Lake level economic impact study released

Citing $40M in lost revenue, Lakes Commission argues for earlier refill, later drawdown on LPO

By Zach Hagadone
Reader Staff

A long-awaited analysis of how seasonal pool fluctuations on Lake Pend Oreille affect the area’s economy has been released after more than a year in the works, showing “significant” losses to local businesses big and small.

According to the report, conducted by University of Idaho researchers and with joint funding from the U of I and Lakes Commission, raising the lake to full pool in late-June to early-July and drawing it down in mid-September contributes to the area missing out on an estimated $40 million each year, as visitors and residents alike are hampered in their use the lake due to low water levels.

Lakes Commission Chair Ford Elsaesser presented the report to the Idaho Senate Resources and Environment Committee in Boise on Feb. 18, testifying that because of its fluctuating water level, Pend Oreille is unique among regional lakes in experiencing a shorter recreational season.

“The economic harm is kind of across the board, and what it has essentially done is create larger shoulder seasons between skiing and the lake in our part of the world — more than anywhere else in the region,” he added, describing negative impacts to service and hospitality sectors, as well as marinas and other businesses and workers who rely on lake tourism and traffic for their seasonal livelihoods.

Based on the study results, Elsaesser said the goal is to convince the U.S. Army Corps of Engineers — which manages the lake level through Albeni Falls Dam — that the spring refill should begin in May and the drawdown be delayed to October.

“Once people have confidence that they’re going to have a full recreational season on Lake Pend Oreille, everything you can think of, from camping along the lake or intensive fishing … all of that makes May, late-September, early-October, all of June available,” he told committee members. “We wanted to be parallel to the other lakes we have in North Idaho.”

Work on the economic analysis began in earnest in January 2025, championed at the state level by Dist. 1 Sen. Jim Woodward, R-Sagle, and Dist. 1A Rep. Mark Sauter, R-Sandpoint, who joined with the Lakes Commission to seek support from the University of Idaho Business School, which secured funding from the U of I President’s Office to conduct the research.      

While Elsaesser said such a study has been “a dream of ours on the Lakes Commission for literally more than a decade,” it gained steam after the delay in raising lake levels in 2024 following the discovery of faulty gates at Albeni Falls Dam.

In addition to high-level economic analysis, the study also drew from survey responses from lake users, residents, business owners and other stakeholders to inform how lake level fluctuations — and the potential uncertainty surrounding when and by how much those levels will rise or fall — affect everything from recreational and sport access to employment and even housing.

“Where we’re headed is we want to make Lake Pend Oreille of greater value and greater use to the people of Idaho,” Woodward told the Reader, noting that this year’s budget bill for the Corps of Engineers includes language to coordinate with the state on lake level operations specifically related to Lake Pend Oreille. 

“That’s really significant,” he said.

However, Sen. Doug Okuniewicz, R-Hayden, wondered aloud “how much difference” the study could make, adding that the Corps hasn’t been responsive so far.

“It’s a never-ending battle with them,” Elsaesser said. “They tend to simply hide behind the potential flood risk no matter how low the runoff is, no matter how severe the drought is. … We’re hoping that this might get us at least closer to trying to get some equitable treatment.”

Okuniewicz worried that if the Corps decides to alter dam operations in order to lengthen the recreational season it could lead to over-use and crowding on the water.

“I don’t go to Coeur d’Alene Lake anymore because it’s just way too busy,” he said. “[I’d] hate to see Lake Pend Oreille go that way.”

Elsaesser said that “there’s always plenty of lake” to go around, even during the height of summer. Meanwhile, the Lakes Commission announcement of the study underscored that dam operations are intended to serve “multiple equal purposes,” including power generation, flood control, recreation, navigation, and fish and wildlife conservation.

Regardless, the Lakes Commission stated, “The longstanding operations at Albeni Falls Dam limit recreational access due to a deep winter drawdown and a late summer pool.”

Elsaesser reminded senators that the state of Idaho holds the surface water rights through the Governor’s Office, which “gives us a voice in the dam,” he said.

“We feel [those rights] are being essentially abused and misappropriated in the sense that we don’t get a full lake until very late in the summer,” Elsaesser said.

“The Corps will always advance safer flood control, but the primary reasons for the drawdown in the fall and the draw-up in the spring is to really benefit power generation and the downstream demands that will always be present,” he added. “This would be the ideal year for them to start giving us a full season, and not just be beholden to the downstream demands for power, the downstream demand for fish, etc. …

“We’re trying to get the Corps of Engineers to see reason — that’s all we want them to do,” he said.

For more information and to access the Lake Pend Oreille economic impact study, go to lakescommission.org.