In mid August the High Rock Lake Association petitioned Alcoa to consider the extremely low High Rock Lake inflows; and we recommended Alcoa immediately invoke the 900 cfs minimum discharge permitted by FERC under approved Drought Management procedures. We also recommended an earlier date for a planned Drought Management Team conference call. The Drought Management Team consists of representatives of Alcoa, Duke Energy, High Rock Lake Association, NCDENR, SCDHEC , SCDNR, and the US Fish and Wildlife Service.

The Team held a conference call on August 22, 2007 to discuss the drought, which is progressively worsening in North Carolina. Due to extremely low inflows to High Rock Lake, Alcoa has been unable to maintain desired lake levels, and during this call Alcoa asked the Team to approve reduction of discharges from Falls Reservoir to a weekly average of 900 CFS. Alcoa further explained they propose a discharge of 900 cfs form Badin Lake and a discharge of 700 cfs from High Rock Lake; until such time as rainfall in the region allows return to normal operations.

Alcoa advised that these reductions would produce expected Labor Day lake elevations of 6.5 ft below full at High Rock, and 4.75 ft. below full at Badin Lake.

On August 29, 2007 FERC officially endorsed the proposed flow reductions, and Alcoa implemented the reductions. As a result, the rate of depletion has slowed at High Rock, and storage at Badin Lake is being used to augment downstream flows.

The FERC order stays in effect during September. At the end of the month the Team will make new recommendations based on then current drought conditions.

The High Rock Lake Association is appreciative of the cooperation of Alcoa, Duke, and the governmental agencies that worked with us to conserve water in High Rock. The huge difference in water levels now compared to similar drought conditions in 2002 is testimony to the efforts by HRLA and many others to increase the awareness of the tremendous harm caused by depletion of water in High Rock Lake.