Frequently Asked Questions
1). Why did PPL withdraw the original application?
At the time PPL withdrew the application for the Holtwood expansion in December 2008, the high cost of financing made all investments in large capital projects problematic. Because of the high cost of borrowing money, escalating construction costs and projections of future electricity prices, the $440 million project was not economically viable any longer.
2). What changed? Why did PPL decide to reapply?
PPL never lost its interest in the project, and reconsidered it in view of the tax incentives for shovel-ready renewable energy projects in the federal government’s economic stimulus package. The potential for tax incentives offsets the higher borrowing and construction costs that originally caused PPL to withdraw the application.
3). Is PPL getting federal bailout money for this project?
No. PPL will receive no grant dollars from the federal government for the Holtwood project.
4). What does the project include?
The Holtwood expansion proposal includes improvements to the fish passage facility and construction of a new 125 megawatt hydroelectric generating plant adjacent to the existing hydroelectric plant along the Lancaster County shore. These improvements include extensive in-river rock excavation to create additional passage routes for American shad, replacement of wooden flashboards on the Holtwood dam with new inflatable rubber dam segments, and construction of a new low-height barrier dam across the Susquehanna River immediately below the existing Holtwood dam. The inflatable dam is expected to stabilize lake levels, improve recreational boating and enhance flow control for migratory fish. The barrier dam is expected to stabilize river habitat downstream of the Holtwood dam and direct American shad to the fish passage facility.
5). What is the overall timeline for this project?
Pending approval by federal and state government agencies, PPL could begin construction in 2010 and the new hydroelectric plant could be generating electricity in 2013. In addition, PPL is seeking an extension of the existing operating license for the Holtwood plant until 2030. The existing license expires in 2014.
6). Will new power lines have to be built to support this project?
The additional electricity generated by Holtwood can be carried by existing lines. A short transmission line, serving as an outlet for the new generation, will be constructed on plant property leading up to the substation at the top of the hill overlooking the hydroelectric plant.
7.) What about the transfer of land owned by PPL for preservation?
PPL intends to proceed with the transfer of land around the Holtwood plant to the Lancaster County Conservancy. We continue to work with all of the parties involved to make sure the land is preserved and will always remain available for public use and enjoyment.