[Federal Register Volume 59, Number 5 (Friday, January 7, 1994)]
[Notices]
[Pages 1013-1014]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-382]
[[Page Unknown]]
[Federal Register: January 7, 1994]
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DEPARTMENT OF ENERGY
Alaska Power Administration
Snettisham Surplus Power Marketing Plan
AGENCY: Alaska Power Administration, Department of Energy.
ACTION: Draft Surplus Power Marketing Plan.
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SUMMARY: Alaska Power Administration (APA) is publishing its Draft
Surplus Power Marketing Plan--Snettisham Project to start the process
to establish allocations of surplus energy and surplus power sales
contracts for the Snettisham Project. APA is publishing the draft plan
to provide an opportunity for public review and comment. The Surplus
Power Marketing Plan is fully compatible with the Department of Energy
legislative proposal on APA divestiture which was submitted to Congress
in November 1993.
DATES: Written comments must be submitted on or before February 7,
1994.
A public information and comment forum will be held January 18,
1994, at 7 p.m., at the office of Alaska Power Administration, 2770
Sherwood Lane, suite #2B, Juneau, Alaska.
ADDRESSES: Written comments should be submitted to Mr. Michael A.
Deihl, Alaska Power Administration, 2770 Sherwood Lane, suite #2B,
Juneau, AK 99801.
FOR FURTHER INFORMATION CONTACT: Mr. Scott Willis, Alaska Power
Administration, P.O. Box 020889, Juneau, AK 99802-0889, (907) 586-6963.
SUPPLEMENTARY INFORMATION:
Draft Surplus Marketing Plan--Snettisham Project
A. Background
Alaska Power Administration (APA) has established new long-term
power sales agreements for the Snettisham Project. As part of the
process of establishing new contracts, APA published a Marketing Plan
for the Snettisham Project (57 FR 53320). According to the provisions
in the Marketing Plan, if there was additional energy left over after
the initial allocations, it would be offered for allocation in another
round. The initial allocations are complete, a contract for firm energy
deliveries has been negotiated and there is surplus energy available
from the Snettisham Project. An Environmental Assessment was prepared
for these power marketing activities and a Finding of No Significant
Impact was issued by the Department of Energy.
B. Conditions for Allocation
Allocations of surplus energy will be made in accordance with the
provisions of the Marketing Plan. These provisions include:
1. No energy will be allocated for export outside the Juneau market
area (that is, the Alaska Electric Light & Power (AEL&P) service
territory) without firm plans and commitment to finance and build the
necessary transmission facilities.
2. In allocating surplus energy, APA will give preference to public
bodies and cooperatives who conduct utility-type operations.
3. Surplus energy not allocated to preference customers may be
available to serve major industrial loads. For this marketing plan, a
major industrial load is one which is not currently a firm customer of
AEL&P, does not conduct utility-type operations, and which has the
capability to meet its own energy requirement in the absence of
Snettisham energy. Major industrial loads are encouraged to work
directly with AEL&P so that AEL&P can request an allocation to serve
their needs. In this case, allocations will be made to AEL&P. APA will
consider requests for direct service of major industrial loads only if
it is demonstrated that service through the utility is infeasible.
C. Contract Provisions
Entities receiving an allocation of Snettisham resources will be
offered an electric service contract which will include the following
provisions:
1. Contracts will be for a period of 20 years or less beginning at
contract execution. Contracts for less than 20 years may include an
option to extend the period up to a total length of 20 years. Contracts
will be compatible with the proposed APA divestiture. Contracts will
contain language guaranteeing the continuation of the allocation after
divestiture.
2. Surplus energy will be marketed at the Snettisham firm rate. The
rate is presently 3.21 cents/kwh and is subject to periodic review and
adjustment.
3. The contractor will be required to sign a contract within 270
days of APA's letter granting an allocation.
4. In order to reserve the allocation, the contractor will be
required to deposit 10% of the expected cost of the following year's
energy with APA. If the allocated energy is taken during the year the
deposit will be credited toward the cost of the energy. If the
allocation is not completely taken the deposit is non-refundable. In
any year, energy reserved in this way but not taken by the contractor
may be marketed by APA. In any case, an applicant must be ready,
willing, and able to take initial delivery of power by January 1, 1997
or the allocation will be withdrawn and the energy reallocated.
5. If the contractor has not committed to a 20-year contract, the
contractor will be required to pay a one-time, non-refundable payment
within 30 days after contract execution. This payment will be based on
3% of the average estimated annual energy delivery during the years
between the end of the contract period and the 20 year period times
each year less than 20 years.
D. Amount Available for Allocation
Firm energy output (energy available 9 years out of 10) from the
Snettisham Project is estimated at 275 gwh/year. Secondary energy is
estimated to vary from 0 to 100 gwh/year and average around 50 gwh/
year. This invitation is for requests for allocation for energy that is
surplus to the needs of the Juneau community. An estimate of that need
is shown in the table below. Applicants must be aware that these are
only estimates and that the amount of energy required by the community
may vary from these projections. In the event that there are competing
requests from qualified applicants, the surplus energy will be divided
equally among the applicants up to their maximum request.
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Estimated
community
Water year energy Estimated
surplus available
requirement
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1994............................................ 232 93
1995............................................ 242 83
1996............................................ 250 75
1997............................................ 255 70
1998............................................ 258 67
1999............................................ 259 66
2000............................................ 260 65
2001............................................ 263 62
2002............................................ 264 61
2003............................................ 266 59
2004............................................ 267 58
2005............................................ 270 55
2006............................................ 271 54
2007............................................ 274 51
2008............................................ 275 50
2009............................................ 277 48
2010............................................ 278 47
2011............................................ 281 44
2012............................................ 282 43
2013............................................ 285 40
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Issued at Juneau, Alaska; December 13, 1993.
Michael A. Deihl,
Administrator.
[FR Doc. 94-382 Filed 1-6-94; 8:45 am]
BILLING CODE 6450-01-P
