Alliance Energy's federal permit to study river is terminated

OGDENSBURG — The Federal Energy Regulatory Commission has pulled Alliance Energy's preliminary permit to study the St. Lawrence River's energy-producing potential.

The federal commission, in a letter dated Friday, cited Alliance's failure to submit a second six-month progress report, which was due July 31. The company also didn't reply to a Nov. 9 letter giving them 30 days to submit the progress report.

"If the permittee fails to comply with the specified conditions, the permit will be canceled," FERC officials wrote. "The preliminary permit is hereby canceled."

Alliance's proposal had called for generating up to 110 megawatts of electricity using underwater currents in the river around Ogdensburg. The company proposed placing up to 11 arrays, with each array using 10 underwater turbines, in the river. Each turbine could generate up to 1 megawatt of electricity.

Federal regulators in August 2008 gave the company three years to explore the feasibility of the project. Several studies were needed, including environmental, equipment operation, distribution and economics, before the project moved forward.

Alliance's project area initially focused on the American side of the river 5 miles upstream and downstream of the Ogdensburg-Prescott International Bridge. The company had narrowed its boundary area to four primary locations.

Alliance officials said previously that commercial shipping traffic on the St. Lawrence would not be affected by the project.

An underwater turbine would capture the flowing water to rotate the turbine blades and produce electricity. The power then is transmitted by underwater cable to shore and to the power grid for distribution. The underwater turbines have screens in front of them to prevent fish and diving birds from going through them.

Proponents of underwater turbines say the devices are more environmentally friendly energy sources than fossil fuels or nuclear energy. Opponents have concerns with the technology, including reliability of the equipment, impact upon fish species and spawning opportunities in the river, the size of the structures, the movement of sediment on the riverbed and the potential loss of recreational use of parts of the river.

Alliance has 30 days to appeal FERC's decision. Company officials couldn't be reached for comment Monday.