High Mountain Sheep Dam (Abridged)

Abstract:
This case examines the decision facing the Federal Power Commission (FPC) of whether to license hydroelectric development of Idaho's Snake River. After providing background on the area's wilderness value and on the FPC, it describes a series of administrative and judicial proceedings stretching from the mid-1950s through 1971. The student is then presented with a set of quantitative questions designed to show the economic and environmental costs and benefits of the project as well as the relevance of cost-benefit analysis to the decision. The sequel describes the final FPC decision to grant the license and the countervailing congressional action, which resulted in the Snake River being declared a National Recreation Area.

Learning Objective:
The case may be used to show both the relation of economic to environmental concerns and how to apply cost-benefit analysis to a specific problem. The answer sheet provides answers (and explanations) to the exercises contained in the case, as well as a model memorandum from a "staff analyst" (the student) to the hearing examiner on the question of whether the economic benefits justify the environmental losses from damming the Snake River. An abridged version of the case simply sketching the political and administrative background and highlighting the cost-benefit issues is also available.