[Federal Register Volume 59, Number 233 (Tuesday, December 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29964]


[[Page Unknown]]

[Federal Register: December 6, 1994]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Alaska Power Administration

 

Snettisham Project; Wholesale Power Rates

AGENCY: Alaska Power Administration, Department of Energy

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

-----------------------------------------------------------------------

SUMMARY: Alaska Power Administration (APA) is proposing to adjust the 
rates for the Snettisham Project. The present rate of 32.1 mills per 
kilowatthour is insufficient to meet the Snettisham Project's repayment 
criteria. APA proposes to raise the rate for firm energy to 34.4 mills 
per kilowatthour beginning May 1, 1995, for a period of up to five 
years. Rates for non-firm energy deliveries under both the oil 
displacement and wood-heat displacement programs would not change. 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 on or before March 7, 1995.

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, Alaska 99801, (907) 586-7405.

SUPPLEMENTARY INFORMATION: The proposed rates apply for power sold from 
the Snettisham Hydroelectric Project to the electric utility serving 
the Juneau area and a State-owned hatchery at the Snettisham Project.
    Details of the proposed rates, including supporting studies, are 
available for inspection at Alaska Power Administration, 2770 Sherwood 
Lane, Suite 2B, Juneau, Alaska. A public information and comment forum 
is scheduled to be held January 12, 1995, at 7:00 PM, in Room 320 of 
the Super 8 Motel, 2295 Trout Street, Juneau, Alaska. APA is requesting 
that the parties interested in attending the public information and 
comment forum notify APA of this intent in writing by January 5, 1995. 
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 1962 Flood Control Act (Public Law 87-874), the Water 
Resource Development Act (Public Law 94-587) and the Department of 
Energy Organization Act (Public Law 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 1991. Since the last 
rate action, sales have been significantly lower than projected and the 
actual cost of the Crater Lake Addition to the Snettisham Project was 
higher than estimated. The proposed rate results in a seven percent 
rate increase. This is below the rate of inflation from 1991 to 1994.
    Firm sales from the Snettisham Project were six percent (53 GWh) 
less than projected in August of 1991. Non-firm sales were down nine 
percent (4 GWh). The reduced sales resulted in revenues that were four 
percent ($1.1 million) less that forecasted in August 1991. The actual 
cost, to date, for the Crater Lake Addition is 7 percent ($5 million) 
higher than estimated in August of 1991.
    The sales forecast APA used in August of 1991 was based on loads 
during a historically normal weather year. APA has based its new sales 
forecast on a more conservative approach using warmer than normal 
weather load patterns. This results in lower sales projections due to 
reduced heating loads. APA believes this will result in more stabile 
rates for the Snettisham Project.
    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, November 22, 1994.
Michael A. Deihl,
Administrator.
[FR Doc. 94-29964 Filed 12-5-94; 8:45 am]
BILLING CODE 6450-01-P