[Federal Register Volume 59, Number 233 (Tuesday, December 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29964]
[[Page Unknown]]
[Federal Register: December 6, 1994]
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DEPARTMENT OF ENERGY
Alaska Power Administration
Snettisham Project; Wholesale Power Rates
AGENCY: Alaska Power Administration, Department of Energy
ACTION: Notice of proposed rate adjustment for the Snettisham Project,
notice of public forum and opportunity for review and comment.
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SUMMARY: Alaska Power Administration (APA) is proposing to adjust the
rates for the Snettisham Project. The present rate of 32.1 mills per
kilowatthour is insufficient to meet the Snettisham Project's repayment
criteria. APA proposes to raise the rate for firm energy to 34.4 mills
per kilowatthour beginning May 1, 1995, for a period of up to five
years. Rates for non-firm energy deliveries under both the oil
displacement and wood-heat displacement programs would not change. The
final proposal may differ from the present. The proposed rates will be
submitted to the Deputy Secretary of Energy for interim approval and to
the Federal Energy Regulatory Commission for review and final approval.
DATES: Written comments will be considered on or before March 7, 1995.
ADDRESSES: Written comments should be submitted to Mr. Lloyd A. Linke,
Alaska Power Administration, 2770 Sherwood Lane, Suite 2B, Juneau,
Alaska 99801.
FOR FURTHER INFORMATION CONTACT: Mr. Lloyd A. Linke, Director, Power
Division, Alaska Power Administration, 2770 Sherwood Lane, Suite 2B,
Juneau, Alaska 99801, (907) 586-7405.
SUPPLEMENTARY INFORMATION: The proposed rates apply for power sold from
the Snettisham Hydroelectric Project to the electric utility serving
the Juneau area and a State-owned hatchery at the Snettisham Project.
Details of the proposed rates, including supporting studies, are
available for inspection at Alaska Power Administration, 2770 Sherwood
Lane, Suite 2B, Juneau, Alaska. A public information and comment forum
is scheduled to be held January 12, 1995, at 7:00 PM, in Room 320 of
the Super 8 Motel, 2295 Trout Street, Juneau, Alaska. APA is requesting
that the parties interested in attending the public information and
comment forum notify APA of this intent in writing by January 5, 1995.
If APA has not received any written notices of intent to attend the
forum the APA Administrator will cancel the forum, as allowed in 10 CFR
903.15(c) and 10 CFR 903.16(c). Authorities for the proposed rate
action are the 1962 Flood Control Act (Public Law 87-874), the Water
Resource Development Act (Public Law 94-587) and the Department of
Energy Organization Act (Public Law 95-91). Alaska Power Administration
is developing these rates in accordance with DOE financial reporting
policies, procedures and methodology (DOE Policy RA 6120.2 [September
20, 1979]), and the procedures for public participation in rate
adjustments found in 10 CFR Part 903 (1987) as amended.
The present rates went into effect in October 1991. Since the last
rate action, sales have been significantly lower than projected and the
actual cost of the Crater Lake Addition to the Snettisham Project was
higher than estimated. The proposed rate results in a seven percent
rate increase. This is below the rate of inflation from 1991 to 1994.
Firm sales from the Snettisham Project were six percent (53 GWh)
less than projected in August of 1991. Non-firm sales were down nine
percent (4 GWh). The reduced sales resulted in revenues that were four
percent ($1.1 million) less that forecasted in August 1991. The actual
cost, to date, for the Crater Lake Addition is 7 percent ($5 million)
higher than estimated in August of 1991.
The sales forecast APA used in August of 1991 was based on loads
during a historically normal weather year. APA has based its new sales
forecast on a more conservative approach using warmer than normal
weather load patterns. This results in lower sales projections due to
reduced heating loads. APA believes this will result in more stabile
rates for the Snettisham Project.
The Administration continues to advocate divestiture of APA, and a
legislative proposal to authorize the divestiture is under
Congressional consideration. This proposed rate action continues
present rate policies under existing law.
ENVIRONMENTAL IMPACT: The proposed rate action will have no
significant environmental impact within the meaning of the National
Environmental Policy Act of 1969. The proposed action meets the
requirements of a categorical exclusion as defined in 40 CFR 1508.4 and
is listed as a categorical exclusion for DOE in 10 CFR 1021 Appendix
B4.3. An Environmental Assessment and an Environmental Impact Statement
is not required.
Issued at Juneau, Alaska, November 22, 1994.
Michael A. Deihl,
Administrator.
[FR Doc. 94-29964 Filed 12-5-94; 8:45 am]
BILLING CODE 6450-01-P
