The release of flows into two previously bypassed reaches of the Little Tennessee and Cheoah Rivers and the protection of nearly 10,000 acres of land within the Little Tennessee River watershed, home to 21 rare, threatened or endangered species.
The Tapoco Project is a four-development hydroelectric project located in the Little Tennessee watershed on the Cheoah and Little Tennessee Rivers in North Carolina and Tennessee. The Little Tennessee is approximately 135 miles long. The river rises into the mountains of northeastern Georgia and flows northwest through North Carolina and Tennessee. The Cheoah River, a major tributary of the Little Tennessee, joins the river at approximately river mile 51.
The Little Tennessee River drains an area of approximately 2,700 square miles. The Little Tennessee River watershed is situated within the Southern Appalachian Mountains, one of the most ecologically significant regions of North America. Lands within this watershed are primarily undeveloped mountain forests including portions of the Great Smoky Mountains National Park, the Citico and Joyce Kilmer Wilderness Areas, and large portions of the Nantahala and Cherokee National Forests.
The four-development, 350 megawatts (MW) Tapoco Project is owned and operated by Alcoa Power Generating Inc., Tapoco Division (APGI) (see Table 1). The Project was constructed to provide low-cost power to support the power needs of Alcoa's Tennessee Operations aluminum smelter, located near Knoxville, Tennessee.
| Table 1: Summary of Tapoco Project Developments |
| Development Name |
Date Constructed |
Location of Development (River) |
Approximate River Mile |
Number of Generating Units |
Generating Capacity (MW) |
| Santeetlah |
1928 |
Cheoah |
9 |
2 |
40 |
| Cheoah |
1919 |
Little Tennessee |
52 |
5 |
118 |
| Calderwood |
1930 |
Little Tennessee |
43 |
3 |
141 |
| Chilhowee |
1957 |
Little Tennessee |
34 |
3 |
51 |
The flow releases in the Cheoah River bypassed reach and the Calderwood Bypass on the Little Tennessee River are anticipated to significantly enhance habitat for fish and aquatic life, including several rare species. The Tapoco Project RSA represents an achievement that is unparalleled in its accomplishment of comprehensively protecting and preserving resources within a given watershed.
APGI's original federal license to operate the Tapoco Project was issued by the Federal Energy Regulatory Commission (FERC) on March 17,1955, with an expiration date of Feb. 28, 2005. At the conclusion of a seven-year relicensing process, APGI and the relicensing stakeholders reached a comprehensive Relicensing Settlement Agreement (RSA) that was signed by a supermajority of the stakeholders and filed with FERC on May 7, 2004. The RSA not only outlines protection, mitigation, and enhancement (PME) measures for the Project but also addresses ecological resources such as the beneficial uses of the Cheoah and Little Tennessee Rivers, including hydropower generation, watershed protection, endangered species enhancement, fish passage and recreational opportunities.
The Project was recently relicensed by FERC on Jan. 25, 2005. The new 40-year license became effective beginning March 1, 2005 and is based largely on the RSA that was approved by FERC. APGI began implementing the new license and the RSA immediately.
The two bypassed reaches of river were two of the more significant issues raised during the relicensing. Due to Tapoco Project operations, they had, over the years, experienced some diminishment in habitat quality. One reach, the nine mile Cheoah River, located below Santeetlah Dam, is believed to have once supported several species of now rare fish. It still supports a small population of the Appalachian elktoe, a rare freshwater mussel.
The second, Calderwood Bypass, located downstream of Calderwood Dam, is a one mile reach of the Little Tennessee River. To enhance habitat conditions, studies concluded that both bypassed river reaches required continual, additional flows. To complicate issues, each is located in different states; the Cheoah River in North Carolina and the Little Tennessee bypass in Tennessee.
Other issues included recreational use of the rivers and reservoirs, rare and endangered species habitat, the dams' and reservoirs' contribution to habitat fragmentation, and the need to preserve river water quality.
From the outset of the Project relicensing, which began in 1998, it was clear to APGI that issues surrounding the relicensing would be driven primarily by the location of the Project within the unique and significant ecosystem of the Little Tennessee River watershed.
The cooperative approach adopted by APGI allowed numerous stakeholders, representing a wide variety of national, regional and local interests, to actively participate in the relicensing process and ultimately to sign a comprehensive settlement agreement for the Project.
APGI granted The Nature Conservancy, at no cost, permanent conservation easements covering approximately 5,900 acres and term conservation easements on an additional 3,975 acres of Alcoa-owned land. The protected lands are largely undeveloped forest land located between the Great Smoky Mountains National Park and the Cherokee National Forest. It is home to 21 rare, threatened or endangered species. The Nature Conservancy has the option to buy this land from APGI, ultimately transferring it to the National Park Service, the U.S. Forest Service, or the Tennessee Wildlife Resources Agency, assuring its long-term protection.
Other key components of the RSA include preservation of APGI's ability to generate 1.4 million megawatt hours of economic power, annually, to support its aluminum smelting operations in Tennessee; fish and wildlife habitat improvements to enhance species biodiversity, including the restoration of four federally listed endangered fish species; enhanced recreational opportunities in a remote and primitive setting; and protection of cultural resources of historic importance to the Eastern Band of Cherokee Indians.
FWS indicated that they would consider the project a success if one of the nests were used within five years. In 2004, two nests successfully fledged three eaglets. In 2005, the same two nests were incubated. Although one of these failed, the other produced three fledglings. The failure of the one nest is attributed to early spring storms. Consecutive use of the two nests over the two years is indicative of a successful management project. Noteworthy Event: In 2004, one of the nesting pair was a juvenile female. After observing a blue band on the female and consultation with FWS, it was determined that this was an immature female from New York State - the first known occurrence in Massachusetts!
The focus of the stakeholders would be to restore and preserve key ecological components of the watershed. After more than a year of negotiating, APGI and the relicensing stakeholders reached a comprehensive settlement agreement for the Project. Key provisions of the RSA were the establishment of continuous flows in the Cheoah River and Calderwood Bypass reaches, and the protection of 10,000 acres of undeveloped forest land within the watershed.
APGI is preparing to implement other provisions of the RSA including recreation, RTE species management, and fish passage and monitoring. Outside of FERC's jurisdiction, the land conservation measures committed to in the RSA are also being realized, as APGI, The Nature Conservancy, and the agencies have been working diligently to complete all the real estate transactions necessary to fulfill the RSA's land protection commitments.
Though the Tapoco Project Relicensing Settlement Agreement is not the first such agreement used to help resolve issues surrounding the continued operation of a hydroelectric Project, it is unique. When all was said and done, all parties to the agreement walked away winners: APGI was able to maintain the economic value of its hydroelectric Project thereby helping to support the continued viability of its Tennessee smelting operations and the resource agencies and NGOs were able to significantly enhance environmental resources in the Project area. But clearly, the biggest winner, was the remote and beautiful Little Tennessee River watershed.
"Alcoa has proven to be a textbook example of how a major American company can work with a large group of stakeholders, with varying interests, to strike an appropriate balance between hydro generation, which supports jobs and related economic activity that are vital to the people of East Tennessee, and environmental conservation."-Senator Lamar Alexander (TN).
"The land surrounding Alcoa Power Generating, Inc's. Tapoco hydropower facility has been on the conservation community's radar screen for decades. It serves as a critical link between the Great Smoky Mountains National Park and the Cherokee National Forest and is home to a myriad of plants, animals, and wilderness ecosystems that are becoming increasingly rare in the Southern Appalachians mountain range. APGI's willingness to enter purchase agreements and donate conservation easements on this land is a testament to the company's broad vision - a vision that marries economic prosperity, power generation, and responsible stewardship of our natural resources."-Scott Davis, State Director, The Nature Conservancy - Tennessee Chapter.
