APS to Close Hydroelectric Plant in Central Arizona

November 17, 1999

Phoenix, AZ - APS and several environmental groups have reached an agreement to close and decommission the company’s hydroelectric plant in central Arizona and restore full flow to Fossil Creek.

For the past year, APS has been in discussions with an environmental partnership led by American Rivers and including the Northern Arizona Audubon Society, Sierra Club-Grand Canyon Chapter and the Nature Conservancy: Arizona Chapter. The final agreement was negotiated with the environmental partnership and the Center for Biological Diversity.

Under the terms of the agreement, the stream’s full flows will be returned to the creek bed by Dec. 31, 2004. Restoration work may take another five years to complete and will include removal of some or all the structures, stabilizing and rehabilitating disturbed areas and restoration of affected riparian communities. The parties will reach a final agreement on the scope of the restoration work by July 1, 2000. The agreement will be submitted to the Federal Energy Regulatory Commission (FERC), where a renewal application for the plant’s 30-year-old operating license has been pending since 1991.

Nestled along the Verde River between Strawberry and Camp Verde, Fossil Creek and the surrounding area is virtually untouched by development and surrounded by wilderness. Fossil Creek’s origin is a cluster of springs that contribute up to 50 percent of the Verde River’s water during low-flow periods. It has a healthy native fish community and a diverse native plant community above the diversion dam, but the 14 miles of river downstream are affected from reduced flows. The return of full creek flow will cause large travertine deposits that create fish habitat, as the creek did prior to the dam’s construction.

“Together with several environmental organizations, APS realized the singular uniqueness of this beautiful natural stream and the opportunity to restore it to its natural state,” said Frank Brandt, Past President of the Northern Arizona Audubon Society.

According to Sandy Bahr, Conservation Director, Sierra Club-Grand Canyon Chapter, “With many of Arizona’s native fishes threatened and endangered, it is essential that we take advantage of any opportunity to restore their habitat. We are very pleased with this step forward in restoring Fossil Creek.”

APS owns and operates the Childs-Irving hydroelectric plant which diverts more than 95 percent of the water from Fossil Creek about a quarter-mile downstream from the springs. The water is channeled through a wood, steel and concrete flume to drive four turbines that produce 4.2 megawatts of energy. None of the water is consumed in the process, and it eventually is released into the Verde River about 3 miles upstream of the Fossil Creek confluence.

“APS is committed to the responsible use of natural resources such as water, air, soil and forests,” said Ed Fox, Vice President of Communications, Environment & Safety. “We feel we have managed the area consistent with this commitment for the last 50 years. With restructuring of our industry we have reviewed our operating processes in light of our business goals and our other commitments. We have now determined that it is simply the right business decision and the right environmental decision to decommission Childs-Irving and reclaim the unique riparian resource that surrounds Fossil Creek.”

APS, Arizona’s largest and longest-serving electric utility, serves more than 805,000 customers in 11 of the state’s 15 counties. APS, with headquarters in Phoenix, is the largest subsidiary of Pinnacle West Capital Corporation (NYSE:PNW).

The Arizona Power Company, a predecessor to APS, built Childs-Irving in the early 1900s to provide electricity to the mining industry near Jerome as well as to the growing neighboring settlements. In the mid-1920s, the Salt River Valley also relied on electricity generated by the plant because a drought emptied the reservoirs that produced electricity. Childs-Irving was added to the National Register of Historic Places in 1991. “Over the years the Childs-Irving plant was pivotal in the development of both the Verde and Salt River valleys, but it no longer plays that role today,” Fox said. “We will honor its historical significance as we plan its closing.”

Mindy Schlimgen-Wilson, Associate Director, for American Rivers’ Southwest Regional Office, commended APS for accurately weighing the small power generation gains with the heavy costs to the river ecosystem. “Fossil Creek is one of the most unique natural resources affected by a hydroelectric facility anywhere in the country, with its unusual travertine geology and the incredible role it can serve in the survival of many threatened and endangered species. Both APS and the environmental community can take great pride in signing this monumental agreement that will benefit us all, and generations to come.”

Robin Silver, Conservation Chair of the Center for Biological Diversity, said, “This is a historic agreement for Arizona. In the foreseeable future, Fossil Creek will provide the only year-round water in the entire Verde River drainage. We are grateful that APS has joined forces with the environmental community to return full flows to Fossil Creek.”

“This is a tremendous example of how the Arizona environmental community and a major corporation can work together to make an enduring difference for Arizona’s environment,” said Les Corey, Executive Director, The Nature Conservancy: Arizona Chapter.

Jim McDonald
APS
602-250-3704
JMcDonald@apsc.com 

Craig Nesbit
APS
602-250-2896
Craig_Nesbit@apsc.com