The “hydroelectric” part of this historic plant is currently dormant. (Photo Jan. 2, 2026)
Albany’s small hydropower generator in the Vine Street water plant has never been a big factor in the energy picture, but lately it has played no role at all.
The generator has been out of action for about a year and a half, and it looks to me like it might never restart.
“The last time Vine Street generated hydropower was in May 2024,” Kristin Preston, operations manager in Albany Public Works, told me last month. “The City is still working through the details of renewing the ‘interconnect agreement’ with PacifiCorp that expired and is required when putting energy back into the grid. The expected timing on that is springtime.”
When it’s operating, the 500 kilowatt generator in the historic powerhouse on the Calapooia River produces enough juice to power about 240 houses. Its output goes into the Pacific Power grid.
The city’s federal hydropower license allows operation of the turbine at the end of the Santiam Canal only when the flow in the Santiam River is at least 1,100 cubic feet per second. So the generator never operates in summer or early fall.
But it should normally be running now, with the river flow high. It’s not clear why getting a new power sales contract should be difficult.
But the lack of the sales contract is not the only problem. In June 2024, consultants told the city it should consider decommissioning the hydropower plant. They said the turbine needed repairs that would cost more than what power sales bring in, and the operation was uneconomical.
It has never been economical, given the millions the city spent on getting a new generator (from China) in 2008, getting a federal license, and rebuilding the intake of the canal on the Santiam River above Lebanon.
From my perspective, past city councils had a sentimental attachment — perfectly justified in my opinion — to continuing an Albany tradition of generating electricity, starting with steam in 1888 and then with hydropower in 1925.
The question now is whether that tradition should carry on, and at what price. (hh)
Albany’s power generator in 2017, when last I saw it, sitting next to a 1925 antique in the Vine Street powerhouse.
Don’t forget the money they wasted on “canal beautification”. That was to dredge low spots in the canal for water flow, but charge it to something else. Another blatant case of money laundering under previous regimes.
There has never been any “canal beautification” as far as I know. The canal has to be maintained all the time.
The canal and power plant are a cornerstone of the city. It would be sad to see that history disappear. Since electric power is in short supply, it seems the power company would want all it can get. 500KW is the output of more than 50 homes with solar panels, but with output only six hours a day on average and only when sunny. At about $30K a home, that is $1.5M investment. It would take four times that number of homes for the same annual output since the turbine runs 24/7. Is the upgraded turbine more costly than $6M?
I’m of the same sentiment as “Councils of Old” who facilitated keeping the hydropower plant going which dates back to 1888. Generating some of our own power makes perfect sense as far as cutting back on power generated by fossil fuels.
Here in Sweet Home, the little hydro generator on the South Santiam needed an upgrade to get a new PP contract. Apparently, they are worried about another Carrington event and want a fast power plant shutdown device to protect the grid.
This thing has been a cluster from day one. It never paid for itself on any day, let alone over time. The only time that it can be used is when there is a surplus of power from Bonniville, that power is being sent to California at a cheap price, and the power coming back from California is more expensive, California is doing away with power generation and wanting more from the Dams up here. The generator upgrade was fashionable and not much more. It was always a feel good measure that only made you sad when you looked at all the expenses.
I’m truly sad to read this update Hasso.
Of all the things you keep us informed about with our city funding of trying to keep “Historical” landmarks intact…This of all things has everything we should be funding to preserve!
It’s got history, it’s providing clean energy, it’s needing funding to maintain an ongoing need to our community.
Our city is considering to demolish it because it’s going to be too expensive???
Dang… the river walkway alone has been funded how many taxpayers dollars to complete?
How few of our town folk get to enjoy those funds of glorification of few vs this true minuscule of funds to actually provide something that that’s providing history and function??
It was purchased in CHINA and, after 17 years of part time use, it’s WORN OUT! Cheaply made replacement parts, if even available, are prohibitively expensive to buy & install. How much would you spend to repair a Wal Mart bicycle?
Add the cost of PERS employees to operate, it’s pure economic stupidity. How many employees had to be “trained” with a resultant pay increase that has gone to waste. Especially when you add the pension costs. Not all of the money lost in this fiasco is readily apparent.
Its the turbine, not the generator, that needs repairs, according to the consultants’ report. They did not look at the Chinese-made generator.
I didn’t specify, but does it matter?
I smell a rat. Don’t know all the details, but isn’t there a distribution problem from green energy to the main grid. Hydro power should be easy and cost effective,, the city needs to hire a consultant that has no connection with the power company.
Hasso, thanks for this really interesting article. Surprisingly similar to the airport in that consultants have to be brought in to say if something is still financially viable. Is sad this type of analysis has to be outsourced
Would be interesting to see how far above the operational costs/output is compared to what users are paying and the same calc cost of other “sustainable” power production.
Guessing the payback time for the needed upgrades can’t be calculated since cost > selling price