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County to split engineering assessment for Old Valley Dam as oversight shifts
Summary
After a FERC inspection found no major noncompliance, Dunn County agreed to a 50/50 cost share with a prospective operator for an engineering assessment (~$17,000) of the Old Valley Dam powerhouse; staff said oversight may move from the highway department to land conservation and that DNR standards could apply if generation ceases.
Dunn County highway staff reported that a Federal Energy Regulatory Commission inspection of Old Valley Dam on July 30 found no major structural noncompliance, and the county agreed to split the cost of a proposed engineering assessment with a company that plans to reinstall a generator.
"They did an inspection of the dam on July 30. In their inspection, there was no major concerns with the overall dam and powerhouse," said the county engineer (speaker S2). He said the prospective operator removed the prior generator when its leasing company went bankrupt and is now pursuing a new installation; the engineering assessment was estimated at roughly $17,000 and the county agreed to a 50/50 cost share with the company.
S2 cautioned that if the dam is not generating power it would move from FERC oversight to state DNR jurisdiction, which could carry different standards and potentially higher county costs for repairs. County staff noted current revenue from the dam has been modest — roughly $7,500 to $10,000 a year — and that major repairs could require bonding or other financing.
The committee discussed shifting operational oversight of the dam from the highway department to Land and Water Conservation, with a staffer named Chase proposed to oversee the dam going forward. Committee members requested that staff track the assessment results and the implications for regulatory jurisdiction and county finances before any long-term decisions on ownership or major repairs.
No formal action to change ownership or authorize repairs was taken; the committee agreed to proceed with the assessment and asked staff to report back with the assessment findings and recommended next steps.
