[Federal Register Volume 62, Number 42 (Tuesday, March 4, 1997)]
[Notices]
[Pages 9762-9763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5258]


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DEPARTMENT OF ENERGY
Southeastern Power Aministration


Intent To Formulate Revised Power Marketing Policy Cumberland 
System of Projects

AGENCY: Southeastern Power Administration, DOE.

ACTION: Notice.

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SUMMARY: Pursuant to its Procedure for Public Participation in the 
Formulation of Marketing Policy published in the Federal Register of 
July 6, 1978, Southeastern intends to revise its marketing policy for 
future disposition of power from its Cumberland System of Projects.
    The current power marketing policy published on August 5, 1993, for 
the Southeastern Power Administration's (Southeastern) Cumberland 
System is reflected in contracts for the sale of system power which are 
maintained in Southeastern's headquarter's offices. Proposals and 
recommendations for consideration in formulating the proposed revised 
marketing policy are solicited, as are requests for further information 
or consultation.

EFFECTIVE DATE: Comments must be submitted on or before April 3, 1997.

ADDRESSES: Five copies of written proposals or recommendations should 
be submitted to the Administrator, Southeastern Power Administration, 
Elberton, Georgia 30635, (706) 213-3800.

FOR FURTHER INFORMATION CONTACT: Charles A. Borchardt, Administrator, 
Southeastern Power Administration, Elberton, Georgia 30635, (706) 213-
3800.

SUPPLEMENTARY INFORMATION: A ``Final Power Marketing Policy for the 
Cumberland System of Projects'' was developed and published in the 
Federal Register on August 5, 1993, 58 FR 41762 by Southeastern. 
Transmission contracts under this policy with Tennessee Valley 
Authority (TVA) and Carolina Power & Light (CP&L) are in the process of 
renegotiation. A contract with Kentucky Utilities Company (KU) for 
power allocated to municipal preference customers in the KU area was 
executed December 31, 1996. The Cumberland System consists of Barkley, 
Center Hill, Cheatham, Cordell Hull, Dale Hollow, Laurel, Old Hickory, 
J. Percy Priest, and Wolf Creek projects. The power from the projects 
is currently marketed to Preference Customers located in the service 
areas of TVA, Big Rivers Electric Corporation, CP&L (Western Division), 
East Kentucky Power Cooperative, KU, Municipal Energy Agency of 
Mississippi, the seven cooperative members of South Mississippi 
Electric Power Association currently receiving Cumberland power, and 
Southern Illinois Power Cooperative. The policy establishes the 
marketing area for system power and deals with the allocation of power 
among or for the benefit of area customers. It also deals with 
utilization of area utility systems for essential purposes, wholesale 
rates, resale rates, and energy and economic efficiency measures.
    Under Section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s), 
Southeastern is responsible for the transmission and disposition of 
electric power and energy from reservoir projects operated by the 
Department of Army. Southeastern has negotiated transmission contracts 
with area utilities described previously under this authority. To pay 
the transmission fees under these contracts to area utilities 
Southeastern must obtain an appropriation each year in a budget 
approved by Congress and the President. Because of budget

[[Page 9763]]

constraints, Southeastern has had difficulty in obtaining these 
appropriations. This difficulty has compelled Southeastern to consider 
selling the government power at the bus bar of the projects. 
Southeastern requests comments on this change in its marketing policy. 
The current policy does not contemplate such a disposition of the power 
from the projects.

    Issued in Elberton, Georgia, February 20, 1997.
Charles A. Borchardt,
Administrator.
[FR Doc. 97-5258 Filed 3-3-97; 8:45 am]
BILLING CODE 6450-01-P