FINAL REPORT - International Joint Commission

Hydroelectric Power Generation
The three hydropower operators on the St. Lawrence River are the New York Power Authority, Ontario
Power Generation and Hydro Quebec. There is an annual hydropower production of approximately
25 million MWh (13 million MWh at Moses-Saunders and 12 million MWh at Beauharnois-Les Cedres).
The market value of energy produced annually is approx. $1.5 billion U.S. at current market rates. Enough
energy is produced to meet the needs of about 2 million homes. Each of the three companies operates in
different market environments. The New York Power Authority works under a competitive market and
price is determined by the most expensive block of power per hour. Ontario Power Generation works
under a real-time wholesale pricing structure based on both regulated and market prices determined by
daily forecasted demand. Hydro Quebec operates under a regulated system based on the lowest possible
cost. Up to 165,000,000 MWh of electricity per year must be supplied to service Quebec residents and
anything above this can be sold at market prices.
FINAL REPORT
The demand for hydropower is expected to grow, along with government supplied economic incentives for
its use in both countries to help meet new carbon emission goals. Given the environmental and economic
advantages of hydropower and its importance to the regional economy, the overall value of hydropower is
expected to increase in the next few decades.
Municipal, Industrial and Domestic Water Uses
There are 6.3 million residents on Lake Ontario and the upper St. Lawrence River (both Ontario and the
U.S.) and 2.3 million residents on the lower St. Lawrence River who rely on the Lake and the River for
water. There are high social, political and economic costs if water is not provided.
Municipal, industrial and domestic water demands will stay about the same in the near future, but
municipalities along the St. Lawrence River will invest millions of dollars to improve water quality and water
supply reliability during droughts. Small and one-home water supply systems will continue to be
converted to community systems or modified so that water supplies can be maintained during lower water
level conditions on the Lake and the River.
Wetlands and Environmental
As in the case of the economic evaluations, the environmental impacts of proposed regulation plans were
measured relative to what is expected to occur if regulation remains unchanged, under the present set
of policies.
The focus in the environmental evaluation was on the effect of water levels on coastal marshes. Briefly,
water level regulation has reduced the variety of plant species along the coast, which creates stresses on
the animal populations that thrive on plant types that suffer under regulated water levels. In general, a
more diverse environment will better resist impacts from environmental threats in the Great Lakes, such as
toxins and invasive species (Tilman and Downing, 1987; Schindler, 1998). Lake Ontario coastal marshes
provide breeding and feeding grounds for all coastal life, including several species-at-risk. Water level
patterns have a direct physical influence on the breeding and nesting success of marsh birds and fish that
inhabit the marshes. More varied water levels create more variety in marsh plants, which creates a more
productive and robust coastal ecology and habitat. Water levels on the St. Lawrence River can strand fish
or drown bird eggs. The societal value of the environment is expressed through laws protecting habitat
(i.e., wetlands) and specific faunal species (special interest or endangered).
Options for Managing Lake Ontario and St. Lawrence River Water Levels and Flows
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