[Federal Register Volume 59, Number 84 (Tuesday, May 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10576]


[[Page Unknown]]

[Federal Register: May 3, 1994]


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DEPARTMENT OF ENERGY
Alaska Power Administration

 

Proposed Rate Adjustment for Eklutna Project

AGENCY: Alaska Power Administration, Department of Energy.

ACTION: Notice of proposed rate adjustment for Eklutna Project, notice 
of public forum and opportunity for review and comment.

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SUMMARY: Alaska Power Administration (APA) is proposing to adjust the 
rates for the Eklutna Project. Rates of 17 mills per kilowatthour for 
firm energy, 10 mills per kilowatthour for non-firm energy and .3 mills 
per kilowatthour for wheeling expire September 30, 1994. APA proposes 
to raise the rate for firm energy to 18.9 mills per kilowatthour 
beginning October 1, 1994 for a period of up to five years. Rates for 
non-firm energy and wheeling would remain the same. APA will finalize 
the proposal giving full consideration to comments received. The final 
proposal may differ from the present. The proposed rates will be 
submitted to the Deputy Secretary of Energy for interim approval and to 
the Federal Energy Regulatory Commission for review and final approval.

DATES: Written comments will be considered for 90 days from the date of 
this publication.

ADDRESSES: Written comments should be submitted to Mr. Lloyd A. Linke, 
Alaska Power Administration, 2770 Sherwood Lane, Suite 2B, Juneau, 
Alaska 99801.

FOR FURTHER INFORMATION CONTACT: Mr. Lloyd A. Linke, Director, Power 
Division, Alaska Power Administration, 2770 Sherwood Lane, Suite 2B, 
Juneau, AK 99802, (907) 586-7405.

SUPPLEMENTARY INFORMATION: The proposed rates apply for power sold from 
the Eklutna Hydroelectric Project to three electric utilities serving 
the Anchorage and Matanuska Valley areas of Alaska.
    Details of the proposed rates, including supporting studies, are 
available for inspection at Alaska Power Administration, 2770 Sherwood 
Lane, Suite 2B, Juneau, Alaska; and the Eklutna Project Office, Mile 
4.0, Old Glenn Highway, Palmer, Alaska.
    A public information and comment forum is scheduled to be held June 
14, 1994, at 7 p.m., in the public conference room of the Loussac 
Library, 3600 Denali, Anchorage, Alaska. APA is requesting that the 
parties interested in attending the public information and comment 
forum notify APA of this intent in writing by June 7, 1994. If APA has 
not received any written notices of intent to attend the forum the APA 
Administrator will cancel the forum, as allowed in 10 CFR 903.15(c) and 
10 CFR 903.16(c).
    Authorities for the proposed rate action are the Eklutna Project 
Act of July 31, 1950 (64 Stat. 382, as amended) and the Department of 
Energy Organization Act (Pub. L. 95-91). Alaska Power Administration is 
developing these rates in accordance with DOE financial reporting 
policies, procedures and methodology (DOE Policy RA 6120.2 [September 
20, 1979]), and the procedures for public participation in rate 
adjustments found in 10 CFR Part 903 (1987) as amended.
    The present rates went into effect in October 1990. APA has repaid 
over 75% of the project investment. Since the last rate action 
Operation and Maintenance (O&M) costs have increased. The major 
contributors to this increase are the addition of the Government's 
unfunded liability for the Civil Service Retirement System in the 
repayment studies, and an increase in the number of staff dealing with 
environmental compliance issues. The proposed rate results in an 11% 
rate increase. This is below the rate of inflation from 1990 to 1994. 
APA has notified its customers that a rate was being developed. One of 
the customers has asked that APA look at the increased O&M costs and to 
verify the need for the increases. APA is in the process of doing this 
and will include the results of this evaluation in the final rate 
proposal.
    Given the age of the Eklutna Project, APA expects sizeable 
replacement costs over the next several years. These costs have been 
included in the repayment study supporting the proposed rates.
    The Administration continues to advocate divestiture of APA, and a 
legislative proposal to authorize the divestiture is under 
Congressional consideration. This proposed rate action continues 
present rate policies under existing law.

Environmental Impact

    The proposed rate action will have no significant environmental 
impact within the meaning of the National Environmental Policy Act of 
1969. The proposed action meets the requirements of a categorical 
exclusion as defined in 40 CFR 1508.4 and is listed as a categorical 
exclusion for DOE in 10 CFR 1021, Appendix B4.3. An Environmental 
Assessment and an Environmental Impact Statement is not required.

    Issued at Juneau, Alaska, April 21, 1994.
Michael A. Deihl,
Administrator.
[FR Doc. 94-10576 Filed 5-2-94; 8:45 am]
BILLING CODE 6450-01-P