[Federal Register Volume 64, Number 64 (Monday, April 5, 1999)]
[Notices]
[Pages 16432-16433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8287]


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

DEPARTMENT OF ENERGY

[FE Docket Nos. 50849-1613-07-82 and 50849-1613-08-82]


Application for Rescission of a Prohibition Order Issued Pursuant 
to the Powerplant and Industrial Fuel Use Act of 1978 Montaup Electric 
Company and Somerset Power LLC

AGENCY: Office of Fossil Energy, DOE.

ACTION: Notice of Application.

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

SUMMARY: Montaup Electric Company (Montaup) and Somerset Power LLC 
(Somerset) have requested that DOE rescind a prohibition order issued 
for Boiler Nos. 7 and 8 (Unit's 5 and 6, respectively) at Montaup's 
Somerset Generating Station pursuant to the Powerplant and Industrial 
Fuel Use Act of 1978 (FUA).

DATES: Comments, protests or requests to intervene must be submitted on 
or before April 20, 1999.

ADDRESSES: Comments, protests or requests to intervene should be 
addressed as follows: Office of Coal & Power Import and Export (FE-27), 
Office of Fossil Energy, U.S. Department of Energy, 1000 Independence 
Avenue, SW, Washington, DC 20585-0350.

FOR FURTHER INFORMATION CONTACT: Xavier Puslowski (Program Office) 202-
586-4708 or Michael T. Skinker (Program Attorney) 202-586-6667.

SUPPLEMENTARY INFORMATION: On March 25, 1999, Montaup and Somerset 
filed a

[[Page 16433]]

joint application with the Office of Fossil Energy (FE) of the 
Department of Energy for rescission of a Prohibition Order issued in 
Docket Nos. 50849-1613-07-82 and 50849-1613-08-82 on January 27, 1986 
(51 FR 4421, February 4, 1986), pursuant to section 301(c) of FUA and 
10 CFR 504.8. The order took effect on April 7, 1986 and prohibited the 
use of petroleum or natural gas as a primary energy source in Boiler 
Nos. 7 and 8 (Unit Nos. 5 and 6, respectively) at Montaup's Somerset 
Generating Station located in Somerset, Massachusetts, in excess of the 
amounts equivalent to operation of each of the boilers using petroleum 
or natural gas for thirty (30) percent of their respective annual 
operating hours.
    On October 15, 1998, Montaup and NRG Energy, Inc. (NRG) signed an 
Asset Purchase Agreement to sell the Somerset Generating Station to 
NRG. NRG has assigned its rights under that agreement to Somerset Power 
LLC, which will acquire the Somerset Generating Station and associated 
property. Transfer of ownership of the station is scheduled to occur by 
April 1, 1999. Therefore, Montaup and Somerset Power LLC have filed 
this application jointly.
    Pursuant to 10 CFR 501.102(b), Montaup and Somerset filed this 
application based on a substantial change in the circumstances upon 
which the Prohibition Order was originally issued. The applicants note 
a provision of the existing order which states:

    ``* * * changes in the * * * relative economics of coal * * * as 
a fuel source * * * will be deemed to constitute ``significantly 
changed circumstances'' pursuant to 10 CFR 501.102(b) sufficient to 
provide a basis for rescission or modification of the specific 
prohibitions contained in this Order.''

    Montaup and Somerset claim that the price of oil is now 
significantly below the price of coal currently used in the Somerset 
Generating Station and that the continued use of coal would impair the 
facility's competitive position within the electric power market. The 
applicants also state that the deregulation of natural gas prices since 
the issuance of the original Prohibition Order and the prominence 
gained by natural gas as a viable alternative fuel source make the 
continued prohibition or limitation on the use of natural gas serve no 
just purpose. The applicants also note that the use of natural gas can 
offer significant environmental benefits over the burning of coal in 
the Somerset facility. For these reasons, Montaup and Somerset request 
that DOE rescind the Prohibition Order issued for the Somerset 
Generating Station.

Procedural Matters

    Any party or person desiring to be heard or to protest this 
application for rescission should file five copies of any comments, 
protests or petitions to intervene at the address provided above. 
Filings should be clearly marked with the above docket numbers. Any 
request for a public hearing must be made within the public comment 
period. In making its decision regarding the requested rescission 
action, DOE will consider all relevant information submitted or 
otherwise available to it.
    The public file containing a copy of this rescission application is 
available, upon request, at the address above.
    DOE has granted the applicant's request for an expedited notice and 
comment period of fifteen (15) days due to the absence of any comments, 
protests or requests for a hearing having been filed in the original 
proceeding.

    Issued in Washington, DC, on March 30, 1999.
Anthony J. Como,
Manager, Electric Power Regulation, Office of Coal & Power Im/Ex, 
Office of Fossil Energy.
[FR Doc. 99-8287 Filed 4-2-99; 8:45 am]
BILLING CODE 6450-01-P