Tribe's license challenged

POLSON – A Montana state senator filed papers Friday intended to stall or halt the federal license allowing the Confederated Salish and Kootenai Tribes to operate Kerr Dam.

Verdell Jackson (R-Kalispell), believes the Federal Energy Regulatory Commission and utility supplier NorthWestern Energy do not have the “proper authority to convey the Kerr Project to a tribal government,” because it would violate existing contracts and reduce tax funding to schools and Lake County.

In his paperwork filed with the commission, Jackson also claims that the, “tribes cannot yet meet the specified conditions of the existing license,” and that some affected parties were not properly notified of the sale.

CSKT spokesman Rob McDonald verified that the Polson School District and Lake County would each lose about $400,000 annually in taxes raised by the dam.

“But the tribe has agreed to make payment in lieu of those taxes,” McDonald said.

He said the transition is in its 38th year of a 40-year plan for the transfer of ownership to the tribe, he said.

The CSKT would be the first tribe in the country to own and operate a dam, which the Tribal Council will rename, McDonald said.

Some non-tribal ratepayers fear the tribes might raise rates but McDonald said the commission will still regulate the cost just as it always has.

“People won’t see a difference,” he said.

The plan in place calls for the tribes to assume control in September 2015, McDonald said.

Jackson, an irrigator, is also against implementation of the proposed Water Compact and Agreement. [See his letter on the Opinion page.] And Jackson is staunchly against what he considers giving up water rights to the tribes or anyone else.

Verdell wants the commission not to issue a license to the Tribe until after the sale is complete, and then to issue the license, “as to minimize the disruption to and destruction of the local and regional economies.”

After extensive hearings and a negotiation decided through arbitration in March, CSKT-owned Energy Keepers will pay $18.2 million to purchase the Kerr Dam.

The tribes offered $14.7 million while dam-owner PPL Montana was asking $50 million.

Verdell claims the dam is worth more than $200 million.

Despite protests from tribal members who believed the river should not be harnessed in such a way, the dam was constructed in 1938.

Tribal Council has said the only difference to ratepayers is more economic benefits will stay in the valley instead of going to Pennsylvania, where PPL Montana is headquartered.

The tribes already operate area electricity-provider Mission Valley Power.