94-8361. The Eugene Water and Electric Board Proposed Billing Credits Generation Agreement

[Federal Register Volume 59, Number 67 (Thursday, April 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8361]


[[Page Unknown]]

[Federal Register: April 7, 1994]


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DEPARTMENT OF ENERGY
Bonneville Power Administration

 

The Eugene Water and Electric Board Proposed Billing Credits 
Generation Agreement

AGENCY: Bonneville Power Administration (BPA), DOE.

ACTION: Notice of intent. BPA announces its intention to sign a billing 
credits generation agreement for the Wauna Cogeneration Project located 
in Clatskanie, Oregon.

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SUMMARY: BPA has previously signed other Billing Credits Generation 
Agreements, in addition to the contract described in this Notice. The 
Wauna Cogeneration Project is located at the James River Wauna Oregon 
mill. The size of the Project is based on thermally matching the mill's 
steam needs for the pulp and paper making process. The generator will 
have an approximate nameplate rating of 36 megawatts. The incremental 
fuel used for electrical generation is natural gas. The backpressure 
turbine installation will augment existing pressure reducing valves. 
The expected annual energy production is estimated at 26.4 average 
megawatts beginning in January 1996. The Project will be interconnected 
to the mill electrical system at 13.8 KV.
    BPA, pursuant to its Billing Credits Policy, as amended August 30, 
1984, (49 FR 34395), and revised on January 29, 1993, (58 FR 37918) has 
negotiated this Billing Credits Generation Agreement with Eugene Water 
and Electric Board (EWEB) for the Wauna Cogeneration Project.
    Responsible Official: Mr. George Bell, Lower Columbia Area Office, 
is the official responsible for EWEB's Billing Credits contract and the 
Administrative Record.

DATES: BPA will receive comments on the proposed Billing Credits 
Generation Agreement for 30 days, after which time BPA may execute the 
contract. Payment or credits will not be made or granted until 90 days 
after BPA executes the Billing Credits Generation Agreement.

FOR FURTHER INFORMATION CONTACT: For a copy of the EWEB Billing Credits 
Generation Agreement, or the Administrative Record, please contact the 
Public Involvement Manager, Bonneville Power Administration, P.O. Box 
12999, Portland, Oregon 97212. Telephone numbers, voice/TTY, for the 
Public Involvement Office are [phone] in Portland, or toll-free 
[phone]. Information may also be obtained from:

Mr. George E. Bell, Lower Columbia Area Manager, Suite 243, 1500 NE. 
Irving Street, Portland, Oregon 97232, [phone].
Mr. Wayne R. Lee, Upper Columbia Area Manager, Suite 500, Crescent 
Court, 707 Main, Spokane, Washington 99201, [phone].
Mr. George E. Eskridge, Montana District Manager, 800 Kensington, 
Missoula, Montana 59801, [phone].
Mr. Terence G. Esvelt, Puget Sound Area Manager, Suite 400, 201 Queen 
Avenue North, Seattle, Washington 98109-1030, [phone].
Mr. Thomas Wagenhoffer, Snake River Area Manager, 1520 Kelly Place, 
Walla Walla, Washington 99362, [phone].
Ms. C. Clark Leone, Idaho Falls District Manager, 1527 Hollipark Drive, 
Idaho Falls, Idaho 83401, [phone].
Mr. Jim Normandeau, Boise District Manager, Room 450, 304 North Eighth 
Street, Boise, Idaho 83702, [phone].
Mr. Robert Laffel, Eugene District Manager, 86000 Franklin Blvd., 
Eugene, Oregon 97405, [phone].
Ms. Carol S. Fleischman, Spokane District Manager, Crescent Court, 
suite 500, 707 Main, Spokane, Washington 99201, [phone].

SUPPLEMENTARY INFORMATION: The Administrative Record, available for 
public review, contains background on BPA's Billing Credits Policy and 
a Record of Decision for the Wauna Cogeneration Project and 
environmental considerations.

I. Background

    BPA is a self-financing power marketing agency with the United 
States Department of Energy. BPA was established by the Bonneville 
Project Act of 1937, 16 U.S.C. 832 et seq., to market wholesale power 
from Bonneville Dam and to construct power lines for the transmission 
of this power to load centers in the Northwest. BPA sells wholesale 
electric power and energy to 126 utilities, 13 direct service 
industrial customers and several government agencies.
    The Pacific Northwest Electric Power Planning and Conservation Act 
(Northwest Power Act) directs BPA to serve the net power requirements 
of any electric utility requesting service, and to serve existing DSIs 
in the Pacific Northwest. 16 U.S.C. 839c(b)(1) and (d). Although BPA 
cannot own or construct electric generating facilities, the Northwest 
Power Act directs BPA to acquire rights to the output or capability of 
electric power resources to serve increased customer requirements. See 
16 U.S.C. 839d(h). Billing Credits may be adjustments to customers' 
power bills or equivalent cash payments. Resources eligible for Billing 
Credits include conservation and generation.
    Specific requirements for resources and the amount BPA can pay for 
these resources are outlined in the Northwest Power Act and BPA's 
Billing Credits Policy.
    BPA's Billing Credits Policy interprets the Billing Credits 
provisions in the Northwest Power Act, prescribes criteria for customer 
and resource eligibility, and establishes procedures for granting 
Billing Credits.

II. Description of the Generation Proposal

    BPA proposes to issue the Billing Credits as a method to facilitate 
Project construction pending the issuance of a ruling by the Internal 
Revenue Service under section 9(f) of the Northwest Power Act relating 
to the portion of the Project's output that will be furnished to 
nongovernmental persons and the extent to which the private business 
use test of section 141(b) of the Internal Revenue Code of 1986, as 
amended, will be met. Upon issuance of a ruling favorable to EWEB, the 
Billing Credits will terminate in favor of a negotiated Power Purchase 
Agreement with similar terms and conditions for all parties.
    This project meets the qualifications for Billing Credits, and BPA 
has completed its obligations under the National Environmental Policy 
Act. EWEB will comply with all applicable environmental requirements in 
the construction of the project and during the operation phase.

III. Methodology for Determining Generation Billing Credits

    The payment for Billing Credits for EWEB will be calculated and 
paid monthly as follows:
    EWEB is a Computed Requirements Customer under its Power Sales 
Contract with BPA, the monthly Billing Credits will be the lesser of 
the Adjusted Alternative Cost or Net Cost multiplied by the monthly 
amounts of Assured Energy Capability of the Billing Credits Resource, 
less the amount of Priority Firm Rate dollars EWEB avoids paying as a 
result of the Billing Credits Resource. There is no annual true-up 
because EWEB is required to maintain the Assured Energy Capability for 
the Billing Credits Resource, as it must do for all its firm resources 
under the Power Sales Contract.

IV. Materials Available

    Copies of the Billing Credits Policy and the Administrative Record 
are available from BPA's Public Involvement Office. Refer to the ``For 
Further Information Contact'' section of this notice.

    Issued in Portland, Oregon, on March 24, 1994.
Randall W. Hardy,
Administrator.
[FR Doc. 94-8361 Filed 4-6-94; 8:45 am]
BILLING CODE 6450-01-P