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

DEPARTMENT OF ENERGY

Alaska Power Administration

Eklutna Project--Notice of Order Confirming and Approving an

Adjustment of Power Rates on an Interim Basis

AGENCY: Alaska Power Administration, DOE.

ACTION: Notice of adjustment of power rates--Eklutna Project, rate

schedules A-F11, A-N12, and A-W3.

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SUMMARY: Notice is hereby given that the Deputy Secretary approved on

September 14, 1994, Rate Order No. APA 12 which adjusts the present

power rates for the Eklutna Project. This is an interim rate action

effective October 1, 1994, 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. Lloyd Linke, Director, Power

Division, Alaska Power Administration, 2770 Sherwood Ln., Suite 2B,

Juneau, AK 99801, (907) 586-7405.

SUPPLEMENTARY INFORMATION: On May 3, 1994, 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 17 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. EF91-1011-000 issued January 25,

1991, for the period October 1, 1990, through September 30, 1994.

Based on comments received during the public information process,

APA now proposes that rates be adjusted beginning October 1, 1994, for

a period of up to five years. The new rates would be 18.7 mills per

kilowatthour for firm energy, 10 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,

on September 14, 1994, 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, 1994, subject to final confirmation and

approval by FERC.

Issued at Washington, DC on September 14, 1994.

William H. White,

Deputy Secretary.

In the Matter of: Alaska Power Administration--Eklutna Project

Power Rates.

Rate Order No. APA-12

Order Confirming and Approving Power Rates on an Interim Basis

September 14, 1994.

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. EF91-1011-000 issued January 25, 1991

for a period ending September 30, 1994.

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 increased to 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 CFR 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 3, 1994, and in

three paid advertisements of newspapers in the market area on May 1, 5,

and 8, 1994. 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 14, 1994, with

public comment period ending August 2, 1994. The public information and

comment forum was canceled on June 7, 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, 1994, 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.

Issued at Washington, DC, this 14th day of September 1994.

William H. White,

Deputy Secretary.

Schedule A-F11

UNITED STATES

DEPARTMENT OF ENERGY

Alaska Power Administration

Eklutna Project, Alaska

Schedule of Rates for Wholesale Firm Power Service

Effective:

October 1, 1994 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 18.7 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-N12

UNITED STATES

DEPARTMENT OF ENERGY

Alaska Power Administration

Eklutna Project, Alaska

Schedule of Rates for Wholesale Nonfirm Power Service

Effective:

October 1, 1994 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 10.0 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, 1994 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. 94-24126 Filed 9-28-94; 8:45 am]

BILLING CODE 6450-01-P