Dec 20, 2007 - Knight Ridder Tribune Business News
Author(s): Kathryn Thier

Dec. 20--Duke Energy is taking Mooresville to court in a squabble over who controls the water in Lake Norman and whether the town's water rights trump those of the region.

The move comes just a few weeks after the town said it wouldn't follow an order from Duke to stop work that would increase how much water the town draws from the lake. Town officials say the water belongs to citizens, not a for-profit company, and that they have the right to modify a water intake on town-owned property. Duke controls lake water levels through its federally regulated hydroelectric license and says the intake is within that project boundary. The company says it has the right, through its federal license, to manage the water for all residents within the two-state Catawba River basin.

Federal Energy Regulatory Commission spokeswoman Celeste Miller declined to comment. But the commission sent Duke a letter Dec. 12 saying, in essence, that Mooresville isn't authorized to work on its intake. Duke filed the federal lawsuit to stop the "unauthorized and unapproved construction that Mooresville's undertaking," said spokesman Rick Rhodes. The company has a responsibility under its license to ensure any work done "in the project boundaries is done under FERC guidelines," he said. That approval includes listing the amount of water to be withdrawn, said Duke spokesperson Marilyn Lineberger.

In its lawsuit, the company says Mooresville's actions threaten regional cooperation on sharing the Catawba River's water, especially "given the current exceptional drought conditions." The problem began when Duke sought and received approval through the federal commission in 2005 for Mooresville to expand its intake at a new site on land Duke owns. Mooresville decided that modifying its existing intake on its own land was less expensive and proceeded with that option. Mooresville officials contend Duke gave the town control over its intake when the company deeded the town that land in 1962, after the company flooded the town's previous intake to create Lake Norman.

A sticking point for Mooresville is that Duke wants the town to join a multi-municipality water management group developed as part of the company's recent federal relicensing application process. Mooresville Mayor Bill Thunberg said the town has agreed to and implemented conservation measures associated with the water management group, but won't join the group. "To become an official member, Duke requires us to sign away the property rights of the citizens of Mooresville," he said. Mooresville was one of three communities that did not join a Catawba River water-management group formed this month to address drought and other problems.

Of the other two communities, Statesville said it was still considering whether to join the group nd Long View, in Catawba County, said it planned to join. The N.C. Department of Environment and Natural Resources has given the town a permit to expand its water plant, which includes upgrading the intake on the town's land, said Town Manager Jamie Justice. For now, the work will allow the town to draw 6 million gallons more a day. Staff Writer Bruce Henderson contributed.

© Copyright 2007 NetContent, Inc. Duplication and distribution restricted.