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FINAL REPORT - International Joint Commission

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Recreational Boating<br />

Validation<br />

The Shared Vision Model was compared to an Excel model by means of stage damage curves and found<br />

accurate. The stage-damage relationships were verified for internal consistency (i.e., number of slips,<br />

depths of each, the draft of boats assigned to the slip, and the calculated elevation at which the slip could<br />

not accommodate the boat) for above-dam U.S. marina damages.<br />

<strong>FINAL</strong> <strong>REPORT</strong><br />

Sensitivity Analysis<br />

The plans were evaluated with normal, doubled and halved willingness-to-pay estimates and it was found<br />

that only when plans were exceptionally close did plan rankings change. This demonstrated that plan<br />

selection was not sensitive to errors in user-day value estimates.<br />

Hydropower<br />

Validation<br />

The economic experts were asked to advise on the true measure of public welfare and they agreed that<br />

marginal changes in energy production at estimated market prices should be used. A study was<br />

commissioned to determine what rates to use. The three power entities were asked to determine which<br />

other metrics they would use to rank plans. Adjustments were made to changes in Ontario generation for<br />

concurrent changes in Niagara generation (higher Lake Ontario elevations increase the head and energy<br />

produced at Moses-Saunders but reduce the head and energy produced at Niagara Falls).<br />

Sensitivity Analysis<br />

None. There were no challenges to the seasonal patterns of prices, which reflect the increased use of<br />

electricity to heat and cool. Plans that produce more hydropower benefits do so because they maintain<br />

slightly higher Lake Ontario elevations. There is no doubt that this creates a higher “head” at the<br />

Moses-Saunders power dam, which will lead to greater energy production.<br />

Commercial Navigation<br />

Validation<br />

Cross-checks of performance indicators carried out between the navigation model and the other two<br />

evaluative models of the Study showed that calculations were being performed correctly - all three models<br />

returned consistent results. The navigation model used 1995-1999 shipping data, including ship cost<br />

estimates updated to 2005 levels, so the base case is defensible. Traffic is about the same now as it was<br />

from 1995-1999, but container traffic in Montreal is up dramatically and not reflected in the model.<br />

As a result, the estimates of shipping costs and benefits are probably too low for current and near-term<br />

future conditions.<br />

Sensitivity Analysis<br />

Plan differences are most dramatic in the area of delay costs, especially delays caused because the slope<br />

of the water surface in the upper St. Lawrence River is too steep to navigate safely. In one short segment,<br />

the limit for delays is a 0.25-meter (0.82-foot) drop, and most gradient delays occur because of problems<br />

in that reach.<br />

Options for Managing Lake Ontario and St. Lawrence River Water Levels and Flows<br />

83

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