BergerWorld: 2nd Quarter 2007

Afghanistan
Berger is the lead contractor for the reconstruction of Afghanistan. On September 30, 2002, the United States Agency for International Development (USAID) awarded the Berger Group the $730 million Rehabilitation of Economic Facilities and Services (REFS) Program. REFS included an ambitious energy program, which commenced with the Kajakai Dam spillway assessment and grew rapidly to include major hydropower rehabilitation works and emergency power generation support services to provide back-up at the Kajakai Hydropower Station, as well as technical surveys and site assessments at two 3.5-megawatt, Soviet-era diesel generators in Kandahar and the 3.85-megawatt Darunta Hydroelectric Plant, located outside of Jalalabad on the Kunar River.

Located in Helmand Province in southwestern Afghanistan, Kajakai provides power for the three main population centers in the cities of Kandahar, Lashkar Gah and Qalat, serving nearly a million local residents. USAID constructed the Kajakai Hydropower Station at the toe of the dam in the early 1970s to include two 16.5-megawatt generating units. In September 2003, the two existing hydro turbines failed within weeks of one another. Berger mobilized hydropower experts in October 2003 to perform a condition assessment and recommend corrective action. The assessment determined the rehabilitation needs for the facility, including new turbine runners for Units 1 and 3, a new shaft for Unit 1 and installation of Unit 2, which was not provided during the initial construction.

The rehabilitation of Units 1 and 3 were completed and re-commissioned by September 2005, and together generate more than 500 megawatt hours daily. Unit 2 is presently nearing completion, and new governors, excitation, control systems and station transformers are currently being installed at all three units. All facility upgrades are expected to be finished by Spring 2008. With the new Unit 2 and the refurbished Units 1 and 3, Kajakai will have an output of 51.5 megawatts, an upgrade of 400 percent.

In August 2006, in association with Black & Veatch, Berger was awarded the Afghanistan Infrastructure and Rehabilitation (AIRP) Program by USAID. The $1.4 billion contract extends through 2011 and will initially focus on rehabilitating power transmission networks and generation capacity, as well as upgrading vital transportation links throughout Afghanistan. The joint venture will also assist in strengthening the institutions and operating capabilities of a number of Afghanistan government ministries and agencies.

Under AIRP, work will continue at the Kajakai Hydropower Station and include the completion of spillway gates that will allow the capacity of the reservoir to nearly double to three billion gallons, thus enabling the installation of a second 100-megawatt powerhouse. Additionally, the Team will provide new power transmission and distribution infrastructure; address rehabilitation needs at Darunta Hydropower Plant; provide diesel power plant O&M services at the Kabul Northwest Power Plant, as well as four generating stations in the southwest; and develop a gas-fired power generating plant in Shiberghan in north-central Afghanistan.

United States
The Berger Group is currently in the final year of a second five-year contract awarded by FERC to prepare EISs and environmental assessments for hydropower facilities throughout the United States. This challenging contract requires the mobilization of a nationwide technical and environmental staff to undertake the demanding analysis while carefully interacting with applicants, agencies and a variety of public interest groups. An integral part of Berger's services include analyzing issues and concerns associated with more than 100 existing and proposed hydropower projects, including multiple projects located on the same or adjacent rivers. Berger staff has also identified and recommended protective mitigation and enhancement measures to reduce impacts to acceptable levels. Additionally, the Team's tasks have included evaluating engineering and economic issues relating to water quality and hydrology, the demand for project power and the balancing of power generation needs against environmental concerns. Finally, Berger staff is providing support to the Division of Hydropower Administration and Compliance by conducting annual inspections of approximately 40 hydropower facilities to ensure that each project is operated in compliance with the terms of its FERC license.

Hells Canyon

The 1,036-mile-long Snake River originates near the Continental Divide in Yellowstone National Park in Wyoming, flows through southern Idaho and finally joins the majestic Columbia River near Pasco, Washington. The picturesque Hells Canyon, the deepest river gorge in North America, is located along the Snake River. Idaho Power owns and operates 17 hydropower facilities on the river and its tributaries, including the Hells Canyon Project, which comprises the Brownlee, Oxbow and Hells Canyon hydropower developments, with a combined generating capacity of 1,167 megawatts. As part of the nationwide hydropower contract with FERC, Berger was retained to develop the EIS for Idaho Power to obtain a new license and continue operating the three facilities.

While Idaho Power's relicensing efforts followed the traditional process, it also included a carefully structured public involvement program in the early stages. A group of agencies, tribes, conservation groups, customers and other stakeholders collaborated to frame public issues, resolve controversies and involve interested parties to ensure the application would address stakeholder concerns and needs and provide guidance for the EIS. During the pre-application process, Berger represented FERC at the collaborative team meetings, as well as in three working

groups that addressed issues related to aquatic resources, terrestrial resources and recreation. The chief functions of the working groups were to develop and recommend protection, mitigation and enhancement measures for Idaho Power to include in their license application.

Once the license application was filed, the Berger team identified issues to be addressed in the EIS; participated in scoping meetings designed to elicit public input on the critical issues; and reviewed the license application to determine whether it met regulatory requirements and provided adequate information on which to base the EIS. In preparing the EIS, Berger addressed issues related to the quantity and timing of river flows, water quality, sediment transport and deposition, anadromous and resident fish conditions, wildlife habitat, land-use and aesthetic resources, socioeconomics, cultural resources and recreation. In addition to evaluating Idaho Power's proposed operations and essential environmental protection, mitigation and enhancement measures in the EIS, Berger evaluated environmental measures recommended by agencies, tribes and other participants, as well as concepts developed by Berger and FERC staff, to ensure that a new license issued to Idaho Power would be, in FERC's view, best adapted to a comprehensive plan for improving the waterway.

McCloud-Pit

The McCloud-Pit Hydroelectric Project is located on the McCloud and Pit Rivers along the Cascade Mountain Range in Shasta County, California. The project has a combined capacity of 364 megawatts and an average annual generation of 1,542 gigawatt hours. Project features include the 520-acre McCloud Reservoir and Tunnel; the 500-acre Iron Canyon Reservoir and Tunnel; James B. Black Penstock and Powerhouse; Pits 6 and 7 Reservoirs and Powerhouses; Pit 7 Afterbay; and transmission lines associated with all three powerhouses.

The Berger Group, in association with Stillwater Sciences, was retained by Pacific Gas and Electric Company to relicense the facility under a five-year program. The work will be implemented in three phases, including study plan development; preparation and filing of the application for the new license; and post-filing support through license issuance. The Team will be responsible for developing and implementing study plans to provide necessary information on the terrestrial and aquatic ecosystems, soils and geology, cultural resources, recreation and land use. The information, along with other available data, will be used to prepare the application for a new license to be filed at FERC in 2009, respond to any post-filing requests for additional information and obtain a 401 Water Quality Certificate.

Baker River

The Baker River Hydroelectric Project is located in the Cascade Mountain Range, northeast of Concrete, Washington. The 170-megawatt project includes two hydroelectric facilities, Upper and Lower Baker Dams, currently operated for power generation, flood control and recreation. Upper Baker Dam, located on Baker Lake, is approximately 312 feet high and 1,200 feet wide. Water for hydropower is conveyed from the intake at the dam via two 320-foot-long penstocks to the powerhouse and empties into Lake Shannon. Lower Baker Dam is approximately 285 feet high and 550 feet wide. Water is conveyed from the intake at the dam via a 586-foot-long penstock to the powerhouse, empties into a tailrace and then flows nearly a mile to the Skagit River.

The Berger Group, in association with Meridian Environmental, Inc., was retained by Puget Sound Energy (PSE) to review the Initial Consultation Document, which contains detailed information on the project facilities, current mode of operation and existing environmental impacts, and to prepare the preliminary draft environmental assessment and the application for relicensing the facilities. Berger experts were members of the Baker Solution Team and participated in a number of technical working groups, addressing aquatic, cultural, historical, wildlife, terrestrial, recreational and aesthetic issues. Berger experts also provided key stakeholders, tribes, non-governmental organizations and government agencies with guidance and insight into the FERC relicensing process, and developed a comprehensive set of detailed proposals for submission to FERC. Additionally, the Team assisted PSE obtain a water quality certification from the Washington Department of Ecology for relicensing, including permitting for the construction of a new floating surface collector for improved fish passage.