85-1-501 . Survey of power generation capacity. The department shall study the economic and environmental feasibility of constructing and operating a small-scale hydroelectric power generating facility on each of the water projects under its control and shall periodically update those studies as the cost of the electrical energy increases. In determining whether small-scale hydroelectric generation may be economically feasible on a particular project, the department shall consider: (1) the estimated cost of construction of a facility; (2) the estimated cost of maintaining, repairing, and operating the facility; (3) the estimated cost of tying into an existing power distribution channel; (4) the ability of public utilities or rural electric cooperatives to lease and operate such a facility; (5) the debt burden to be serviced; (6) the revenue expected to be derived; (7) the likelihood of a reasonable rate of return on the investment; and (8) the potential impacts on water supply and streamflows.
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