Hydroelectric power frequently asked questions

The Bull Run dams that store the City's drinking water supply were constructed with the option to install hydropower, but the hydropower facilities weren't built and licensed until the 1970s. The hydropower plants began generating electricity in 1982 and have now operated for more than 40 years.

Power from our hydroelectric facilities (known as the Portland Hydroelectric Project, or PHP) is sold to Portland General Electric and fed into the regional power grid.  The amount of power generated varies, but the average generation is enough to meet the annual needs of about 10,000 households. 

The PHP generates clean electricity as a supplemental benefit of operating our Bull Run water supply system. This clean electricity contributes to the State's renewable energy goals and the broader transition away from using fossil fuels.

But our hydropower facilities do more than just generate electricity! Over time, the hydropower facilities have become an important tool for managing our water system. In addition to spillways and valves, the powerhouses provide pathways to move water through the dams. This provides critical redundancy and resilience for aging water supply infrastructure while also helping the City meet water quality standards and other environmental regulatory requirements related to operating the water supply system.

Hydropower generation is a supplemental benefit of operating the City's water supply system. The PHP generates power from the water the City releases downstream to meet water supply needs and HCP obligations. In doing so, the PHP's two powerhouses can generate enough clean energy to power approximately 10,000 homes in the region.

The City outlined its priorities for achieving decarbonization and resilience in Portland's 2022–2025 Climate Emergency Workplan. Two of the City's key targets are cutting carbon emissions in half by 2030 (compared to 1990 levels) and reducing carbon emissions to net zero by 2050.

By continuing to serve as a source of clean electricity for the region, the PHP prevents the need for other sources of electricity, reducing fossil fuel emissions today and minimizing the need for additional renewable construction in the future.

Revenue from the hydropower facility varies over time. Weather affects the available water flow, and supply and demand affect power pricing in the regional energy market. Over its 41-year history, the PHP has generated enough revenue to cover its operational costs, pay off the City's debt from constructing the facilities, and contribute $13 million to the City's General Fund. 

The City has developed estimates of the expected range of future revenues for the PHP. While future financial outcomes may not mirror past performance exactly, the analysis indicates they are likely to remain broadly consistent.  Our assessment incorporates projected climate effects on the Bull Run River, anticipated electricity rates, and expected operational expenses for the PHP. 

The City has evaluated the economic viability of continued PHP operation (renewing the federal hydropower license) compared to decommissioning the PHP (surrendering the license). Continued operation is likely to have a much better financial return than decommissioning the project.

In part, this is because the City would need to replace key drinking water operational functionality currently provided by the hydropower facilities. Hydropower revenues would also no longer contribute to the General Fund.

The current Federal Energy Regulatory Commission (FERC) license for the Portland Hydroelectric Project (PHP) expires in February 2029. To continue operating the PHP, the City must get a new license. The FERC relicensing process takes 5+ years, so the City formally began the process in December 2023. 

A new license for the PHP will allow the City to continue providing excellent and reliable drinking water while generating clean energy. If the City did not pursue relicensing, it would be required to undergo a similar regulatory process to surrender the license.

The City is using the Integrated Licensing Process (ILP), FERC's default process. The Integrated Licensing Process is a highly structured regulatory process that provides consultation and engagement opportunities for agencies, Tribes, and other interested parties throughout the process in order to inform the City's license application and FERC's licensing decision. More information on the ILP is located on FERC's website. The ILP anticipated timeline for relicensing the PHP can be found on the City's PHP FERC relicensing web page.

The Integrated Licensing Process (ILP) is designed to provide numerous opportunities for review and input throughout relicensing. More information on the ILP and opportunities for involvement is located on FERC's website. The ILP timeline for relicensing the PHP can be found on the City's PHP FERC relicensing web page. Parties interested in tracking communication and announcements on the process should sign up for the City's PHP newsletter and sign up for notifications from FERC Online under docket P-2821-014. 

The estimated cost of the relicensing process from fiscal year 2023–24 through fiscal year 2028–29 is $10.5 million. Of that, $8.1 million is budgeted for external costs and $2.4 million for City staff support. External costs include consulting support, legal services, and other contracts. 

Surrendering the license would not allow the City to avoid this expenditure. If the City did not pursue relicensing, it would need to undergo a similar regulatory process to cease power production and surrender the license. That process would require a similar level of spending on staff support and external consultants. 

Relicensing costs are shared between the Bureau of Hydroelectric Power and the Portland Water Bureau. Both bureaus benefit from the operation of the hydropower facilities. The Bureau of Hydroelectric Power is a division of the Water Bureau, and the two are managed individually, with separate budgets and revenue streams. 

Currently, the Portland Clean Energy Community Benefits Fund (PCEF) is providing $6 million to support relicensing expenses.

The Bull Run dams and reservoirs were developed for the municipal water supply system and that continues to be their primary purpose. As such, most of the effects on fish in the Bull Run Watershed stem from operating the water supply system and are addressed by the 2009 Bull Run Water Supply Habitat Conservation Plan (HCP). The HCP took over 10 years to develop and includes 49 measures to avoid, minimize, and mitigate for the effects of the water supply system on fish species listed under the Endangered Species Act. It also benefits other fish and wildlife species. These measures include flow releases, water temperature management, and spawning gravel supplementation in the lower Bull Run River, and a variety of other actions to protect and improve habitat for salmon and steelhead. The PHP operates in accordance with HCP requirements.

As part of relicensing, the City is conducting several studies to gather additional information to supplement the existing information. The studies will help FERC assess the potential effects on fish from hydropower. Read below to learn more about the Fish Entrainment Study and the Reservoir Fish and Mussels eDNA Sampling Study, along with the City's other relicensing studies. 

The City of Portland is performing six studies to gather additional information and inform the relicensing process. Detailed information on these studies and initial study results can be found on our PHP relicensing documents web page.

Fish Entrainment Study: The Fish Entrainment Study modeled the intake velocities of powerhouse intakes and compared them against the swim speed of fish to determine if fish are at risk of entrainment in the turbines. All fish species and life stages known to be in the reservoirs were determined to be at low risk of entrainment. This study was completed in 2025.

Reservoir Fish and Mussels Environment DNA (eDNA) Sampling Study: The eDNA sampling confirmed the presence of already documented reservoir fish species, identified eDNA from a previously unverified species (Brook Trout), and corroborated the absence of species of study interest that have never been observed upstream of Dam 2. This study was completed in 2025.

Special-status Amphibian and Aquatic Reptile Study: This study is using habitat identification, visual encounter surveys, and eDNA sampling to improve upon existing baseline data for sensitive amphibians and aquatic reptiles near the hydropower project. Species of interest include western toad, Cascades frog, and northwestern pond turtle. This study is ongoing and will be completed in 2026. 

Temperature and Streamflow Modeling Study: This study uses updated water demand forecasts and existing modeling tools to assess the influence of simulated changes in demand, operations, and environmental stress on simulated temperature and streamflow performance in the lower Bull Run River. This study is ongoing and will be completed in 2026. 

Archaeological Resources Survey: This study included archival research and field surveys that identified ten archaeological resources in the study area, one of which has been recommended as preliminarily eligible for the National Register of Historic Places (NRHP). The City will consult with Section 106 parties regarding eligibility, effects, and treatment for any NRHP-eligible sites. This study was completed in 2025. Consultation is ongoing. 

Properties with Traditional Religious and Cultural Importance Study: In collaboration with participating Indian Tribes, this study includes literature reviews, interviews, and site visits to identify traditional cultural places and properties with traditional religious and cultural importance within the study area. This study is ongoing and will be completed in 2027. 

Protection of cultural resources is required by federal, state, and local regulations. As part of relicensing, the City is developing a Historic Properties Management Plan to serve as a guide to facilitate the responsible stewardship of historic properties on City-owned lands within the Bull Run Watershed Management Unit and within the Portland Hydroelectric Project (PHP). The Historic Properties Management Plan will be used by the City to identify, evaluate, protect, and treat cultural resources and historic properties potentially affected by the continued operation and maintenance of the existing Bull Run water supply system and the PHP. The City's process to develop the Historic Properties Management Plan includes multiple opportunities for review and comment by Section 106 consulting parties.