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This is in response to your letter of September 27,
1979, concerning our recent review of the Libby Reregulating
Dam Project. Your letter requested that our work address:
--The benefit-cost analysis used to justify the
Libby Reregulating dam.
--The effect reduced river fluctuations would have
on power generation.
--The sustained peaking adjustment used for the first
time in the West Group utilities' forecast for
1979-99.
The first two of the three matters were covered in our
report of November 20, 1979. 1/ With respect to the benefit-
cost analysis, we reported that the Corps of Engineers had
overstated the project's benefits by using out- ted and
inappropriate calculation methods. Orhe Corps 0
conduct a new benefit-cost study using more a~ propriate
methodology and more precise data.
Regardi g the effects of river fluctuations, our report
showed that ?educed fluctuation limits could impair operating
flexibility of the main dam and decrease power benefits at
the reregulating damXn We found no evidence of significant
benefits to fisheries or other purposes which would justify
reduced fluctuation limits.
l/Montana's Libby Dam Project: More Study Needed Before
Adding Generators and a Reregulating Dam, EMD-80-25,
Nov. 20, 1979.
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