
same day, there were about 57 people (including the FERC-5, Court Reporter, and Duke-15).
Another public meeting was held by the FERC on June 8, 2006, for additional oral comments on
the Draft Environmental Assessment for the East Fork, West Fork, and Bryson projects. There
were approximately 100 people in attendance and 31 gave verbal presentations. After the
meeting, an additiona145 comment letters were received by the FERC through July 10, 2006.
While the NCDWQ must follow its rules and procedures regarding the 401 Water Quality
Certification process and requests for public meetings, it is clear that there have already been
ample opportunities for public participation. The parties requesting these public meetings have
been active participants, negotiating for their interests on the stakeholder teams, filing numerous
comments with the FERC, and their representatives have attended, and made statements at, many
of the meetings already held. Duke does not believe that additional public meetings are
necessary to establish the relevant facts and characterize the relevant public interests so the State

Mr. John Dorney
December 1, 2006
Page 4
can make decisions on the requested 401 Water Quality Certifications. However, if the State
decides that more public input is needed, then Duke suggests that the State convene a single
public meeting at a location that is centrally located within the Nantahala Service Area (e.g.,
Franklin, NC).
Sincerely,
L- , ,
Jeffrey G. Lineberger, P.E.
Manager, Hydro Licensing
Duke Energy
JGL/pr
Attachments: (5)

EXHIBIT A
~,~ o~ nzz~s~o
~~ ` l O JEnN HARTBARGER
HOARD MEMBJ:RS: MAYOR
JdlIN FAULIC
JIM DUKES
JIM CAGE
8UG1 SMfM
"Heart of Gnat Smokier Vacationland"
August 25, 2UU6
Ivfr. John Dorsey
NC Div, t?f Water C~1ity
2321 Crab~ec blvd
lZeleig~i NC 27644
1tE: Applxcatio~n fox aol watl~ Quality ee~tt~won-Du>~ power ~li~e~ (~roi~oc
No. 2602-005 Dillsboro Dam ltalicensio~; l'Iroject No. 2686-032 West Fork Tuekascgee;
Project No. 2698033 Fast Fork Tucksseg~ee; Ptrrj~t No 2603-012 F>ra>ntlclitl;l'roject No.
2601-00'7; $ryson; lyrojoct No. 2692-032 Naats~hala; l'xoject No. 2619-Oa 2 Mission)
Dr~r Mr. Dolcuey:
MIKE FfRCrE'NALU
VItrE MAYOR
HERBERTNOLAN
TOWN CLERK
WC udderstand that Duke Energy has withdrsa+n and re-subrxlatted am application for 401 Water
Q~-ty Certification for the above referenced projects. We feel that this is a co>Itttri'Versial action
that alTects aU tb~e c~dzens of Dillsboro and Jacksoq County. 'Therefore, prioz to your agency
taking any action of this request, a public meeting should be held to allow the people of this
Town to express their views about theso project4. As recently as Jude 2006 nearly all of the
business owners in the Town of Dillsbom signori a petition apposing the removal of the
Ailasboto Dam.
As you know, Dula lrracrgy p1aAS to carry out questionsbte mitigation measures in exchange for .
the operation of tho Lust end West For1c Y~ydroclecttie Pmject and the removal of the Dillsboro
Dam in Jackson County. We feel that this is not in the best interest of the citizens of the Town of
Dillsbom and therefore, request that no action be taken on this 401 Certification until such time
~ pttbllc meefiing ~, be held iu sylva, Nc.
sincerely,
~i`~~~
Mayor
Tow,a of Dillsboro
ce: Joizn Snow, Senator
I'ltil IJaix+e, Rept'eseptsative
P(3. Box 108& Dillsboro, North Carolina 287'x5 Phone: [phone] Fax; [phone]

SEP-2-2006 11:09A FROM:DTLLSBORO
BQARDMEM8ER5:
JOHN FAULK
JIM DUKES
JIM CASE
BIASAIfIFH
828 631 9539 T0: 3697616
~.~ p r ~1LLS~O
tip ~0
"Heart of Great Smokies VacatioNand"
Mr. John Domey
- NC Division of Water Quality
2321 Crabtree Blvd.
Raleigh, NC 27604
Dear Mr. Domey;
EXHIBIT B
P.2~2
JEAN HARTBARGE
MAYC
Mfl~ FITZGERAL
VICEMAYO
HERBERT NOtJ'
TOWN CLEF
l must ask far a retraction of the request letter dated August 25, 2006 regarding Duke
Power's re-submitted application for Water Quality Certification for the Duke relicensing
of their projects.
Further consideration of the opportunities gives for citizen input on these various projects
appears to have been ample during previous public hearings, one as late as .tune of this
year in Jackson County conducted by FERC.
Sincerely,
~~
Jean Hartbarger,
Mayor
P.O. Box 1088 Dillsbaro, North Carolina 2872b Phone: [phone] Fax: (828} 631-4539

EXHIBIT C
OFFICE OF
COMMISSIONERS OF JACKSON COUNTY
BOARD OF COMMISSIQNIrIi,S
BRIAN THOMAS McMAHAN, Chairman
ROBERTA CRAWFORD, Vice Chairman
JOE COWAN, Commissioner
EDDIE MADDEN, Commissioner
CONRAD HUBBELL, Commissioner
KENNETH L WESTMORELAND, County Maosga
401 GRINDST~F[• COVE ROAD
SYLVA, NORTH CAROLINA 28779
[phone]
FAX (828} 631-2208
E-Mail- JacksanCoMgr@jack onnc.org
August 25, 2006
Mr. John Domey
NC Division of Water Quality
2321 Crabtree Blvd.
Raleigh, NC 27604
Re: Application for 401 Water Quality Certification-Duke Power
Relicensing (Project No. 2602-0OS Dillsboxa Dam Relicensing;
Project No. 2686-032 West Fork Tuclcasegee; Pzvject No.
2698-033 East Fork Tuckasegee; Project No. 2603-412 Franklin;
Project No. 2601-007; Bryson; Project No. 2692-032 Nantahala;
Project No. 2619-012 Mission)
Dear Mr. Dormey:
We understand that Duke Energy has withdrawn and re-submitted an application for 401
Water Quality Certification for the above referenced projects, We feel that this is a controversial
action that affects all the citizens of Jackson County. There£ore, prior to your agency taking any
action on this request, we suggest that a public meeting be held to allow the people of tbo(s county
to express their views about these projects.
As you kmow, Duke Energy does not plan to carry out any meaningful mitigation
measures in exchange for the decommissionizxg o£the Dillsbora Dam in Jackson County. We
feel that this is not in the best interest of the citizens of tbds cquBty and therefore, request that no
action be taken on this 401 Certification until such time as public meeting can be held in Sylva.
S' cereiy, A/
'vG e~
Brian Thomas Mclvlahatl, Chairman

EXHIBIT D
Board of Commissioners
Glenn Jonea, Chair
Genevieve Lindsay, Vice-Chair
7aviq Monteith, Member
Cavid Anthony, Member
Jeff Watdroup, Member
Swain. Cau~`ty
101 M>`tthefC 5tireet
P.O. Box 2321
Bryson. C9.ty, NC 28713
County Manager
Kevin S. King
Telephone: [phone]
[phone]
Fax: [phone]
managerC~?swaincounty,org
August 30; 2006
Mr. John Dorney
NC Division of Watex Quality
2321 Crabtree Boulevard
Raleigh, NC 27604
Re: Application for 401 'Water Quality Certification-Duke Power Reiicensing (Project
No. 2602-005 Dillsboro Dam Relicensing; Project No. 2686-032 West Fork Tuckasegee;
1?rnject No. 2698-033 East Fork Tuckasegee; Project No. 2603-012 Franklin; Project No.
2601-007; Bryson; Project No. 2692-032 Nazxtahala; Project No. 2619-012 Mission)
Dear Mr. Dorney:
We understaxxd that Duke Energy has withdzawra axxd re-submitted an application fox 40]
Water Quality Certification for the above referenced projects. WE feel that this is a
controversial action that affects all the citizens of Swain County. Therefore, prior to your
agency taking any action of this request, a public meeting should be held to allow the
people of tkilis County to express their views about these projects.
As you know, Duke Energy does not plan to carry out any meaningful mitigation
measures in exchange for the operation of the Brysan Hydro Project in Swain County.
WE feel that this is not in the best interest of the citizens of this Cowaty and thezefore;
inquest that no action be talceia on tbxs 401 Cexkification until such time as a public
meeting can be held in Bryson City, North Carolina-
Sincerely,
Glean Jv , Ck~aiz7i>aa~n
Swain County Commissioners

EXHIBIT E
Board of Commissioners
Glenn Jones, Chair
Genevieve Lindsay, Vice-Chair
David Monteith, Member
David Anthony, Member
Jeff Waldroup, Member
Swain Count
101 MitcFic.![ Street
P.O. Box 2321
Bryson City, NC 28 713
County Manager
Kevin S. King
Telephone: [phone]
(828) 48$-2600
Fax: [phone]
[e-mail]
September 13, 2006
Mr. John Dorsey
NC Division of Water Quality
2321 Crabtree Boulevard
Raleigh, NC 27604
RE: Clarification of my letter of August 30, 2006 regarding
401 Water Quality.Certifications for Duke Power Hydro Relicensing Projects
Dear Mr. Dorsey:
I am writing to clarify the purpose of my earlier letter and the position of Swain County
regarding Duke's relicensing efforts.
We support a public meeting because we believe in the importance of public input at all
levels.
However, this board is not taking a position on relicensing issues; earlier we decided not
to be an intervener after listening to speakers from various views, including our tourism
industry which stressed the importance of removing Dillsboro Dam. Our county Soil and
Water Conservation District and Economic Development Commission represented the
county in the relicensing stakeholder meetings and signed the settlement agreements with
many parties including Duke.
We have no position on mitigation related~to Bryson Hydroelectric Project. We
understand that Duke submitted 401 Water Quality Certification applications in 2003.
Duke then withdrew and resubmitted the applications in 2004, 2005 and 2006 to avoid a
waiver by default of the State's 401 authority due to a one-year regulatory timer.
Sincerely,
Glenn Jo ' ,Chairman
Swain County Commissioners
ii,
F;