[Federal Register Volume 61, Number 196 (Tuesday, October 8, 1996)]
[Notices]
[Pages 52781-52782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25730]


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DEPARTMENT OF ENERGY
Alaska Power Administration
[Rate Order No. APA-12]


Eklutna Project - Order Confirming and Approving an Adjustment of 
Power Rates on an Interim Basis

AGENCY: Alaska Power Administration, DOE.

ACTION: Notice of a rate order.

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SUMMARY: Notice is hereby given that the Deputy Secretary approved Rate 
Order No. APA 12 which adjusts the present power rates for the Eklutna 
Project. This is an interim rate action effective October 1, 1996, for 
a period of 12 months. This rate is subject to final confirmation and 
approval by the Federal Energy Regulatory Commission (FERC) for a 
period of up to five years.

FOR FURTHER INFORMATION CONTACT: Mr. Rodney L. Adelman, Administrator, 
Alaska Power Administration, 1000 Independence Avenue, SW, Washington, 
DC 20585, (202) 586-2008.

SUPPLEMENTARY INFORMATION: On May 16, 1996, the Alaska Power 
Administration (APA) published a Federal Register notice of its 
intention to adjust current power rates for the Eklutna Project for a 
period of up to five years. The present rates are 18.7 mills per 
kilowatthour for firm energy, 10 mills per kilowatthour for non-firm 
energy, and 0.3 mills per kilowatthour for wheeling. These rates were 
approved by FERC Order, Docket No. EF94-1011-000 issued February 2, 
1995, for the period October 1, 1994, through September 30, 1999.
    Based on comments received during the public information process, 
APA now proposes that rates be adjusted beginning October 1, 1996, for 
a period of up to five years. The new rates would be 8.8 mills per 
kilowatthour for firm energy, 8.8 mills per kilowatthour for non-firm 
energy, and 0.3 mills per kilowatthour for wheeling. The Federal 
Register notice also indicated APA's intention to seek interim approval 
of the proposed rates by the Deputy Secretary of Energy pending final 
confirmation and approval of the rates by FERC. Following review of 
APA's proposal within the Department of Energy, I approved on an 
interim basis Rate Order No. APA-12 which adjusts the present Eklutna 
Rates for period of up to five years beginning October 1, 1996, subject 
to final confirmation and approval by FERC.

    Issued at Washington, DC, September 30, 1996.
Charles B. Curtis,
Deputy Secretary.
    This is an interim rate action subject to review and approval of 
the Federal Energy Regulatory Commission. It is made pursuant to the 
authorities delegated in DOE Delegation Order No. 0204-108, Amendment 
No. 3 to that Order.

Background

    The Eklutna Project was completed by the U.S. Bureau of Reclamation 
in 1955. The Alaska Power Administration has operated and maintained 
the project since 1967. The Eklutna Project is a single-purpose project 
comprised of a dam, reservoir, 30,000-kW hydroelectric plant, 45 miles 
of 115-kV transmission lines, and three substations serving the 
Anchorage and Palmer areas. All project costs are allocated to power. 
The entire output of the project is under contract to three preference 
customers in the Anchorage-Palmer area on a take-or-pay basis.
    Rate Schedules A-F10, A-N11 and A-W2 now in effect for the Eklutna 
Project were confirmed and approved by order of the Federal Energy 
Regulatory Commission, Docket No. EF94-1011-000 issued February 2, 
1995, for a period ending September 30, 1999.

Discussion

System Repayment

    Studies prepared by the Alaska Power Administration, as required by 
DOE Policy No. RA 6120.2, demonstrate that the present firm rate must 
be decreased. The decreased rate will provide sufficient revenue to 
meet requirements for the rate period and meet project repayment 
criteria by the end of the repayment period. On that basis, the Alaska 
Power Administration proposes an adjustment of the firm rate for a 
period not to exceed five years. The Administrator of Alaska Power 
Administration has certified that the new rates are consistent with 
applicable law and that they are the lowest possible rates to customers 
consistent with sound business principles.

Environmental Impact

    Alaska Power Administration has concluded with Departmental 
concurrence that this rate action will have no significant 
environmental impact within the meaning of the Environmental Policy Act 
of 1969. It is the Alaska Power Administration's determination that the 
rate adjustment does not exceed the rate of inflation and therefore is 
categorically excluded from the NEPA process as defined in 40 CFR 
1508.4 and is listed as a categorical exclusion for DOE in 10 CER 1021, 
Appendix B4.3. The proposed action is not a major Federal action for 
which preparation of an Environmental Impact Statement is required.

Availability of Information

    Information regarding this rate action, including studies and other 
supporting material, is available for public review in the offices of 
the Alaska Power Administration, 2770 Sherwood Lane, Suite 2B, Juneau, 
Alaska.

Public Notice and Comment

    Opportunity for public review and comment on the rate action was 
announced by notice in the Federal Register on May 16, 1996, and in 
three paid advertisements in the newspaper in the market area on June 
13, 14, and 15, 1996. The notice provided for a comment period of 90 
days following publication in the Federal Register. A public 
information and comment forum was scheduled in Anchorage, Alaska on 
June 24, 1996, with public comment period ending August 14, 1994. The 
public information and comment forum was canceled on June 17, 1994, due 
to lack of interest, in accordance with 10 CFR 903.15(b), 10 CFR 
903.15(c) and the Alaska Power Administration's prior notices of the 
public forum.

Submission to FERC

    The rates herein confirmed, approved, and placed in effect on an 
interim basis, together with supporting documents, will be submitted 
promptly to the Federal Energy Regulatory Commission (FERC) for 
confirmation and approval on a final basis.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm and approve on an 
interim basis, effective October 1, 1996, attached Wholesale Power Rate 
Schedules A-F11 A-N12, and A-W3. These rate schedules shall remain in 
effect on an interim basis for a period of 12 months unless such period 
is extended or until the Federal Energy Regulatory Commission confirms 
and approves them or substitute rate schedules on a final basis.


[[Page 52782]]


    Issued at Washington, DC, this 30th day of September 1996.
Charles B. Curtis,
Deputy Secretary.

Schedule A-F12

United States Department of Energy; Alaska Power Administration; 
Eklutna Project, Alaska

Schedule of Rates for Wholesale Firm Power Service

    Effective: October 1, 1996 for a maximum of five years.
    Available: In the area served by the Eklutna Project, Alaska.
    Character and Conditions of Service: Alternating current, sixty 
cycles, three-phase, delivered and metered at the low-voltage side 
of substation.
    Monthly Rate: Capacity charge: None.
    Energy charge: All energy at 8.8 mills per kilowatt-hour.
    Minimum Annual Capacity Charge: None.
    Billing Demand: Not applicable.
    Adjustments: For transformer losses: If delivery is made at the 
high-voltage side of the customer's substation but metered at the 
low-voltage side, the meter readings will be increased 2 percent to 
compensate for transformer losses.
    For power factor: None. The customer will normally be required 
to maintain power factor at the point of delivery of between 90 
percent lagging and 90 percent leading.
    For auxiliary power service: Auxiliary power supplies may be 
used in conjunction with the service hereunder if the parties 
hereto, prior to the Contractor's utilization of any such auxiliary 
power supply, have entered into a written operating agreement 
defining the procedure by which the amount of power and energy will 
be determined.

Schedule A-N13

United States Department of Energy; Alaska Power Administration; 
Eklutna Project, Alaska

Schedule of Rates for Wholesale Nonfirm Power Service

    Effective: October 1, 1996 for a maximum of five years.
    Available: In the area served by the Eklutna Project, Alaska.
    Applicable: To firm power customers normally maintaining 
generating facilities or other sources of energy sufficient to 
supply their requirements.
    Character and Conditions of Service: Alternating current, sixty 
cycles, three-phase, delivered and metered at the low-voltage side 
of substation.
    Monthly Rate: Capacity charge: None.
    Energy Charge: All energy at 8.8 mills per kilowatt-hour.
    Minimum Charge: None.
    Billing Demand: Not applicable.
    Adjustments: For character and conditions of service: None.
    For transformer losses: If delivery is made at the high-voltage 
side of the customer's substation but metered at the low-voltage 
side, the meter readings will be increased 2 percent to compensate 
for transformer losses.

Schedule A-W3

United States Department of Energy; Alaska Power Administration; 
Eklutna Project, Alaska

Schedule of Rates for Wholesale Wheeling Service

    Effective: October 1, 1996 for a maximum of five years.
    Available: In the area served by the Eklutna Project, Alaska.
    Applicable: To all non-federal power transmitted over Eklutna 
Project transmission facilities for the benefit of Project 
customers.
    Character and Conditions of Service: Alternating current, sixty 
cycles, three-phase, delivered and metered at the low-voltage side 
of substation.
    Monthly Rate: Capacity charge: None.
    Energy Charge: All energy wheeled for others at .3 mills per 
kilowatt-hour.
    Minimum Charge: None.
    Billing Demand: Not applicable.
    Adjustments: For character and conditions of service: None.
    For transformer and transmission losses: As specified in 
wheeling contracts.
[FR Doc. 96-25730 Filed 10-7-96; 8:45 am]
BILLING CODE 6450-01-P