[Federal Register Volume 64, Number 64 (Monday, April 5, 1999)]
[Notices]
[Pages 16432-16433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8287]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
[FE Docket Nos. 50849-1613-07-82 and 50849-1613-08-82]
Application for Rescission of a Prohibition Order Issued Pursuant
to the Powerplant and Industrial Fuel Use Act of 1978 Montaup Electric
Company and Somerset Power LLC
AGENCY: Office of Fossil Energy, DOE.
ACTION: Notice of Application.
-----------------------------------------------------------------------
SUMMARY: Montaup Electric Company (Montaup) and Somerset Power LLC
(Somerset) have requested that DOE rescind a prohibition order issued
for Boiler Nos. 7 and 8 (Unit's 5 and 6, respectively) at Montaup's
Somerset Generating Station pursuant to the Powerplant and Industrial
Fuel Use Act of 1978 (FUA).
DATES: Comments, protests or requests to intervene must be submitted on
or before April 20, 1999.
ADDRESSES: Comments, protests or requests to intervene should be
addressed as follows: Office of Coal & Power Import and Export (FE-27),
Office of Fossil Energy, U.S. Department of Energy, 1000 Independence
Avenue, SW, Washington, DC 20585-0350.
FOR FURTHER INFORMATION CONTACT: Xavier Puslowski (Program Office) 202-
586-4708 or Michael T. Skinker (Program Attorney) 202-586-6667.
SUPPLEMENTARY INFORMATION: On March 25, 1999, Montaup and Somerset
filed a
[[Page 16433]]
joint application with the Office of Fossil Energy (FE) of the
Department of Energy for rescission of a Prohibition Order issued in
Docket Nos. 50849-1613-07-82 and 50849-1613-08-82 on January 27, 1986
(51 FR 4421, February 4, 1986), pursuant to section 301(c) of FUA and
10 CFR 504.8. The order took effect on April 7, 1986 and prohibited the
use of petroleum or natural gas as a primary energy source in Boiler
Nos. 7 and 8 (Unit Nos. 5 and 6, respectively) at Montaup's Somerset
Generating Station located in Somerset, Massachusetts, in excess of the
amounts equivalent to operation of each of the boilers using petroleum
or natural gas for thirty (30) percent of their respective annual
operating hours.
On October 15, 1998, Montaup and NRG Energy, Inc. (NRG) signed an
Asset Purchase Agreement to sell the Somerset Generating Station to
NRG. NRG has assigned its rights under that agreement to Somerset Power
LLC, which will acquire the Somerset Generating Station and associated
property. Transfer of ownership of the station is scheduled to occur by
April 1, 1999. Therefore, Montaup and Somerset Power LLC have filed
this application jointly.
Pursuant to 10 CFR 501.102(b), Montaup and Somerset filed this
application based on a substantial change in the circumstances upon
which the Prohibition Order was originally issued. The applicants note
a provision of the existing order which states:
``* * * changes in the * * * relative economics of coal * * * as
a fuel source * * * will be deemed to constitute ``significantly
changed circumstances'' pursuant to 10 CFR 501.102(b) sufficient to
provide a basis for rescission or modification of the specific
prohibitions contained in this Order.''
Montaup and Somerset claim that the price of oil is now
significantly below the price of coal currently used in the Somerset
Generating Station and that the continued use of coal would impair the
facility's competitive position within the electric power market. The
applicants also state that the deregulation of natural gas prices since
the issuance of the original Prohibition Order and the prominence
gained by natural gas as a viable alternative fuel source make the
continued prohibition or limitation on the use of natural gas serve no
just purpose. The applicants also note that the use of natural gas can
offer significant environmental benefits over the burning of coal in
the Somerset facility. For these reasons, Montaup and Somerset request
that DOE rescind the Prohibition Order issued for the Somerset
Generating Station.
Procedural Matters
Any party or person desiring to be heard or to protest this
application for rescission should file five copies of any comments,
protests or petitions to intervene at the address provided above.
Filings should be clearly marked with the above docket numbers. Any
request for a public hearing must be made within the public comment
period. In making its decision regarding the requested rescission
action, DOE will consider all relevant information submitted or
otherwise available to it.
The public file containing a copy of this rescission application is
available, upon request, at the address above.
DOE has granted the applicant's request for an expedited notice and
comment period of fifteen (15) days due to the absence of any comments,
protests or requests for a hearing having been filed in the original
proceeding.
Issued in Washington, DC, on March 30, 1999.
Anthony J. Como,
Manager, Electric Power Regulation, Office of Coal & Power Im/Ex,
Office of Fossil Energy.
[FR Doc. 99-8287 Filed 4-2-99; 8:45 am]
BILLING CODE 6450-01-P
