Connecticut/In the Region - Water Power Meets Resistance - NYTimes.com ANDREW PEKLO III lives almost on top of the Pomperaug River, in an old woolen mill that dates to the 1800s. The mill hovers at the river's edge, but Mr. Peklo's property extends out into the water, encompassing a curved dam that creates a cascade just below the Pomperaug Road Bridge. A furniture designer and architect, he has reclaimed the three-floor mill building as both living space and workshop. Now he wants to rejuvenate the dam as well, by using its waterfall to power a hydroelectric turbine. The Federal Energy Regulatory Commission is reviewing an application from Mr. Peklo to install a turbine beneath his home. The turbine would generate about 300,000 kilowatt hours a year - enough to power 30 to 35 houses of average size. The estimated cost of the project is roughly $400,000. "I'm going to generate power, use what I can, and sell the rest to finance the project," Mr. Peklo explained over coffee in his loftlike living space. It's not just benefiting me - it benefits the grid. But Mr. Peklo's neighbors on Pomperaug Road, in what is now a residential neighborhood, are not interested in reviving the property's long-buried industrial roots. They have peppered the commission with letters accusing Mr. Peklo of keeping them uninformed about his plan until now, even as he has been communicating with the regulators for years. The hydroelectric project's impact on the waterfall is of particular concern. The proposal calls for water to be periodically redirected toward the turbine, causing the falls to stop running over the dam about half the time. Neighbors say that restraining the falls will harm their property values. "My decision to locate to this neighborhood was based on the proximity to the Pomperaug falls and the natural beauty that makes this area a desirable place to live," wrote Tom Greto, a Pomperaug Road resident and real estate agent, in comments submitted to the commission. Other neighbors noted that Mr. Peklo himself had been instrumental, many years back, in persuading the town to designate their street as a "scenic road." The falls, they say, were a contributing factor. But Mr. Peklo argues that the scenic-road designation was not meant to "prevent people from using their property." He views the partial loss of the waterfall as a reasonable tradeoff for harnessing clean, renewable energy. "The dam was built to make power," Mr. Peklo said. It wasn't built to look nice. Federal regulators have scheduled a visit to the mill site for Jan. 18, to be followed by an informational meeting at the Woodbury Senior Center. Both events are open to the public. A 30-day comment period will ensue. Mr. Peklo bought the mill property for $60,000 in 1980. The building was in significant disrepair, but over time he improved it enough to make it a focal point of the riverside neighborhood. He lives on the top floor, above his workshop, with his wife, Abby, and their young son, Zeke. The open living area has a central kitchen and a corner fireplace. Mr. Peklo built the high-backed leather and wood chairs that encircle the dining table. He has applied to the energy commission for a "small hydro exemption," a licensing process applicable to projects under a certain size, in which approvals are granted in perpetuity rather than for a period of years, according to Mary O'Driscoll, the commission's director of media relations. The proposed project would be "run of the river," meaning it would operate without altering the quantity of water, thereby reducing the likelihood of disruption to fish and wildlife. No water will be stored, and the height of the dam will remain as it is, Mr. Peklo said. After consulting with state and federal environmental authorities, he has also agreed to build a fish ladder, a passageway that allows migrating fish to get over or around a dam. "That's what I consider my giveback," he said. But Lee Sherwood, who lives just up the road, said he believed Mr. Peklo was motivated solely by money and "spite." Almost a decade ago, Mr. Peklo proposed to build a single-family home on land he owns across the street. The town's inland wetlands board rejected the proposal, which Mr. Sherwood himself vehemently opposed. Mr. Peklo appealed, but the court upheld the board's decision. "A big part of this now is, he wants to take away from the serenity of the neighborhood," Mr. Sherwood said, "and give a little bit of payback to the town." Mr. Peklo characterized that assertion as nonsense. His interest in hydroelectricity began with his purchase of the mill, and his interactions with the commission date to 1983, he said. He also denied a neighborhood rumor that once the turbine is in place, he and his family plan to move into a former church that he is renovating in Bethlehem, Conn. He said he was renovating the church property for sale. Mr. Peklo expressed the hope that the public meetings with energy commission officials would help clear up any other "misinformation." He regrets the discord, but believes himself well within his rights as owner of the dam and the water rights. "I don't inhibit my neighbors from making money on their chosen occupations," he said. And quite frankly, if I pull this off, I'm entitled to make money.