Title:
Storage Reallocation Issues in Federal Multipurpose Reservoirs

dc.contributor.author Farmer, Michael C. en_US
dc.contributor.author McMahon, George F. en_US
dc.contributor.corporatename Georgia Institute of Technology. School of Public Policy en_US
dc.contributor.corporatename Camp, Dresser & McKee en_US
dc.contributor.editor Hatcher, Kathryn J. en_US
dc.date.accessioned 2013-06-07T19:52:44Z
dc.date.available 2013-06-07T19:52:44Z
dc.date.issued 1999-03
dc.description Proceedings of the 1999 Georgia Water Resources Conference, March 30 and 31, Athens, Georgia. en_US
dc.description.abstract The U.S. Army Corps of Engineers (Corps) operates Lakes Lanier and Allatoona, two large multipurpose reservoirs in the metropolitan Atlanta area. Releases from these dams regulate the greatest share of draws to meet municipal and industrial uses in the region. These dams also produce hydroelectric power, provide flood control, and elevate lake levels to enable recreational use by visitors from within and outside the region, as well as by nearby residents. The Lanier and Allatoona reservoirs were originally designed primarily for power and flood control, albeit with significant attention leveled to municipal and instream flow water uses. Because these dams were developed to provide maximum National Economic Development (NED) benefits, there have historically been no charges assessed to any other use except hydropower. With the advent of costsharing in the 1980s, new additional uses of storage that reduced hydropower benefits were expected to reimburse the federal treasury for benefits foregone, either directly or by purchasing the equivalent amount of storage reallocated from hydropower_ to the new uses. The separable and jointuse costs of storage allocated to hydropower have historically been recaptured through charges to the power customers. Joint-use costs are average costs of facilities serving multiple uses, assessed in proportion to the benefits remaining after separable costs. The concern of this paper is twofold: First, the costsharing rules that allocate expenses in the initial formulation of a project often fail to remain equitable once demands for water and storage change. Second, where demands have changed, reallocating storage behind the dam along lines traditionally followed by the Corps may fail to capture the true costs and benefits of resources currently allocated to marginal uses in comparison to storage that, if reallocated, might better serve the new uses. One such example may be storage currently allocated to hydropower-of diminishing utility in a deregulated market with abundant and 51 inexpensive thermal substitutes-which might be far more valuable when reallocated to uses for which no good substitutes are available, such as municipal water supply. This paper explores institutional impediments to storage reallocation in multipurpose federal reservoirs to achieve their highest and best uses. In initial dam design, the Corps details a list of the benefits of multiple-use coordination. The size of the project is allowed to expand as long as adding another use continues to make it cheaper for evecyone involved to participate. Known as 'subadditive costs' or 'returns to scale,' project size is determined so that it would be more expensive for any individual use to go-it-alone to meet its . needs than for all to collectively participate in a multipleuse project. This principle guides the Corps in establishing project size as well as recovering the costs of construction, operation, and maintenance. The Corps' objective in establishing 'fair' charges for access to these services is to assure that evecy use benefits from participation above any independent, go-it-alone strategy. The fairness objective is relatively easy to assure if the size of the project is chosen such that it initially conforms to a cost-efficient scale. In time, however, uses of storage may shift from those originally contemplated, in which case competitive pressures are exerted to convert storage historically used to supply original demands that have become less valuable to new demands that are becoming more valuable. It is just this sort evolution of demands that has launched the current Georgia, Alabama and Florida water conflict - ostensibly over the reallocation of storage in federal reservoirs in the Apalachicola-ChattahoocheeFlint (ACF) and Alabama-Coosa-Tallapoosa (ACT) River Basins. The use and potential reallocation of storage in Lakes Lanier and Allatoona lies at the heart of this conflict. en_US
dc.description.sponsorship Sponsored and Organized by: U.S. Geological Survey, Georgia Department of Natural Resources, The University of Georgia, Georgia State University, Georgia Institute of Technology en_US
dc.description.statementofresponsibility This book was published by the Institute of Ecology, The University of Georgia, Athens, Georgia 30602-2202 with partial funding provided by the U.S. Department of Interior, geological Survey, through the Georgia Water Research Insttitute as authorized by the Water Research Institutes Authorization Act of 1990 (P.L. 101-397). The views and statements advanced in this publication are solely those of the authors and do not represent official views or policies of the University of Georgia or the U.S. Geological Survey or the conference sponsors. en_US
dc.identifier.isbn 0-935835-06-7
dc.identifier.uri http://hdl.handle.net/1853/47304
dc.language.iso en_US en_US
dc.publisher Georgia Institute of Technology en_US
dc.publisher.original Institute of Ecology en_US
dc.relation.ispartofseries GWRI1999. Water Supply Management en_US
dc.subject Water resources management en_US
dc.subject Hydropower en_US
dc.subject Multipurpose federal reservoirs en_US
dc.subject National economic development en_US
dc.subject Public policy en_US
dc.subject Separable and joint use en_US
dc.title Storage Reallocation Issues in Federal Multipurpose Reservoirs en_US
dc.type Text
dc.type.genre Proceedings
dspace.entity.type Publication
local.contributor.corporatename Georgia Water Resources Institute
local.contributor.corporatename School of Civil and Environmental Engineering
local.contributor.corporatename College of Engineering
local.relation.ispartofseries Georgia Water Resources Conference
relation.isOrgUnitOfPublication 8873b408-9aff-48cc-ae3c-a3d1daf89a98
relation.isOrgUnitOfPublication 88639fad-d3ae-4867-9e7a-7c9e6d2ecc7c
relation.isOrgUnitOfPublication 7c022d60-21d5-497c-b552-95e489a06569
relation.isSeriesOfPublication e0bfffc9-c85a-4095-b626-c25ee130a2f3
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