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June 17, 2011

Court Rules Against Starrett In Hydroelectricty Case

A federal panel of judges has ruled against Athol-based L.S. Starrett in a case involving the company's plans to turn on a hyrdroelectric dam located near its headquarters on the Millers River.

Starrett has invested about $1.5 million to upgrade the dam during the past three years. The system is ready to be turned on, but an environmental group appealed to the U.S. Fish and Wildlife Service to stop the project from going live. The group cited concerns over wildlife in the Millers River.

The U.S. Fish and Wildlife Service then went to the Federal Energy Regulatory Commission and said that Starrett needed a permit before turning on the turbines. FERC ruled that Starrett indeed needed such a permit.

Starrett officials argued that a permit was not necessary because the dam had been operational in the past. It also said upgrading the dam to meet the requirements of the permit would cost them between $100,000 and $180,000.

Starrett appealed FERC's ruling to the U.S. Court of Appeals First Circuit in Boston.

The three-judge panel in Boston issued a decision June 15 affirming FERC's ruling. The judges said that Starrett had already upgraded the dam, increasing its capacity, thereby bringing the project under FERC's purview.

Steve Walsh, a senior vice president for Starrett, said the company is not ready to comment on the ruling and whether it plans to appeal the decision.

Read the decision here.

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