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Honorable Clarence Cannon

Chairman, Committee on Appropriations
House of Representatives

20 March 1961

Dear Mr. Chairman:

In response to your request, herein are estimates of the funds that would be required by the Corps of Engineers to study the possibility of installing pumped storage power generating facilities at and adjacent to Corps of Engineers reservoir projects.

From the examinations we have already made, ± is evident that there are many possibilities for pumped storage developments in conjunction with the 250 or more reservoir projects of the Corps of Engineers which have been or are being constructed. The cost of a study of these possibilities will depend on the extent of coverage and on the degree of detail desired.

We have considered, as a practical approach, that the initial phase of such a study would be of a reconnaissance nature to identify possible pumped storage sites and determine the general magnitude of the potential. This would then be supplemented by preliminary examinations of a few of the more promising sites in each marketing area to determine whether the possibilities are sufficiently attractive to merit detailed investigation at this time. It is estimated that such a study on a nationwide basis covering all Corps of Engineers reservoir projects, whether they now include power features or not, could be performed at a cost of approximately $450,000 and would require about eighteen months to complete.

It is believed however, that the Appropriations Committee may be primarily interested, initially, in the pumped storage possibilities at existing Federal projects that could be developed to supplement the power now being marketed by the Federal Government. If this should be defined as the objective of the study, the scope could be considerably curtailed. In New England and in those states north of Kentucky and lying between the Appalachian Mountains and the Missouri River Basin there is at present no Federal power produced, hence none to supplement. In the Pacific Northwest and in the Missouri River Basin the basic power need at this time is primarily for base load capacity rather than peaking capacity of the type for which most pumped storage plants are designed. The investigations in those areas could be considerably reduced if confined

to only those developments which might make a significant contribution in the near future. Even in other areas, investigations could be curtailed somewhat by the elimination of possibilities such as those for which there are ample and obviously better alternatives, or which are too remote at present for economical interconnection with the Federal Power system they would supplement. It would appear that such a curtailed study, which would involve less than half of the 250 Corps of Engineer reservoir projects existing or under construction, could be made for about $225,000, and could be completed in about a year if the studies were expedited.

The limited study outlined above would serve to identify the better pumped storage possibilities at Corps of Engineers' projects. It would also provide a basis for the selection of projects for detailed study in survey reports with a view towards meeting loads projected for the near future. The more extensive study would also accomplish these purposes and, in addition, provide a valuable overall inventory of projects for long-range consideration.

The authorisation and construction of any one of the possible developments revealed by the foregoing studies would normally be preceded by a detailed survey investigation and report to the Congress. For a typical case it is estimated that a survey and report for an individual pumped storage plant would require about $35,000 in funds and could be completed in about 18 months.

We have been aware for some time of the increasing significance of the pumped storage power plant as an element in planning for the optimum development of our water resources, and a number of such possibilities have already been investigated. Our current instructions provide that full consideration will be given to pumped storage aspects in future survey reports, and also in the design of projects that have been authorized but not yet placed under construction. The studies outlined in the foregoing paragraphs have been predicated on the investigation of only those reservoir projects which are presently existing or under construction. If desired, however, the studies could be readily expanded to include consideration of other projects now in pre-construction planning stages.

Sincerely yours,

WILLIAM F. CASSIDY

Major General, UBA

Director of Civil Works

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1. Purpose and Scope. The purpose of this manual is to direct the attention of Division and District Engineers to the increasing significance of the pumped storage type of hydroelectric development as it relates to civil works projects of the Corps of Engineers, and to provide interim guidance in planning for such developments. It is applicable to all divisions and districts engaged in civil works activities. The policies and procedures prescribed herein will be supplemented by revisions of other existing EM's at a future date.

2. There are many pumped storage hydroelectric projects already in operation in Europe, but only a few plants of this type have been constructed in the United States. There is at this time, however, a widespread and growing interest in pumped storage possibilities in this country, which has been stimulated in part by the recent development of relatively high efficiency reversible pump-generating units. A tabulation of plants which have been built or are under construction in North America was contained in an article which appeared in the 5 December 1960 issue of the Electrical World magazine.

3. There are many variations in types of pumped storage developments. However, there are two general types which lend themselves to the kind of projects constructed by the Corps of Engineers. One involves a detached pump-generating plant which would pump from a reservoir as an afterbay to an auxiliary impoundment at a higher elevation. This type is referred to hereafter as an adjoining development. The reservoir involved might be part of a multiple purpose project, or a single purpose reservoir for flood control or other purpose. In normal operation, adjoining pumped storage plants with which the Corps would be concerned would pump water from a lower reservoir to an upper pond during off-peak periods of power load, using energy from an external source for pumping. The other type, referred to hereafter as an integral development, would be where pump or pump-generati units are installed at the dam, usually in a powerhouse with conventional hydroelectric generating units. The pump-back operation would be into the reservoir from an afterbay or impoundment below the dam.

4. Pumped storage aspects of Corps of Engineers projects will be evaluated as a part of planning for the optimum development of water resource Such consideration is necessary to assure the proper formulation of the Federal project, and also to provide a basis for the analysis of pumped storage proposals made by non-Federal interests. The extent of these investigations to be carried out in the pre-authorization and post-authorization stages is as follows:

8.

Possibilities for pumped storage developments of both the adjoining and integral types will be investigated in future survey reports. Where potentialities exist, the engineering and economic aspects will be reported.

b. Pumped storage possibilities will also be considered in the design stage of authorized projects. The inclusion of an adjoining plant at such projects would usually be beyond the authority for modifications available to the Chief of Engineers and would therefore require a report and recommendation for authorization by Congress. However, a change in design to provide an integral plant in lieu of the conventional plant upon which authorization was based would be a reasonable use of the Chief of Engineers' authority for project modification in most cases.

C. There may also be opportunities for the installation of pumped storage plants at existing reservoir projects. While studies of these possibilities may be called for in the future, it is not intended that a program for such action be initiated at this time. It is requested, however, that Division Engineers inform the Chief of Engineers of any proposals or possibilities involving pumped storage at existing Corps of Engineers projects which may come to their attention.

5. The Congress has not as yet expressed a policy in regard to the Federal Government's participation in the construction of pumped storage plants. The House Appropriations Committee, however, has requested information regarding the scope and approximate cost of a study of the possibility of supplementing power production at existing federal projects by pumped storage.

6. It is anticipated that there will be a variety of circumstances under which pumped storage plants will be found to fit into comprehensive plans of development. Although certain of these plants may require special consideration, the general manner in which pumped storage possibilities will be handled in the formulation of Federal projects is discussed in the following:

a. The integral type will usually be operated in connection with conventional units and require close coordination with overall project operations.

b. In the case of adjoining plants the relationship to other project purposes will vary. Many will require the use of only a very small part of the storage available and have a relatively insignificant effect on project operations for other purposes. In some, however, it is expected that the pumping operation might also serve purposes other than power, or

that the storage fluctuations attendant to the pump-generation cycle might have to be closely coordinated with operations for other purposes, including recreation and fish and wildlife.

C. Integral facilities will be recommended in survey reports for inclusion as a part of a Federal project when such facilities are justified and represent the best development of the site. Adjoining plants which are similarly qualified, and the operations of which have a significant interrelation to other project operations, will also be recommended for Federal construction.

d. The reports will also take note of other possible adjoining pumped storage plants which might be developed at Federal projects but which do not appear to require operation as an integral part of the project. e. Non-Federal interests may wish to consider the construction of adjoining plants at Federal projects, that could be operated relatively independently of Federal operations. These interests should be advised that such action will require application to the Federal Power Commission for license under the provisions of the Federal Power Act. Consideration of the feasibility of such proposals from the standpoint of effect on and compatibility with Federal project operations will normally be given incident to processing of license applications. Non-Federal interests may, however, be given available information concerning such possibilities to facilitate their consideration of action towards securing licenses.

7. Pumped storage developments selected for detailed investigation will be analyzed by the usual procedures prescribed for the planning of Corps of Engineers' projects. The separable cost of pumped storage facilities will be compared with the incremental benefits associated with those facilities to determine economic justification. To the extent that they are not interdependent, both pumped storage and conventional facilities of a project will be analyzed and justified separately. Studies will be fully coordinated with both the Federal Power Commission and the power marketing agency in a manner consistent with procedures followed with respect to conventional power installations. Unit power values of capacity and energy, and estimates of the unit cost of energy needed for pumping used in computing the economics of a pumped storage facility will be obtained from the Federal Power Commission. In analyzing integral developments, the feasibility of providing afterbay storage adaptable to the pumping and generating cycle will be a major consideration. As a related matter, attention is directed to EM 1165-2-106, 18 April 1960, "Control of Releases from Power Plants", regarding the desirability of providing an afterbay for low flow regulation.

8. The following generalizations could be used in reconnaissance or preliminary evaluations of possibilities for the adjoining type of pumped storage facility:

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