[Federal Register Volume 60, Number 53 (Monday, March 20, 1995)]
[Notices]
[Pages 14754-14755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6799]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Central Valley Project, Proposed Non-Federal Funding to Perform
Rewindings With Uprates on Three Generators at the Shasta Dam
Powerplant
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of intent to enter into a contract, along with the
Department of the Interior, Bureau of Reclamation (Reclamation), to
obtain non-Federal funding from Central Valley Project power
contractors for maintenance and replacement work, to be performed by
Reclamation, on the generators at Shasta Dam Powerplant.
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SUMMARY: The Western Area Power Administration (Western) provides
notice that non-Federal funding will be obtained for Reclamation to
perform rewindings with uprates on three generators at the Shasta Dam
Powerplant in order to ensure system reliability. Several Central
Valley Project (CVP) power contractors have voluntarily agreed to
jointly provide financing to complete the proposed work. All CVP power
contractors will be considered if they meet the conditions specified
under ``Selection Criteria'' herein. A list of the CVP power
contractors providing funding (Funding Entities) may be requested from
Western at the address or telephone provided under ``For Further
Information Contact'' herein.
This notice presents background project information and outlines
the terms of the proposed financing agreement and the projected work.
EFFECTIVE DATE: April 19, 1995.
FOR FURTHER INFORMATION CONTACT: Ms. Zola M. Jackson, Assistant Area
Manager for Power Marketing, Sacramento Area Office, Western Area Power
Administration, 1825 Bell Street, Suite 105, Sacramento, CA 95825,
(916) 649-4421. [[Page 14755]]
SUPPLEMENTARY INFORMATION:
Background
The Shasta Dam Powerplant is located on the Sacramento River near
the city of Redding, California. The powerplant is a feature of the
Shasta Division, CVP, and was authorized to be built by the Emergency
Relief Appropriations Act of 1935 (49 Stat. 115). Reclamation operates
the 578-megawatt (MW) powerplant at Shasta Dam, and Western markets
that power pursuant to section 302 of the Department of Energy
Organization Act (42 U.S.C. 7152).
Reclamation is responsible for planning, designing, constructing,
operating, and maintaining electrical power generation facilities as
authorized by Congress. Reclamation also is responsible for allocating
all costs to water and power users for Reclamation project purposes and
determining the reimbursable costs to be recovered by revenues. Western
is responsible for marketing the power, constructing transmission
facilities, making transmission arrangements, assuring recovery of all
costs assigned to power for repayment, and for setting power and
transmission rates. Reclamation and Western will work together in the
negotiation and execution of contracts for the financing arrangements
for the proposed project. Reclamation will be responsible for the
negotiation and execution of the construction contracts.
The Shasta Dam Powerplant has a total of seven generator units.
There are five main generators and two station service generators. Main
generator units 1 and 2 were uprated to 125 MW in 1978-80. Main
generator units 3, 4, and 5 were rewound between 1969 and 1974 and
modified in 1981. Due to age and deterioration, the core temperatures
of main generator units 3, 4, and 5 have been steadily increasing for
the last decade, threatening the reliability of these units. Should one
or more of the units fail, the loss of power generation could increase
power costs and decrease power revenues.
Financing Proposal
Funds for constructing the rewinds with uprates at the Shasta Dam
Powerplant will be made available to Reclamation under provision of the
Act of March 4, 1921 (41 Stat. 1404). Western, the Funding Entities,
and Reclamation will enter into a contract to assist in obtaining the
funding necessary for Reclamation to perform the maintenance work at
Shasta Dam Powerplant. The Funding Entities will advance approximately
$20 million, the estimated total cost of the work to be performed, into
an escrow account. Reclamation will withdraw the funds for the material
and related expenses of the rewinds with uprates. The facilities will
continue to be owned and operated by the United States as a feature of
the CVP.
A repayment agreement is proposed between the United States and the
Funding Entities. The Funding Entities will be reimbursed for funds
provided, with interest, through credits on their CVP power bills. All
costs will be recovered through sales of power and water.
Description of Proposed Work to be Performed by Reclamation
To ensure CVP system reliability, increase operational flexibility,
and increase the nameplate rating of Shasta main generator units 3, 4,
and 5, Reclamation will install new cores, windings, and excitation
systems in addition to reinsulating or replacing the field windings.
Reclamation will also install new thrust bearings to enable a faster
unit start-up response time after emergency shutdowns.
Energy and Capacity Gains
As a result of uprating main generator units 3, 4, and 5, there
will be an estimated total gain of approximately 47 MW of capacity
available when Shasta Lake storage level is above 3.6 million acre-feet
(MAF). Below 3.6 MAF, the total peaking capability decreases and is
reduced to 0 MW when the level falls below 2.3 MAF. Under high water
conditions and maximum operational capability, some additional energy
may be produced. This could amount to an estimated average annual
increase of 12 gigawatthours. All additional energy and capacity
resulting from the uprates will be incorporated into the CVP system to
support project use and CVP power sales. CVP capacity may be sold as
excess, when available.
Treatment of Excess Capacity
If and when Western determines excess capacity is available for
sale, the Funding Entities will be given first right of refusal for the
purchase of excess capacity from the CVP system. Such right shall
terminate on December 31, 2004. Such right of first refusal shall be
limited to excess capacity purchases for a period of months in the year
and to an amount of excess capacity equivalent to the amount resulting
from the uprates of main generator units 3, 4, and 5, and only if
Shasta Lake storage level is above 3.0 MAF at the time of the offer for
sale. The determination of the amount of excess capacity available,
period of availability, and terms of an offer will be at Western's
discretion. Funding Entities must meet the marketing criteria for the
excess capacity sale at the time of the offer.
Selection Criteria for Funding Entities
Western determined that the following criteria must be met by
entities financing the rewinds with uprates at Shasta Dam Powerplant.
1. Funding must be advanced on behalf of an existing CVP firm power
contractor who is a ``preference entity'' under Reclamation law and
pertinent statutes, particularly section 9(c) of the Reclamation
Project Act of 1939 (43 U.S.C. 485h(c)).
2. Entities must voluntarily agree to fund the proposal under the
terms and conditions offered by Western and be able to receive
reimbursement of funds advanced on their CVP power bills.
3. Entities must demonstrate their ability to provide funds for the
proposed work.
4. Entities must be willing to advance the funding in a manner
acceptable to Reclamation.
Environmental Compliance: The National Environmental Policy Act
(NEPA) of 1969 (42 U.S.C 4321 et seq.) and implementing regulations
issued by the Council on Environmental Quality (40 CFR 1500-1508)
require that the environmental effects of agency decisions be
studied and considered by decision makers. For the construction
work to be performed by Reclamation, Reclamation completed a
Categorical Exclusion on August 5, 1994. This work will not change
the operating parameters at Shasta Dam Powerplant.
In addition, the environmental effects associated with the
marketing of power generated at various facilities, including the
Shasta Dam Powerplant, were examined under Western's 1994 Power
Marketing Plan Environmental Assessment, as revised in August 1992 and
for which a FONSI was issued on September 21, 1992; therefore, no
further environmental review under NEPA will be required.
Issued in Golden, Colorado, March 6, 1995.
J. M. Shafer,
Administrator.
[FR Doc. 95-6799 Filed 3-17-95; 8:45 am]
BILLING CODE 6450-01-P
