20041225 Ver 1_COMPLETE FILE_20040702

Duke
Energy,,
IuF!C "t), ?C!( A
Nir Mn. Dorney
North Carolina Dwi,ion ol'\%ater (juality (N('DWQ)
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WETLANDS/ 401 GROUP
JUL 0 2 2004
232 1 Mbnvc M d WATER QUALITY SECTION
161' di, N(` ? 7604
kc:: y\ Hhdra%?al and', Re-subtnirtal of z?pphcation for 401 Water Quality ccrtification
Franklin 11)Wroclectric Proicet, hFR(' No. )003
D"T 1 104H M)
Macon Coumv, North ('arohna
1i._ur Mr_ Donnev
On .Ittiv 8.. NO We Po"cr, a L)iON" of Duke l?nergy Corporation, Nantahala krea
(NINA) filer] a 401 `v\ atcr Quality ('mlificrtlm (401 WQ(.') application with the North
C'rir?ilttta Di ,Sinn of kvatcrr (XmhtF (N( MVQ) for the Franklin Project. SuhsequeJt k oii
tint?? stia}7ca '(413, Duke requested that NC DNVQ place a hold on processing, the 401
Mi(._:Wpliuatkon for the Imnichn Project until DI)N y Ide-cl a license surrender
appli ,;lien v?ith the Man! Energ, Regulatory (.-ouunission (FFR(') for the Dillshoro
H ydrowlectric Proj?-ct No. 20()2. 1 he license surret cler application for the Dillsboro
Prom°ct "ys filed wHh hFRC on Ma\ 28. ?(M
Smcc the one-year tinw4 me that FEW allows status to process 401 WQC aprdicadons
expucs on Juh; 7 2004 Or the Franklin Project. DPNIN hereby withdraws the previous
4W \VQ(' application that was filed with NC'DWQ on .Icily 8, 2003 and is simultane.ousl.v
suhnuUmp a nm 01 VV0 (" apphcatiari to N('L) `Q for the Franklin Project, Fncloscd
for h ling are an oripnM and six copies of a cmuph:wd application for 401 Waler Qualily
('ern fication l-or the Runklin Prolm atom, with the application the of $475.

Even though the license surrender application for the Dillsboro Project has been filed
with FTRC. DPNA is requesting that the. NCDWQ place the processing of the Franklin
Project -ltll "IQC application submitted "Ah this cover letter on hold again until the final
AsyOtion of the Dillshow Proicct is resolved with NCDWQ and FERC,
It these arc a?i? questions, hi(,,asc call nw at 701-382-5942 or F.d Bruce at 704-384-5239
SW01 7
Tctlre? i. Lineberger, 1) 1--
Manager, IIydro Licensing
IAW Pater

cc " mchism kh, K,°v in Barnett, Asheville Regional Office
A- M e Rend, NU Dig ision of GL ur Resource`
Ma,,,,,alic R. Salas. Secretary I FRC
John `Vishotn. C)PtiA

DWQ 11):.03-0118(-l
FERC 401 WATER QUALITN' CERTIFICATION
APPLICATION
FOR E A1S I IN(T FERC E'ER NIITS
SEND SEVEN (7) COPIES AND THE
,APPROPRIATE FEE (SEE ITE"!1 # 16)" OF ,THIS :aPPLI('A'r10N TO:
T'11E; N ' DIN`ISIONI OF NVATER QU.A0.111'
A"fT'N: JOHN DORNE.Y"
2321 C'R.SB'T'REE BLVD., SUITE: 23()
RALEIC IL N('27604.
(PLEASE'PRINT OR TYPE.)
()%VNE:R's NAM1,
Duke Poeeer
MrMI.INO ADDRESS-1
526 Church Street. P.O. Box 1006
PR0J'4.'T N,AMI
i ranklin_Hydroelectric _ Project, f`EIZC No. 2603
(:'I I Y: Charlotte S f.AJ E : :Borth Carolina /.1P CODE- 282011-1006
F'f?O.II_C C LOCAL ON ADDRESS O DIFI FRF_.N"C'FR(_ NA MAILING
ADDRESS A130VI-")l
56+ _C_j de _Downs _Road, --Franklin, _NC 28734
I FL,ETI iC)vC Nl ` RF:R: (NVORK) (7Q41) 382-5942
4. IF APPi_.ICAliI_E:: ACiFN F'S NAM[; OR RE:SPONSIBLF. C ORPOR,ATF
01TICIAL, ADDRESS, PHONE NUMBER:
Mr._.Jeffrex_C;. Lineberger Mana }erflvdro Licensing, _puke_POwer
526 Church :street, P.O _Box 1006, Charlotte. NC_28201 11)06
I_.0CAfION PRO.IEC Y (PROVIDE A MAP. INCLA-DING A COPY OF I_ISC S
TOPOGRAPI II(' MAP OR AERIAL. PHOTOGRAPHY WITI I SC.ALF):
Velsin?r 1.0
Jaimary, 1909
COUNTY: Macon NEARFST TOWN: Franklin
SI'F.C'IFK'I.OCA"I' ON (IN('LUDF ROAD NUMBERS, LANDMARKS. F1C.)
64 CIN-de_Downs._Road See attached ma_p
0. I?IPACiE D 51Rh?AM%"RIVFEt: Little Tennessee River
RIVF'R BASIN: Little Tennessee River Basin
C URREM DIVISION OF WAI`ER QUALITY (D\VQ) (LASSIFICATION:
Upstieann_of Dam: Class C_,_Downstream of Dam Class t
(a) 1S UIF PROJ[?:1 LOCATED WI?F'IIIN :? NORM CAROLINA DIVISION
()I ('0)\SIAI: %-IANA(.Tf:\,1E.N1' AREA OF E NVIRONMFNTAI. CONCERN
(r1 F: (" i'? 1' 1': S No
(h) IF IHL PROJECI IS LOCATED'WITHIN A COASTAL COU'M'Y (SEE
PAGE 7 FOR IJSJ' OF ('OASTAI. COUNTIES), W IAT IS 'IIIE LAND USF
I'L_=LN i1,11-)) DF.SIONMI-ION`?
?. (it) ARF: ADDI J ZONAL PERMIT RFQI_IFS IS EXPEC T.D FOR -11-11S
PROP1'RTY IN "1111: FU'I 1 R F? YES NO I?j IF YES. DFSCRIBI
AN. 11 `IPAt-1-DW()RK:
?l. (a) E.SL 111A1'E[)'I()'I',1I_. N('MBEIZS OE,'ACRFS IN PROJE_C`T:
Approximately1.82 acres in the_F_roiect
1(). PROVIDF: AN ,APPROPR.IA I T FNVIRONMF:NYAL DC}( UN-IFNL HIF.
1Y_)C UMENF SHO LD ADDRESS:
(a) DA 1A StIO4ti'INCi JIM- A 7Q10 MINIMUM I'LOW WILE, BE
I'R(WIDED
{)xrc_._of..__t:hc_ Protection, _._N7it ation,_ and _..Enhancement ._Measures ._iPIME
Rropo ed., for theFranklin _ Proiect _includes theinstallation of_ _a
pro rammablc logic. controiler__fPLC')._which_ controls the Tainter_gates .and
has been. uroven to_controi pond level within 0.1 feet of full [)ond over 99.5%
of the._tinte . The PLC installation will ,immove_the_sensitivity _ of lake level
management and -vOll ensure that a. minimurn _dowmstream._release (7010_ of
104_efs_or_inflow. whatever is less .cviil_he maintained _Histotic_stream floNy
data and associatedflow duration curves for the roieet, including minimum
flow data can be found,. in. thhee_ Franklin Elvdroelectric Final License
AP-Wication submitted on_July,_22, 2U(13_ This information is found in Section
Version 1.0
J,muar'l. 1900
E2 I?_of_the_Final Avp_lication.-_Annual and monthly flow duration curves are
provided in Appendix Z„of,the Final AppLiggion.
(h) A COST BI NEF11_ ANAI,YSIS OF THE PROJFCI' SKIMMING WHY THC;
PROJECT IS ST11_I. NI=(:'I:SSARY
Please see Exhibit 11 __($j!pptqjiqntaI Information), Section H2.0 of the
Franklin _Final -License _Application for pertinent _cost _benefit information.
summary is as folloc%s:
The benefits_of_the_.Franklin_ llydroelectric _Station as a resource for both
c_apacih andenergy _ can be expr_essed in terms . of avoided costs. For the
purposes of this evaluation, avoided ._costs _areenergy andcapacitti? _costs,
which. would be incurred if this. particula..r_hvdro_station were not available..
f hest costs _canbe- estimated. _b- the_. Applicant to evalu,ate_ alternative
resources, which have a_ similar. impact _on system energy: incl. capacih_costs.
f hcAplihcant can_connect _to the main Duke _Power _system at the, I uckaseace
Substation, in Jackson Count,. DPNA can additionally purchase power from
Tennessee 'Faller Authority (TVA) through an interconnection at the i?'larble
Substation in Cherokee Countv. Under normal conditions either of these two
suQpliers is_capable_of providing the necessary, replacement energy although
at a h_iehersvstem.price.
I lie aver age .. annual -__generation _ for__ the. period _ _1941-2002 has. _ been
a.pp oximatgl 5,313 lYIWh. If the license were no.t granted the Applicant
would _incur _an additional_expen_diture. Using the average. annual generation
and the SC _IIED LL PP-H (NO 15-year rived -_rated fot asmall h0ro
project ._ witlr_ no st_orage._ as the proxy _.alternativ e, the annual cost of
replacement would be approximately $Z#!.,tkQQ.
Franklin 140roelectric _Proiect_ and _th_e_Applicant'sother -_hvdro_ facilities
pno4pce the_.lowest _cost energy available for the Applicant and its customers.
BE keeping its costs low the Applicant... can in turn keel) its electric rates low
for its._retail _ and _ ?wholesale .customers.-The, increase __in__energy__. costs to
c_ustomer,s if a license is not granted is_co )-uted_as the difference in the Cost
of replac_e,ment po?t_er_ttnd_the cost of_poyver?raduced by.the_Prg ect. For the
Franklin H vdroelectric._Station,._ this cost is S149.033 annuallv.
Duke. Power-Nantahala Area uses all of its .generation- from its. eleven 0 1)
.-su 1 its_local
hydroelectric stations. located in thetiantahala Area to
electric ._customers. _When water._is available to run these. units, thev are the
least cost option for the Applicant and its customers. DPNA has a shortage of
generation capacity_relative _to_its, current_hantahala area demand.. DPNA
must _acquire additional .power from _either _TVA._or the rest of Duke Power's
s? stern to-satisfy the-.native system demand -_in_the Nantahala Area.-Loss-of
Version 1.0
Jarrttary, 1999
the_Franklin _Hydroelectric Proiectwould therefore increase the 2eneration
shortfall .,and_increase dependence on external power supplies.
(c) DFSCRIP VION OF: LI-NGTII OF BYPASS RI~ACH OF ANY) AND
MF:ASURFS 10 PROVIDE FLOW TO THE REACH IN WNW FLOW
C(- )NDITIONS.
Due to the configuration of the _danr, there is no bypass reach -_associated _ with
this _Proiect.See. _Exhibit ACfrojgct .,Description). of the Final License
Application for a_discussion of Project facilities.., The PLC installation will
improve, the sensitivity of lake.-level. management and will ensure that a
minimum do_wnstreanr release _(7-0I.0 of_151 efs_or_inflow, whichever- is less)
,viil be maintained.
(di :.MFA5I_`RF:S PLANNED OR -FAKFN TO MAINTAIN DOWNSTREAM
\VA'I ER W-;ALII Y S1 CIi AS ADEQUA1 E DISSOLVI-a) OXYGEN,
'lie,Au ust 2001 dissolved oxygen concentrations immediately downstream
of the_Protect.-tvpicalivexceeded .saturation . concentrations (luring_ e
but droppedbelow _ saturation concentrations. at night. This _diel--pattern
it metabolism on _ the.„ oxen
strongly suggests the role of _ actuatic al
dv natnics , within Lake _ _ )i morv.__- The slip-htlyloryer_- dissolved oxvgen
concentrations. in ..September- were also influenced _ by _ac,Iuatic_ plant
metabolism within _ Lake _ Emore but resulted.., in _..sh tb'_..- iciw_er__c3xvgen
concentrations below the Projeet,,_ Based-. «pon d1- old oxygen_ data
collected in 2001 _ and__ _ the _ NCDENR-MVQ- -historical data, _ ox 11
concentrations consistently exceeded the minimum concentrations
established by State water quali(v standards for the Little Tennessee River,
A detailed_a_naly_sis of dissolved ox.ygen,,-is_provided_in Exhibit-E_ Section
E2.9.,2.1) of the Final _License_ AmAication.There vvill be no change in
l?rotectgperations,,_thus _no change ,in.the-D.O levels.
I I . WHA1 IS 1'F1E: SVI- OF I-I1F, WAJ ERSHED 3l0 s_gitare mile di'ainap-e area
WIIA'I IS THE FILL-POND SURFACE AREA'? A.pproximately_174 acres at
elevation 2000.22 ft. NlSL
12. YOU ARE REQ1.111M)'TO (''ON I"ACT THE US FISH AND WIT-DLIFE
SF:RVI( I- AND!OR NA"IIONAL,,ARINT, FISHERIES SERVICE:
REGARDING THE PRESENCE OF ANY FEDERALLY LISTED OR
PROPOSED FOR LISTING FN )ANGFRCD OR THRF:ATE?NFD SPECIE?S OR
Version 1,0
January, 1999
C"RI`VICA1 2 1IABITAF IN '111F PERMIT AREA 'T`1IA'T MAY 131.AI H"C"TED
ICY -111F PROPOSER) PROJFUl". DA-FF CON'T'ACTED:
Letter _from ,Brian _Cole _(USMS-Asheville)_on :larch f3,_2000_in_association
with Project Section _7 consultation_and_sultsequent letters discussions with
the USF« S. throtP-hout the relicensing stakeholder vrocess.
I ?. YOI, ? AR1_ RE0t-i1RED TO CON IM -11 7.ElF S"KATE MIS"IORIC
PRI_SF.R.VAflON OI'FIC"FR (SIIPO) RFGARDING 71-HF Plu-SI:N('F? OF
HIS'VORIC PROPI?R I IFS 1N 'l It[," 1'ER I!'h AREA. WHICI I MAY BE
I'D BY I IIt. PROPOSED PROJE:C"I , DA FE (ON"I C"I-[=_D:
Letter from Renee Gledhill-Earlev (NC Dem. Of Cultural. Resources) can
December _.16x_ 1999in association with cultural _ resource consultation and
sulaseyuent letters/discussions with them during the relicensinL stakeholder
process.
J D01 S I 11E PROJECT INA'C)1_.VF ANN FXPENDIT['RE OF M.BLK FUNDS
OR I i-1f= L;SI: Oi P1?F31 U (SI A I F) I_A.ND'? YI,:S NO (If NO. GU ?I C)
15)
(ti) H- YFS, DUI :S I I IF. PIdC)JE=C'T R[a?t_ IRF. PRE:PARA-I ION OF AN
LNVIRt)NNI :.'N"FAI DO(J." IENT PURSUAN i .TO 1111' RE-QUIRFMLN"IS
()I I ItF. NORI II (AROLINA E;NVIR()N4II=:Nl At POt ICY AC"I , YFS NO
(h) 11' YI S, AS FHF DOC'UNI N-T BEEN REVIEWED "t 1IRO1_lGEI `IHF
NOR I'll C AkOT iN.A. DEPAR I'MENJ OE' .ADMI'NIS1 RA HON S FA'FE.
t 1--ARIN(.i1-101 SE YES NO
IF ANS`\, FR I b IS YE:S, F'IIEN SUB( II-1 APPROPRIATt
DOC UA-IF'N'TAr'I(-)N FROM T1-1i STATE ( LEA-RINGHOUSE W'H'l T'HE:
NORTH CAROL,INr1 ENVIR(.)NMEN I'AI_ 1'01.IC'N' A("1 . 01 iE;STIONS
RF?GARDING TI-1F S_I A [ F ('1.-EARINGI-1O11SF REVIEW PR(.)('I?SS
SEIt:)I;LD BIr DIREC"TED TO MS. CHRYS B.??C?C?I:?I"T. UIREC`T(aR S`T?AI[?
CL.I-;ARINGIIOUSE. NORi"H C'AROI_INA DEPAR FMENT OF
AD%IINIS`1'RAJ ION, 110 Wf:S"F JONES S"TREE-F. RALEIGH. NOR"[ H
C APU..)LINA '%003-8(:)()3. '1'EI.I PHONIa (919)'733-0.369,
V;rsion 1.0
J anuarv. 1099
Is, LIE (JAWING ITEMS SHOLI D BE INCLUDED \\'ITH mus
APPLICAT[ON IF PROPOSED ACTIVITY INVOI:VES THE DISCHARGE OF-,
I NCAVA IE:D OF FILL MATERIAL INTO WETLANDS: N/A
(<t) WETLAND \ND DE.I.INLAL ION MAP SHOWING ALL WI-:-I LANDS, STREAMS.
I ?\KF:S, AND PONDS ON THE PROPERTY (FOR NA I'IONWIDE PERMIT
NI., VIBERS 141 S, ? 1 6. 9, AND Y ALL, STREAM (INTERMITT N L
AND 111101ANENT) UN 1 HL. PROPERTY MI.IST BE. SHOWN ON 1-1-11:
MAP_ !VIAP '-,('A IT'S SH0I41) BE 1 INCII L-Qt_IALS 50 FEETOF I INC'1L
I-OUAL.S 100 Fk F? l OF THEIR EQLlIVAL.ENT.
(h) It AVAII ARIA, REPRESENTATIV' PHOTOGRAPH (Al WETL.ANDS'TO
BE iMPAC'D BY PRC)JFC'T.
Ic) IF ) FlANFATIt_)N WAS PERFORMED BY A CONSULTANT. INC'I_ I?1)
A l 1 . L) Al A SHFFTS RELMANF F O J HE PLACEMENT 01 THE
L) AANEATION I INF.
(d) A LLACH A COPY (_* Ill !I STORM\V'ATE.R MANA(iEMLNT PI AN IF
RKA()I'IRl-D
(t) \\ EL \ 11`, IAND L SF, (A StIRR(3t;NDING PROPER FY?
?,f} IF APPLI( ABL1 , %kJJAT IS PROPOSED NiFTIJOD OF, SE\\ AGE,
DISPOSAL?
16_ Uk'R"'LIFIC'ATION 1''EE
(a) IF THE IMPAC"I IS LESS -1 HAN I ACRE OF WE'1'L..AND OR WATER AND
USS TIL AN 150 FEET OF S LREAVL PLEASE ENCLOSE A CHECK FOR
` N)0_O0 \LADE OUTTO TILE NORTH CAROLINA DIVISION OF WATER
t1t'.11.,1"1'? .
(h) IF TLIF, IMPACT FXCFFDS EFFHER OR BOTH OF THE LEVELS IN (0,
PLEASE ENCLOSE,\. C: E ECK FOR S475.00 MADE, OU F FO THE NOR Ill
CAROLINA DIVISION OF \V'AL ER QUALI FY.
E.7 PI `RLIC° NOTICE IS REQIJIR_ED FOR AL I, FERC' PRO.IFCTS. PLEASE
NO I F, IIIA"I 'T'HF. APPLICANT IS REQUIRED TO REIIABURSE THE
Version I.C.)
Lantlarv, 1991)
DIVISION OF WA LER QUAI.I rY FOR 1`E1E COSTS ASSOCFATED AVY11I
I1IF PI WiMDU O1' THE PUBLICNOVICE. RET F'RUNCF.. 15A NCAU -211
0503 (n,
SICi WD Ali!) DATED AGENT Ali 1410RIZAI ION LF ITER., IF APPLICABLE.
No] W'F I L, A N DS OR WATERS OF THE US MAY NO`F BE LMP AC'"TED PRIOR
I LSSt ANC'E: OF A SI`.("TK)N 404 CORPS OF ENGINEERS PE RWI,
L_I I I IF.R I I IF ISSL!ANCF OR WAIVER OF A 401 DIVISION OF
%NAIVR QjAI ITY CF,R'1"IFICA LION, AND
j (IN 1 HI- FWE:N"LY (UAS IAL COUNTIES ONLYt, A LETTER FROM
F] IF NORTIt CAROLINA DIVISION OF COASTAL. MANAGEti1EN IS'I ATING THE PROPOSED ACTIVITY IS CONSISTENT W"IfII THE,
NORTH C'ARC)L.INA C'OASTAI. MANA(*.iF%4FN_1 PROGRAM!
c _J
OWN-F.R'S AGE,N'I"S Si<:;NAT URE DATI__.
(AOF,\1'S SIGNAI IRE VAI ID C.)NI Y
II A ?IHORIZA"I 10 N' LF --?I FFR F:RO11
11 IF OWNFIT IS PROV110D).
VoWon 1.0
Jartum , 1999