[Federal Register Volume 59, Number 131 (Monday, July 11, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16708]
[[Page Unknown]]
[Federal Register: July 11, 1994]
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DEPARTMENT OF ENERGY
Southeastern Power Administration
Proposed Power Marketing Policy for Georgia-Alabama-South
Carolina System of Projects
AGENCY: Southeastern Power Administration (Southeastern), DOE.
ACTION: Notice.
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SUMMARY: Southeastern has developed the following proposed power
marketing policy for its Georgia-Alabama-South Carolina System of
Projects pursuant to Notice published in the Federal Register of
September 8, 1993, 58 FR 47273, and in accordance with Procedure for
Public Participation in the Formulation of Marketing Policy published
July 6, 1978, 43 FR 29186. In the Notice, Southeastern proposed a
System Policy which would deal with the complete Georgia-Alabama-South
Carolina System of Projects including systems both east and west of the
Savannah River. Based on analysis of proposals and recommendations
received, consultations with interested parties and further studies and
considerations, Southeastern decided to develop a policy applying to
the system effective with the expiration of existing contracts, or as
soon thereafter as is practical. The policy, when finalized, will
constitute written guidelines for future disposition of power from the
system. The policy is developed under authority of Section 5 of the
Flood Control Act of 1944, 16 U.S.C. 825s, and Section 302(a) of the
Department of Energy Organization Act of 1977, 42 U.S.C. 7152.
Interested persons are invited to submit written comments directly to
Southeastern and/or present written or oral views, or data at the
public comment forums on the proposed policy.
DATES: Written comments are due on or before September 16, 1994. Public
comment forums will be held in Atlanta, Georgia on August 29, 1994, and
in Columbia, South Carolina on August 31, 1994.
ADDRESSES: Five copies of written comments should be submitted to:
Administrator, Southeastern Power Administration, Department of Energy,
2 South Public Square, Samuel Elbert Building, Elberton, Georgia 30635.
The public comment forums will each begin at 10:30 a.m. at the
following locations: August 29, 1994, Sheraton Gateway Hotel, 1900
Sullivan Road, Atlanta, Georgia 30337; August 31, 1994, Sheraton Hotel
& Conference Center, 2100 Bush River Road, Columbia, South Carolina
29210.
FOR FURTHER INFORMATION CONTACT:
Mr. John A. McAllister, Jr., Administrator, Southeastern Power
Administration, Department of Energy, 2 South Public Square, Samuel
Elbert Building, Elberton, Georgia 30635, 706-283-9911.
SUPPLEMENTARY INFORMATION: Southeastern received only one response to
its September 8, 1993, solicitation for proposed and recommendations
contained in its Notice of Intent to Formulate Power Marketing Policy.
This response was carefully considered as were facts gathered from
those who consulted with Southeastern.
Major issues raised by the proposed policy are determination of
marketing area, allocation of power among area customers, handling of
energy at pump-storage installations, utilization of area utility
systems for power integration, firming, wheeling, exchange and other
essential relationships, wholesale rates, handling of resale
relationships, and conservation measures. An Environmental Assessment
and Finding of No Significant Impact have been prepared indicating that
the proposed power marketing policy will not have a significant effect
upon the quality of the human environment. A copy may be obtained by
contacting the Administrator at the address or telephone number listed
above.
The public comment forums will not be adjudicative in nature. The
Administrator shall act as or appoint a forum chairman. At the start of
the forums the chairman shall briefly explain procedures and rules.
Customers and the public shall be allowed to make oral statements and
comments, introduce relevant documents, and ask questions regarding the
proposed power marketing policy of Southeastern representatives at the
forum. Persons requesting to speak shall notify Southeastern at which
forum or forums they desire to speak at least 3 days before the
particular forum is scheduled so that a list of forum participants can
be prepared. If necessary, the chairman may establish time limitations
for oral presentations by these participants to assure that all who
register to speak shall have an opportunity to do so. Others will be
permitted to speak if time allows. Those unable to speak because of
time limitations and others who so desire may submit written comments.
The chairman and Southeastern representatives may question forum
participants and, the chairman, at his discretion, may permit other
participants a like privilege. Questions not answered by Southeastern
representatives during a forum shall be specifically identified by the
chairman in the transcript and shall be subsequently responded to by
Southeastern in writing. All documents introduced and written answers
to questions shall be available for inspection and copying at
Southeastern headquarters in accordance with the Freedom of Information
Act. Forum proceedings shall be transcribed. Copies of the transcript
may be purchased from the reporter.
Customers and the public may consult or file written comments and
questions with Southeastern regarding the proposed marketing policy on
or before September 16, 1994. All such questions shall receive
expeditious response, September 16, 1994. All such questions shall
receive expeditious response, and all such comments, questions and
answers shall be available at Southeastern headquarters for inspection
or copying in accordance with the Freedom of Information Act. The forum
transcripts will likewise be available for inspection at Southeastern
headquarters in Elberton, Georgia.
Issued at Elberton, Georgia, June 21, 1994.
John A. McAllister, Jr.,
Administrator.
General. The projects and power subject to this policy are:
------------------------------------------------------------------------
Capacity Energy
(kw) (mwh)
Projects (nameplate) (average
annual)
------------------------------------------------------------------------
Allatoona..................................... 74,000 156,000
Buford........................................ 86,000 193,000
Carters:
(\1\)....................................... 250,000 \3\198,000
(\2\)....................................... 250,000
J. Strom Thurmond............................. 280,000 729,000
Hartwell...................................... 344,000 483,000
Robert F. Henry............................... 68,000 343,000
Millers Ferry................................. 75,000 397,000
Walter F. George.............................. 130,000 436,000
West Point.................................... 73,375 208,000
Richard B. Russell:
(\1\)....................................... 300,000 \3\484,000
(\2\)....................................... 340,000
------------------------------------------------------------------------
\1\Carters has 2 generating units rated at 125,000 kw each. Russell has
4 generating units rated at 75,000 kw each.
\2\Carters has 2 pumping units rated at 125,000 kw each. Russell has 4
pumping units rated at 85,000 kw each.
\3\Natural stream flow energy only.
There will be one policy for the Georgia-Alabama-South Carolina
System of projects progressively implemented. It will become effective
upon publication in the Federal Register and will be applicable to the
sale of system power in respective utility areas as then existing
contracts, or necessary extensions, expire.
The policy will be implemented through negotiated contracts for
terms not to exceed 10 years.
Transmission facilities owned by utilities within the marketing
area will be used for all necessary purposes including transmitting
power to load centers. Deliveries may be made at the projects, at
utilities' interconnections or at customer substations, as determined
by Southeastern. The projects will be hydraulically, electrically, and
financially integrated, and will be operated to make maximum
contribution to the power supply of the selected utility areas.
Preference in the sale of the power shall be given to public bodies and
cooperatives.
Marketing Area. The marketing area shall consist of the approximate
112,000 square mile area generally known as The Southern Company
service area, and the approximate 40,000 square mile area generally
known as the service areas of the South Carolina Public Service
Authority and the South Carolina Electric and Gas Company plus that
portion of the Duke Power Company's service area within a radius of 150
miles of the Hartwell, Russell or Thurmond projects. Eligible public
bodies and cooperatives in this marketing area are listed in Appendix A
attached hereto.
Allocations of Existing Power. Existing power available under this
policy for allocation from the Georgia-Alabama-South Carolina System
will primarily be peaking power. The power will be allocated as
follows:
------------------------------------------------------------------------
Customer KW
------------------------------------------------------------------------
Alabama Electric Cooperative............................... 91,000
South Carolina Public Service Authority.................... 215,000
South Mississippi Electric Power Association............... 61,000
Customers in Duke Power Company service area............... 238,000
Customers in S.C. Electric & Gas Co. service area.......... 16,000
Customers in The Southern Company service area............. 1,296,000
------------------------------------------------------------------------
Except where duplication of allocation would result, each public
body and cooperative within the marketing areas as shown in Appendix A
will be eligible for an allocation of existing power, except for the
City of Oxford, Georgia. No reallocation of existing power for the
benefit of Oxford is proposed at this time. Existing preference
customers within the marketing area will retain their present
allocations of capacity and essentially the same energy accompaniment.
It is Southeastern's goal to allocate all available and useful system
power (that power remaining after provision for an appropriate capacity
margin and losses) to preference customers, except power that may be
used for pumping.
Allocation of Power From Russell Pumped Storage Units. Currently,
the pump generator units at the Richard B. Russell Project are
undergoing a series of environmental tests to meet the requirements of
an injunction imposed by the U.S. District Court in the case of South
Carolina Department of Wildlife and Marine Resources v. Marsh et al,
866 F.2d 97 (4th Cir 1989). The first opportunity for commercial
operation of the pumping units is after the completion of these tests.
The environmental tests and schedules were agreed upon by the Corps of
Engineers and the party litigants, and the results of the tests must be
approved by the district court before the units become commercially
available. Should pumped storage units at the Russell project become
commercially available during the tenure of contracts implementing this
policy, after the approval of the district court, after further
mitigating modifications required by environmental concerns, or by any
other means, Southeastern will allocate this additional power as
detailed in the Power Marketing Policy for the Georgia-Alabama-South
Carolina System of Projects promulgated on October 1, 1980 in the
Federal Register. The capacity relative to the Russell pumped storage
units will be allocated to the City of Oxford, Georgia, and to the
existing customers in The Southern Company service area including
Alabama Electric Cooperative and South Mississippi Electric Power
Association (130 MW), the Duke Power Company service area (65 MW), the
South Carolina Electric and Gas service area (5 MW) and the South
Carolina Public Service Authority (60 MW). Adequate capacity has been
retained to provide an appropriate capacity margin. Russell pumped
storage capacity is predicted a this time on testing accomplished to
date and reflects the best estimate at this time. Energy accompaniment
to the pumped storage capacity will be sufficient to provide viable
peaking capacity. The Russell pumped storage power will be allocated as
follows:
------------------------------------------------------------------------
Customer KW
------------------------------------------------------------------------
Alabama Electric Cooperative................................. 9,000
South Carolina Public Service Authority...................... 60,000
South Mississippi Electric Power Association................. 7,000
Customers in Duke Power Company service area................. 65,000
Customers in S.C. Electric & Gas Co. service area............ 5,000
Customers in The Southern Company service area............... 114,000
------------------------------------------------------------------------
Power From Pumped Water. Southeastern will utilize its combination
pumped storage and generation resources to produce high-value on-peak
power. Pumping power, whether generated within the system of projects
or obtained by purchasing or exchange agreement, will be used in pumped
storage operations, at Southeastern's discretion. Should the purchase
alternative be selected, Southeastern will obtain pumping energy from
utilities offering the best terms, and/or resulting in the most
benefits to the system. Should the exchange alternative be selected,
pumped storage operations will be handled with public bodies,
cooperatives and the utilities in a manner not involving the direct
purchase and sales approach, with preference given to public bodies and
cooperatives.
Utilization Of Utility Systems. In the absence of transmission
facilities of its own, Southeastern will use area generation and
transmission systems to integrate the Government's projects, provide
firming, wheeling, exchange and backup services and such other
functions as may be necessary to dispose of system power under
reasonable and acceptable marketing arrangements. Utility systems
providing such services shall be entitled to adequate compensation.
Specific terms and conditions of all such arrangements shall be the
subject of negotiations between Southeastern and the generation and
transmission utilities providing the services. Individual preferred
agencies directly affected by the negotiations shall, through
representatives selected at the outset of negotiations, be kept
currently advised on the status and progress of negotiations.
Southeastern also will consult with and seek advice from these affected
parties.
Wholesale Rates. Rate schedules shall be drawn to recover all costs
associated with producing and transmitting the power in accordance with
then current repayment criteria. Production costs will be determined on
a system basis and rate schedules will relate to the integrated output
of the projects. Rate schedules may be revised periodically.
Resale Rates. Resale rate provisions requiring the benefits of
Southeastern power to be passed on to the ultimate consumer will be
included in each Southeastern customer contract that provides for
Southeastern to supply more than 25 percent of the customers' total
power requirements during the term of the contract.
Energy and Economic Efficiency Measures. Each customer who
purchases Southeastern's power is encouraged to participate in an
integrated resource plan that considers both supply and demand side
alternatives. It is recognized that some Southeastern customers are
members of a power supply organization that does resource planning for
its customers (i.e., power supply cooperatives and joint action
agencies). Where a customer, or a power supply organization that does
resource planning for a Southeastern customer, is responsible to a
regulatory body or another Government agency for an integrated resource
plan, the customer will make a copy of such integrated resource plan
available to Southeastern. All Southeastern customers shall agree to
encourage the efficient use of energy by ultimate customers.
[FR Doc. 94-16708 Filed 7-8-94; 8:45 am]
BILLING CODE 6450-01-M