You asked for a summary of the proposed Housatonic River Project's shoreline management plan, particularly with regard to Candlewood Lake.

SUMMARY

The project consists of a series of hydroelectric dams along the Housatonic River in northwestern Connecticut, including the Rocky River dam on Candlewood Lake, and adjacent shoreline and riverfront lands. The project was recently re-licensed by the Federal Energy Regulatory Commission (FERC). As part of the re-licensure, FERC required the licensee, a subsidiary of Northeast Utilities, to develop a shoreline management plan. The licensee completed a draft plan on December 16, 2005.

The draft plan addresses the management and development of the project's land and the conservation of its resources. It begins with an introduction that describes the plan's scope, development, and organization. Section 2 of the plan provides background information regarding each of the five dams associated with the project, including an inventory of existing shoreline development facilities and aesthetic resources. Section 3 provides a summary of other relevant management plans and their relationship to the draft plan. Section 4 outlines the plan's overall goals and the specific goals for Candlewood Lake and the other components of the project area. Section 5 lists specific shoreline policies that will guide management and decision making regarding future uses of shoreline lands. Section 6 describes five programs designed to implement the goals and policies of the plan, including specific objectives and management actions. Specific development guidelines and standard operating procedures for these programs are described in appendices A and B.

The final plan promises to include an executive summary and a section outlining how the plan will be implemented, including provisions for monitoring and enforcement.

INTRODUCTION AND EXISTING CONDITIONS

On June 23, 2004 FERC gave Northeast Generation Corporation, a subsidiary of Northeast Utilities, a new license for its Housatonic River Project. The project includes the Rocky River hydroelectric dam and nearby shoreline lands on Candlewood Lake. The project also includes dams and shoreline on Lake Zoar and Lake Lillinonah, and the Falls Village and Bulls Bridge dams and associated riverfront lands.

The new FERC license requires that the corporation develop a comprehensive shoreline management plan for shoreline and riverfront lands associated with it. The plan's goals, policies, and programs apply to all land within the project boundary, up to 200 feet of the water's edge measured from the high water mark. If the project boundary is less than 200 feet from the high water mark, then the plan only applies up to the project boundary. The plan seeks to provide a comprehensive way for managing multiple resources and uses of the project's shorelines that is consistent with FERC license requirements and project purposes, including protecting and enhancing the environmental values of the project while safely operating and maintaining the hydroelectric facilities. The plan was developed in consultation with stakeholder groups that worked on specific management solutions for (1) Candlewood Lake, (2) lakes Zoar and Lillinonah, and (3) the Bulls Bridge/Falls Village areas.

Section 2 of the plan describes the existing conditions of the project area, including its topography, land uses, and environmental characteristics. It describes Candlewood Lake and the other areas in detail, noting their aesthetic resources and shoreline facilities. In the case of Candlewood Lake, the plan states that the lake's 60 mile-shoreline is dotted with over 2,000 residences, most of whom have

deeded right-of-way access to the lake. The lake also has numerous private marinas and public parks. The character of the shoreline creates a relatively undeveloped appearance. Most parts of the lake have a vegetative buffer and there remain certain long stretches of the shoreline that are undeveloped.

According to the plan, the most significant aesthetic resources associated with Candlewood Lake are Candlewood Mountain and Vaughns Neck, which is a large peninsula of open space located in the center of the lake. This property provides a scenic backdrop to the lake and represents by far the largest area of undeveloped, natural shoreline around the lake.

OTHER RELEVANT PLANS

Section 3 of the plan notes that several existing plans seek to protect and manage the Housatonic River. These include the Action Plan for Preserving Candlewood Lake prepared by the Candlewood Lake Authority, the River Management Plan prepared by the Housatonic River Commission, and critical habitats and historic properties management plans prepared by Northeast Generation Corporation as part of the relicensure process. The draft plan describes several of these existing plans in detail. In addition, many municipalities along the Housatonic River have completed or are completing plans of Conservation and Development that contain elements that relate to the draft plan. These municipalities include Danbury, New Milford, and Sherman, which border Candlewood Lake.

The draft plan states that it and the existing plans share the goal of protecting the Housatonic River's features and improving its water quality through the use of various planning, land management, and natural resource management strategies. The draft plan is designed be consistent with and support of existing programs, management and planning strategies encompassed in the existing plans.

GOALS

Section 4 of the plan includes general goals for guiding management of all shoreline lands within the project's boundary. These goals are designed to reflect the requirements of the FERC license and the input of stakeholders involved in the planning process. The goals are to:

1. allow for and maintain safe public access to shoreline and riverfront lands and waters,

2. promote the conservation of important resource and environmental qualities surrounding the project's shorelines and riverfront land,

3. provide for the stewardship and development of shoreline and riverfront areas and facilities that are consistent with the project's needs and demands as well as other considerations, and

4. promote education and awareness of shoreline resources and management programs.

In addition to these goals, the plan includes specific long-term management goals for Candlewood Lake and the other project areas. In the case of Candlewood Lake, these goals for are to conserve undeveloped shoreline areas, enhance environmental stewardship of developed shoreline lands, and minimize future increases in crowding and user conflicts.

SHORELINE POLICIES AND PROGRAMS

Policies

Section 5 of the plan includes policies addressing (1) environmental protection and land conservation, (2) shoreline development, and (3) recreation and congestion management.

The environmental protection/land conservation policies require that the use of shoreline lands be governed by a standardized classification system, including identification of conservation lands, and a set of development guidelines designed to protect environmental resources. They also require that public access and use of project lands, including recreational use, be managed to protect known sensitive environmental or cultural resources. Motorized recreational uses will not be allowed on project lands and existing naturally vegetated shorelines will be protected and, where feasible, re-established.

The shoreline development policies require that Northeast Generation Corporation approve and license all structures and ground disturbing activity, e. g. , excavations, located on project lands be. For new structures or activity, approval must be obtained before ground disturbing activities begin. No new permanent or habitable structures or septic systems will be allowed. All structures and construction on project lands must adhere to the development guidelines included in Appendix A of the plan.

Fees shall be charged for construction of facilities or altering of project lands, as well as for access to some project waters to cover the costs of implementing and enforcing the plan. On the other hand, construction of structures such as docks and seawalls will be allowed on project lands in accordance with existing property rights.

In addition to the above provisions, which apply to the entire project, the plan limits commercial use of project land at Candlewood Lake to existing activities licensed as of June 1, 2004. Existing licenses that allow for sea plane ramps at Candlewood Lake will be allowed to continue until ownership changes.

The last set of polices require Northeast Generation Corporation to work with state and local agencies to implement measures to reduce congestion at specific developments. In the case of Candlewood Lake, the policies limit the number of docks and slips allowed on the shoreline to existing deeded rights, existing commercial leases, and existing licenses. For lake associations, the total number of dock slips shall not exceed those necessary to meet deeded rights for interior lot owners. In addition, the number of daily boat launches at Candlewood Lake will be managed to reduce crowding and user conflicts, particularly on summer weekends.

Programs

Section 6 of the plan includes a set of integrated programs and associated actions designed to implement these policies. These include building licensing, vegetation protection, and land use classification programs, as well as a program to reduce crowding at boating facilities.

The plan requires Northeast Generation Corporation to expand its current building licensing program to include all structures and ground disturbing activities on project lands, including structures constructed before September 1, 1988. The licensing program will serve as a way for compiling data regarding shoreline uses, implementing new development guidelines and new fees for cost recovery, and promoting the protection and establishment of shoreline buffers. Under the licensing program, all individuals or businesses currently using project lands, including upland property owners who maintain docks, seawalls, and other shoreline amenities will have to obtain a license from the corporation. Application reviews will be coordinated with local jurisdictions to ensure that licenses are not issued until all applicable local permits have been obtained.

The plan also requires the corporation to establish a program to promote the protection and, where feasible, re-establishment of vegetated buffers along the shoreline. Under this program, the corporation must require the protection, and where necessary, re-establishment of vegetated buffers when issuing licenses for any new construction on project lands, including repair or replacement of existing structures. Natural vegetation within the project boundary must be preserved if present. Ground-disturbing activities on project lands must be minimal to maintain the function of the vegetative buffer.

Under the plan's shoreline classification and land conservation program, all shoreline lands must be designated and managed according to the plan's standardized classification system, based on their physical characteristics and existing uses. The new FERC license for the project specifically requires that it (1) identify conservation restrictions or other similar measures on land owned by the corporation within the project boundary that are not already dedicated to open space and (2) include provisions for identifying opportunities to provide conservation easements for greenway and trail development and improved public access within the project boundary.

The crowding user conflict reduction program is designed to reduce crowding, congestion, user conflicts at Candlewood Lake and Bulls Bridge in order to (1) improve public safety (2) enhance the quality of the experience for all lake shoreline users. The goals of the program are to (1) convene a Lake Advisory Committee and River Advisory Committee by May 2007, (2) maintain access to Candlewood Lake at current allowed levels, and (3) remove unauthorized moorings across the project by May 2007. Under the program, the corporation must (1) limit the number of approved docks and boat slips according to a formula specified by the plan; (2) not approve any additional boat launches or ramp capacity; and (3) coordinate with municipalities, the state, private marinas, and shoreline communities to create and implement programs to manage access and boating use at existing boat ramps.

Finally, the FERC license authorizes the corporation to collect fees to cover the cost of the shoreline management activities. Under the plan's cost recovery program, a development fee will be assessed on all structures located on project lands. The fee will be assessed every five years beginning in 2008. Licenses approved between assessment years will be assessed on a pro-rated basis. A formula will be developed for determining fees based on the number and type of structures licensed and the total cost of the management program. A point system will be established that accounts for multiple uses of a given property, the presence or absence of deeded rights, environmentally beneficial actions such as establishment of vegetated buffers which would result in credits that would reduce the assessed fee. License applicants will also be assessed a fee to cover the corporation's administrative costs. In addition, the corporation will work with the state, municipalities, and community associations around Lake Candlewood to implement a fee for all day-use boaters. The fee will be assessed for launching a boat and will be enforced at the launching facilities.

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