The primary purpose of Utica Water and Power Authority (Utica) is to operate and maintain a 27-mile-long water supply system that provides the sole public water supply to 10,000 people in the Murphys, Douglas Flat, Vallecito, and Angels Camp communities, and provides irrigation water to more than 1,000 acres of agricultural land in Calaveras County¸ California. To help offset the maintenance cost of the water supply system, Utica operates two small hydroelectric powerhouses, each operating under a Federal Energy Regulatory Commission (FERC) license, P-2019 Utica Project, and P-2699 Angels Project.

Both of Utica’s federal licenses include the powerhouses and associated water conveyance facilities. They are both 30-year term licenses that will expire in 2033. The purpose of FERC licenses is to ensure the licensee (Utica) is safely operating its facilities and that the power and water conveyance facilities conform with the environmental and other needs of the public waterways. The existing federal licenses provide a solid framework for Utica and others to manage water flows and meet community needs. Prior to 2033, Utica would need to apply for new FERC licenses for its two projects. The upcoming relicensing process would take at least five years and could cost the Utica and the communities Utica serves up to $10 million to complete. For context, Utica’s annual budget is around $3 million.

However, there is an alternative type of federal authorization that could be issued known as a FERC Conduit Exemption. Pursuing an exemption requires an application process similar to relicensing. If FERC approves exemptions for the Utica and Angels projects, it would lead to permanent FERC authorization to operate the powerhouses, with all of the water conveyance system continuing to operate as it does now, but under local authorization and control.