# Proposed Rate Adjustment for Eklutna Project > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-10576 ## Record - **Collection:** Federal Register - **Document type:** Uncategorized Document - **Published:** May 3, 1994 ## Text DEPARTMENT OF ENERGY Alaska Power Administration Proposed Rate Adjustment for Eklutna Project AGENCY: Alaska Power Administration, Department of Energy. ACTION: Notice of proposed rate adjustment for Eklutna Project, notice of public forum and opportunity for review and comment. ----------------------------------------------------------------------- SUMMARY: Alaska Power Administration (APA) is proposing to adjust the rates for the Eklutna Project. Rates of 17 mills per kilowatthour for firm energy, 10 mills per kilowatthour for non-firm energy and .3 mills per kilowatthour for wheeling expire September 30, 1994. APA proposes to raise the rate for firm energy to 18.9 mills per kilowatthour beginning October 1, 1994 for a period of up to five years. Rates for non-firm energy and 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 for 90 days from the date of this publication. 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, AK 99802, (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 14, 1994, at 7 p.m., 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 7, 1994. 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 (Pub. L. 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 1990. APA has repaid over 75% of the project investment. Since the last rate action Operation and Maintenance (O&M) costs have increased. The major contributors to this increase are the addition of the Government's unfunded liability for the Civil Service Retirement System in the repayment studies, and an increase in the number of staff dealing with environmental compliance issues. The proposed rate results in an 11% rate increase. This is below the rate of inflation from 1990 to 1994. APA has notified its customers that a rate was being developed. One of the customers has asked that APA look at the increased O&M costs and to verify the need for the increases. APA is in the process of doing this and will include the results of this evaluation in the final rate proposal. Given the age of the Eklutna Project, APA expects sizeable replacement costs over the next several years. These costs have been included in the repayment study supporting the proposed rates. 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, April 21, 1994. Michael A. Deihl, Administrator. [FR Doc. 94-10576 Filed 5-2-94; 8:45 am] BILLING CODE 6450-01-P --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-10576. Public record. Not legal advice.