When FERC investigates your unlicensed project

A FERC investigation into a hydropower project's jurisdictional status poses the potential for substantial risks and costs. This paper outlines a five-point protection plan for owners and operators of unlicensed projects potentially subject to FERC jurisdiction. The plan includes the following elements: understand the investigation process; do your homework; respond promptly to FERC deadlines; weigh the costs and benefits of licensing; and be careful not to do something inadvertently to make your project jurisdictional. Based on the plan outlined above, a project owner or operator should be better able to develop a strategy which minimizes risks while maximizing the ability to prevail on the jurisdictional issue. At the very least, such a plan should put the project owner or operator in a better position to achieve a resolution which is acceptable both to the owner or operator and to FERC