[Federal Register Volume 59, Number 5 (Friday, January 7, 1994)]
[Notices]
[Pages 1013-1014]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-382]


[[Page Unknown]]

[Federal Register: January 7, 1994]


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DEPARTMENT OF ENERGY
Alaska Power Administration

 

Snettisham Surplus Power Marketing Plan

AGENCY: Alaska Power Administration, Department of Energy.

ACTION: Draft Surplus Power Marketing Plan.

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SUMMARY: Alaska Power Administration (APA) is publishing its Draft 
Surplus Power Marketing Plan--Snettisham Project to start the process 
to establish allocations of surplus energy and surplus power sales 
contracts for the Snettisham Project. APA is publishing the draft plan 
to provide an opportunity for public review and comment. The Surplus 
Power Marketing Plan is fully compatible with the Department of Energy 
legislative proposal on APA divestiture which was submitted to Congress 
in November 1993.

DATES: Written comments must be submitted on or before February 7, 
1994.
    A public information and comment forum will be held January 18, 
1994, at 7 p.m., at the office of Alaska Power Administration, 2770 
Sherwood Lane, suite #2B, Juneau, Alaska.

ADDRESSES: Written comments should be submitted to Mr. Michael A. 
Deihl, Alaska Power Administration, 2770 Sherwood Lane, suite #2B, 
Juneau, AK 99801.

FOR FURTHER INFORMATION CONTACT: Mr. Scott Willis, Alaska Power 
Administration, P.O. Box 020889, Juneau, AK 99802-0889, (907) 586-6963.

SUPPLEMENTARY INFORMATION:

Draft Surplus Marketing Plan--Snettisham Project

A. Background

    Alaska Power Administration (APA) has established new long-term 
power sales agreements for the Snettisham Project. As part of the 
process of establishing new contracts, APA published a Marketing Plan 
for the Snettisham Project (57 FR 53320). According to the provisions 
in the Marketing Plan, if there was additional energy left over after 
the initial allocations, it would be offered for allocation in another 
round. The initial allocations are complete, a contract for firm energy 
deliveries has been negotiated and there is surplus energy available 
from the Snettisham Project. An Environmental Assessment was prepared 
for these power marketing activities and a Finding of No Significant 
Impact was issued by the Department of Energy.

B. Conditions for Allocation

    Allocations of surplus energy will be made in accordance with the 
provisions of the Marketing Plan. These provisions include:
    1. No energy will be allocated for export outside the Juneau market 
area (that is, the Alaska Electric Light & Power (AEL&P) service 
territory) without firm plans and commitment to finance and build the 
necessary transmission facilities.
    2. In allocating surplus energy, APA will give preference to public 
bodies and cooperatives who conduct utility-type operations.
    3. Surplus energy not allocated to preference customers may be 
available to serve major industrial loads. For this marketing plan, a 
major industrial load is one which is not currently a firm customer of 
AEL&P, does not conduct utility-type operations, and which has the 
capability to meet its own energy requirement in the absence of 
Snettisham energy. Major industrial loads are encouraged to work 
directly with AEL&P so that AEL&P can request an allocation to serve 
their needs. In this case, allocations will be made to AEL&P. APA will 
consider requests for direct service of major industrial loads only if 
it is demonstrated that service through the utility is infeasible.

C. Contract Provisions

    Entities receiving an allocation of Snettisham resources will be 
offered an electric service contract which will include the following 
provisions:
    1. Contracts will be for a period of 20 years or less beginning at 
contract execution. Contracts for less than 20 years may include an 
option to extend the period up to a total length of 20 years. Contracts 
will be compatible with the proposed APA divestiture. Contracts will 
contain language guaranteeing the continuation of the allocation after 
divestiture.
    2. Surplus energy will be marketed at the Snettisham firm rate. The 
rate is presently 3.21 cents/kwh and is subject to periodic review and 
adjustment.
    3. The contractor will be required to sign a contract within 270 
days of APA's letter granting an allocation.
    4. In order to reserve the allocation, the contractor will be 
required to deposit 10% of the expected cost of the following year's 
energy with APA. If the allocated energy is taken during the year the 
deposit will be credited toward the cost of the energy. If the 
allocation is not completely taken the deposit is non-refundable. In 
any year, energy reserved in this way but not taken by the contractor 
may be marketed by APA. In any case, an applicant must be ready, 
willing, and able to take initial delivery of power by January 1, 1997 
or the allocation will be withdrawn and the energy reallocated.
    5. If the contractor has not committed to a 20-year contract, the 
contractor will be required to pay a one-time, non-refundable payment 
within 30 days after contract execution. This payment will be based on 
3% of the average estimated annual energy delivery during the years 
between the end of the contract period and the 20 year period times 
each year less than 20 years.

D. Amount Available for Allocation

    Firm energy output (energy available 9 years out of 10) from the 
Snettisham Project is estimated at 275 gwh/year. Secondary energy is 
estimated to vary from 0 to 100 gwh/year and average around 50 gwh/
year. This invitation is for requests for allocation for energy that is 
surplus to the needs of the Juneau community. An estimate of that need 
is shown in the table below. Applicants must be aware that these are 
only estimates and that the amount of energy required by the community 
may vary from these projections. In the event that there are competing 
requests from qualified applicants, the surplus energy will be divided 
equally among the applicants up to their maximum request. 

------------------------------------------------------------------------
                                                   Estimated            
                                                   community            
                   Water year                        energy    Estimated
                                                    surplus    available
                                                  requirement           
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1994............................................        232          93 
1995............................................        242          83 
1996............................................        250          75 
1997............................................        255          70 
1998............................................        258          67 
1999............................................        259          66 
2000............................................        260          65 
2001............................................        263          62 
2002............................................        264          61 
2003............................................        266          59 
2004............................................        267          58 
2005............................................        270          55 
2006............................................        271          54 
2007............................................        274          51 
2008............................................        275          50 
2009............................................        277          48 
2010............................................        278          47 
2011............................................        281          44 
2012............................................        282          43 
2013............................................        285          40 
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    Issued at Juneau, Alaska; December 13, 1993.
Michael A. Deihl,
Administrator.
[FR Doc. 94-382 Filed 1-6-94; 8:45 am]
BILLING CODE 6450-01-P