[Federal Register Volume 61, Number 96 (Thursday, May 16, 1996)]
[Notices]
[Page 24783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12282]
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DEPARTMENT OF ENERGY
Alaska Power Administration
Proposed Rate Adjustment for Eklutna Project
AGENCY: Alaska Power Administration, DOE.
ACTION: Notice of public forum, review and comment.
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SUMMARY: Alaska Power Administration (APA) is proposing to adjust the
rates for the Eklutna Project. Rates of 18.7 mills per kilowatt-hour
for firm energy, 10 mills per kilowatt-hour for non-firm energy and .3
mills per kilowatt-hour for wheeling expire September 30, 1999. Due to
a decrease in combined projected overhead and O&M costs, APA proposes
to lower the rate for firm and nom-firm energy to 8.8 mills per
kilowatt-hour beginning September 1, 1996 for a period of up to five
years. The rate for 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 until August 14, 1996.
.ADDRESSES: Written comments should be submitted to Mr. Nicki J.
French, Alaska Power Administration, 2770 Sherwood Lane, Suite 2B,
Juneau, Alaska 99801.
FOR FURTHER INFORMATION CONTACT: Mr. Nicki J. French, Assistant
Administrator, Alaska Power Administration, 2770 Sherwood Lane, Suite
2B, Juneau, AK 99801, (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 24, 1996, at 6:00 PM, 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 17, 1996. 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
(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, 1994. APA has repaid
over 82% of the project investment. The proposed rate results in an 53%
rate decrease. APA has notified its customers that a new rate would be
developed based on decreased overhead costs and elimination of Eklutna
O&M costs. APA will continue its rate evaluation based on projected
staffing and include the results in the final rate proposal. Alaska
Power Administration Asset Sale and Termination Act was signed by the
President on November, 1995. As part of the transition to new
ownership, APA is entering an O&M agreement with the purchasing
utilities. With the new O&M agreement between APA and the purchasing
utilities, APA expects the utilities to incur all O&M and replacement
costs throughout the term of the agreement. The reduction in costs to
APA have been included in the repayment study supporting the proposed
rates. APA will continue formulating and executing transition plans
based on the existing purchase agreements and signed legislation for
the sale of the Eklutna project to the Anchorage utilities. 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, May 6, 1996.
Lloyd A. Linke,
Administrator.
[FR Doc. 96-12282 Filed 5-15-96; 8:45 am]
BILLING CODE 6450-01-P