95-13682. Snettisham ProjectNotice of Order Confirming and Approving an Adjustment of Power Rates on an Interim Basis  

  • [Federal Register Volume 60, Number 107 (Monday, June 5, 1995)]
    [Notices]
    [Pages 29581-29584]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-13682]
    
    
    
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    DEPARTMENT OF ENERGY
    Alaska Power Administration
    
    
    Snettisham Project--Notice of Order Confirming and Approving an 
    Adjustment of Power Rates on an Interim Basis
    
    AGENCY: Alaska Power Administration, DOE.
    
    ACTION: Notice of adjustment of power rates--Snettisham Project, rate 
    schedules SN-F-5, SN-NF-8, SN-NF-9, and SN-NF-10.
    
    -----------------------------------------------------------------------
    
    SUMMARY: Notice is hereby given that the Deputy Secretary approved on 
    April 28, 1995, Rate Order No. APA 13 which adjusts the present power 
    rates for the Snettisham Project. This is an interim rate action 
    effective May 1, 1995, for a period of 12 months, unless extended, and 
    is subject to final confirmation and approval by the Federal Energy 
    Regulatory Commission (FERC) for a period of up to five years.
    
    FOR FURTHER INFORMATION CONTACT:
    Mr. Lloyd Linke, Director, Power Division, Alaska Power Administration, 
    2770 Sherwood Lane, Suite 2B, Juneau, AK 99801-8545, (907) 586-7405.
    
    SUPPLEMENTARY INFORMATION: On December 6, 1994, the Alaska Power 
    Administration (APA) published a Federal Register notice of its 
    intention to adjust current power rates for the Snettisham Project for 
    a period of up to five years. The present rates, as approved by FERC at 
    57 FERC para.62,235, are 32.1 mills per kilowatthour for firm energy. 
    There is a variable rate for based on the cost of heating oil of 27.1 
    mills per kilowatthour for non-firm energy based on energy used in 
    place of wood burning. These rates were approved by FERC Order, Docket 
    No. EF92-1021-000 issued December 23, 1991, for the period October 1, 
    1991, through September 30, 1996. Based on the annual certification of 
    rates, APA now proposes that rates be adjusted beginning May 1, 1995, 
    for a period of up to five years. The new rates would be 34.7 mills per 
    kilowatthour for firm energy, with the non-firm rates to remain the 
    same. The Federal Register notice also indicated APA's intention to 
    seek interim approval of the proposed rates by the Deputy Secretary of 
    Energy pending final confirmation and approval of the rates by FERC.
        Following review of APA's proposal within the Department of Energy, 
    on April 28, 1995, I approved on an interim basis Rate Order No. APA-13 
    which adjusts the present Snettisham Rates for period of up to five 
    years beginning May 1, 1995, subject to final confirmation and approval 
    by FERC.
    
        [[Page 29582]] Issued at Washington, DC, April 28, 1995.
    Bill White,
    Deputy Secretary.
    Order Confirming and Approving Power Rates on an Interim Basis
    
    April 28, 1995.
        In the matter: of Alaska Power Administration--Snettisham 
    Project Power Rates; Rate Order No. APA-13.
    
        This is an interim rate action subject to review and approval of 
    the Federal Energy Regulatory Commission. It is made pursuant to the 
    authorities delegated in DOE Delegation Order No. 0204-108, Amendment 
    No. 3 to that Order.
    
    Background
    
        Section 204 of the 1962 Flood Control Act (76 Stat. 1194), 
    authorizes the Crater-Long Lakes Division of the Snettisham Project and 
    provides authority and general criteria for marketing Snettisham 
    project power. Section 201 of the 1976 Water Resources Development Act, 
    Public Law 94-587, provides additional criteria. The DOE Organization 
    Act (91 Stat. 565) assigns responsibilities for Snettisham to the 
    Secretary of Energy acting by and through the APA Administrator.
        The Snettisham Project was constructed in two phases. The Long Lake 
    phase went into commercial service in 1975. The Crater Lake phase went 
    into commercial service in 1991. Section 201 of the 1976 Water Resource 
    Development Act, Public Law 94-587, set a repayment period of 60 years 
    for the Long Lake portion of the project and fixed a schedule for its 
    repayment. The Crater Lake investment carries a 50 year repayment 
    period.
        The Snettisham Project is a single purpose project comprised of two 
    separate lake taps, power tunnels and penstocks; a single underground 
    powerplant housing three units with a combined capacity of 78,210 kw; 
    41 miles of 138 kv overhead transmission line and three miles of 
    submarine cable; and a single substation serving the Juneau area. A 
    small amount of energy is sold to the State of Alaska for operation of 
    a fish hatchery at Snettisham. Rate Schedules SN-F-4, SN-NF-5, SN-NF-6, 
    SN-NF-7 now in effect for the Snettisham Project were confirmed and 
    approved by order of the Federal Energy Regulatory Commission, Docket 
    No. EF92-1021-000 issued December 23, 1991 for a period ending 
    September 30, 1996.
    
    Discussion
    
    System Repayment
    
        Studies prepared by the Alaska Power Administration, as required by 
    DOE Policy No. RA 6120.2, demonstrate that the present firm rate must 
    be increased to provide sufficient revenue to meet requirements for the 
    rate period and meet project repayment criteria by the end of the 
    repayment period. On that basis, the Alaska Power Administration 
    proposes an adjustment of the firm rate for a period not to exceed five 
    years. The Administrator of Alaska Power Administration has certified 
    that the new rates are consistent with applicable law and that they are 
    the lowest possible rates to customers consistent with sound business 
    principles.
    
    Environmental Impact
    
        Alaska Power Administration has concluded with Departmental 
    concurrence that this rate action will have no significant 
    environmental impact within the meaning of the Environmental Policy Act 
    of 1969. It is the Alaska Power Administration's determination that the 
    rate adjustment does not exceed the rate of inflation and therefore is 
    categorically excluded from the NEPA process as defined in 40 CFR 
    1508.4 and is listed as a categorical exclusion for DOE in 10 CER 1021, 
    Appendix B4.3. The proposed action is not a major Federal action for 
    which preparation of an Environmental Impact Statement is required.
    
    Availability of Information
    
        Information regarding this rate action, including studies and other 
    supporting material, is available for public review in the officers of 
    the Alaska Power Administration, 2770 Sherwood Lane, Suite 2B, Juneau, 
    Alaska.
    
    Public Notice and Comment
    
        Opportunity for public review and comment on the rate action was 
    announced by notice in the Federal Register on December 6, 1994, and in 
    a paid advertisement of a newspaper in the market area on December 22 
    and 23, 1994. The notice provided for a comment period of 90 days 
    following publication in the Federal Register. An informational meeting 
    was held with an advisory committee to the Juneau City Assembly. A new 
    article on the proposed rate action was published in the Juneau Empire 
    on February 7, 1995. A public information and comment forum was 
    scheduled in Juneau, Alaska on January 12, 1995, with public comment 
    period ending March 7, 1995. The public information and comment forum 
    was canceled on January 6, 1995, due to lack of interest, in accordance 
    with 10 CFR 903.15(b), 10 CFR 903.15(c) and the Alaska Power 
    Administration's prior notices of the public forum.
    
    Submission to FERC
    
        The rates herein confirmed, approved, and placed in effect on an 
    interim basis, together with supporting documents, will be submitted 
    promptly to the Federal Energy Regulatory Commission (FERC) for 
    confirmation and approval on a final basis.
    
    Order
    
        In view of the foregoing and pursuant to the authority delegated to 
    me by the Secretary of Energy, I hereby confirm and approve on an 
    interim basis, effective May 1, 1995, attached Wholesale Power Rate 
    Schedules SN-F-5 SN-NF-8, SN-NF-9 and SN-NF-10. These rate schedules 
    shall remain in effect on an interim basis for a period of 12 months 
    unless such period is extended or until the Federal Energy Regulatory 
    Commission confirms and approves them or substitute rate schedules on a 
    final basis.
    
        Issued at Washington, DC, this 28 day of April 1995.
    Bill White,
    Deputy Secretary.
    [Schedule SN-NF-5]
    
    United States Department of Energy Alaska Power Administration
    
    Snettisham Project, Alaska
    
    Schedule of Rates for Wholesale Firm Power Service
    
    Effective
    
        May 1, 1995 for a maximum of five years.
    
    Available
    
        In the area served by the Snettisham Project, Alaska.
    
    Applicable
    
        To wholesale power customers for general power service.
    
    Character and Conditions of Service
    
        Alternating current, sixty cycles, three-phase, delivered and 
    metered at the low-voltage side of substation.
    
    Monthly Rate
    
        Capacity charge: None.
        Energy charge: Firm energy at 34.7 mills per kilowatt-hour.
    
    Minimum Annual Capacity Charge
    
        None.
    
    Billing Demand
    
        Not applicable. [[Page 29583]] 
    
    Adjustments
    
        For transformer losses: If delivery is made at the high-voltage 
    side of the customer's substation but metered at the low-voltage side, 
    the meter readings will be increased 2 percent to compensate for 
    transformer losses.
    
    [Schedule SN-NF-8]
    
    United States Department of Energy Alaska Power Administration
    
    Snettisham Project, Alaska
    
    Schedule of Rates for Interruptible Power Service
    
    Effective
    
        May 1, 1995 for a maximum of five years.
    
    Available
    
        In the area served by the Smettisham Project, Alaska.
    
    Applicable
    
        To wholesale power customers for resale to their large commercial 
    and government dual-fuel customers. Availability of energy will be 
    determined by Alaska Power Administration.
    
    Character and Conditions of Service
    
        Alernating current, sixty cycles, three-phase, delivered and 
    metered at the low-voltage side of substation.
    
    Monthly Rate
    
        Capacity charge: None.
        Energy charge: Variable rate pegged to price of hearing oil 
    purchased by the State of Alaska or City and Borough of Juneau, 
    whichever is lower. Refer to Table 1 listing oil prices and comparable 
    wholesale rates.
    
    Minimum Annual Capacity Charge
    
        None.
    
    Billing Demand
    
        No applicable.
    
    Adjustments
    
        For transformer losses: If delivery is made at the high-voltage 
    side of the customer's substation but metered at the low-voltage side, 
    the meter readings will be increased 2 percent to compensate for 
    transformer losses.
    Table 1
    [GRAPHIC][TIFF OMITTED]TN05JN95.076
    
    
    
    ------------------------------------------------------------------------
                              Wholesale rate (cents/  Wholesale rate (mills/
        Fuel oil ($/gal)               kwh)                    kwh)         
    ------------------------------------------------------------------------
    0.50...................               0.84                      8.4     
    0.52...................               0.87                      8.7     
    0.54...................               0.90                      9.0     
    0.56...................               0.94                      9.4     
    0.58...................               0.97                      9.7     
    0.60...................               1.00                     10.0     
    0.62...................               1.03                     10.3     
    0.64...................               1.06                     10.6     
    0.66...................               1.09                     10.9     
    0.68...................               1.13                     11.3     
    0.70...................               1.16                     11.6     
    0.72...................               1.19                     11.9     
    0.74...................               1.22                     12.2     
    0.76...................               1.25                     12.5     
    0.78...................               1.29                     12.9     
    0.80...................               1.32                     13.2     
    0.82...................               1.35                     13.5     
    0.84...................               1.38                     13.8     
    0.86...................               1.41                     14.1     
    0.88...................               1.44                     14.4     
    0.90...................               1.48                     14.8     
    0.92...................               1.51                     15.1     
    0.94...................               1.54                     15.4     
    0.96...................               1.57                     15.7     
    ------------------------------------------------------------------------
    
    United States Department of Energy Alaska Power Administration
    
    Snettisham Project Alaska
    
    Schedule of Rates for Interruptible Power Service
    
    Effective
    
        May 1, 1995 for a maximum of five years.
    
    Available
    
        In the area served by the Snettisham Project, Alaska.
    
    Applicable
    
        To wholesale power customers for resale to their residential dual-
    fuel customers. Availability of energy will be determined by Alaska 
    Power Administration.
    
    Character and Conditions of Service
    
        Alternating current, sixty cycles, three-phase, delivered and 
    metered at the low-voltage side of substation.
    
    Monthly Rate
    
        Capacity charge: None.
        Energy charge: Variable rate pegged to price of heating oil 
    purchase by the State of Alaska. Refer to Table 1 listing oil prices 
    and comparable wholesale rates.
    
    Minimum Annual Capacity Charge
    
        None.
    
    Billing Demand
    
        Not applicable.
    
    Adjustments
    
        For transformer losses: If delivery is made at the high-voltage 
    side of the customer's substation but metered at the low-voltage side, 
    the meter readings will be increased 2 percent to compensate for 
    transformer losses.
    Table 1
    
          
    [GRAPHIC][TIFF OMITTED]TN05JN95.077
    
    
    
    ------------------------------------------------------------------------
                              Wholesale rate (cents/  Wholesale rate (mills/
        Fuel oil ($/gal)               kwh)                    kwh)         
    ------------------------------------------------------------------------
    0.50...................               0.84                      8.4     
    0.52...................               0.87                      8.7     
    0.54...................               0.90                      9.0     
    0.56...................               0.94                      9.4     
    0.58...................               0.97                      9.7     
    0.60...................               1.00                     10.0     
    0.62...................               1.03                     10.3     
    0.64...................               1.06                     10.6     
    0.66...................               1.09                     10.9     
    0.68...................               1.13                     11.3     
    0.70...................               1.16                     11.6     
    0.72...................               1.19                     11.9     
    0.74...................               1.22                     12.2     
    0.76...................               1.25                     12.5     
    0.78...................               1.29                     12.9     
    0.80...................               1.32                     13.2     
    0.82...................               1.35                     13.5     
    0.84...................               1.38                     13.8     
    0.86...................               1.41                     14.1     
    0.88...................               1.44                     14.4     
    0.90...................               1.48                     14.8     
    0.92...................               1.51                     15.1     
    0.94...................               1.54                     15.4     
    0.96...................               1.57                     15.7     
    ------------------------------------------------------------------------
    
    [Schedule SN-NF-10]
    
    United States Department of Energy Alaska Power Administration
    
    Snettisham Project, Alaska
    
    Schedule of Rates for Non-Firm Surplus Power Service
    
    Effective
    
        May 1, 1995 for a maximum of five years.
    
    Available
    
        In the area served by the Snettisham Project, Alaska.
    
    Applicable
    
        To wholesale power customers who have established a rate schedule 
    providing an incentive retail rate for electric heat customers who also 
    have a wood stove, for increased use of energy for each month when 
    compared to the same month in the preceding year. Availability of 
    surplus energy will be determined by Alaska Power 
    Administration. [[Page 29584]] 
    
    Character and Conditions of Service
    
        Alternating current, sixty cycles, three-phase, delivered and 
    metered at the low-voltage side of substation.
    
    Monthly Rate
    
        Capacity charge: None.
        Energy charge: 21.7 mills per kilowatt-hour.
    
    Minimum Annual Capacity Charge
    
        None.
    
    Billing Demand
    
        Not applicable.
    
    Adjustments
    
        For transformer losses: If delivery is made at the high-voltage 
    side of the customer's substation but metered at the low-voltage side, 
    the meter readings will be increased 2 percent to compensate for 
    transformer losses.
    
    [FR Doc. 95-13682 Filed 6-2-95; 8:45 am]
    BILLING CODE 6450-01-M
    
    

Document Information

Published:
06/05/1995
Department:
Alaska Power Administration
Entry Type:
Notice
Action:
Notice of adjustment of power rates--Snettisham Project, rate schedules SN-F-5, SN-NF-8, SN-NF-9, and SN-NF-10.
Document Number:
95-13682
Pages:
29581-29584 (4 pages)
PDF File:
95-13682.pdf