Snettisham Project; Wholesale Power Rates

DEPARTMENT OF ENERGY

Alaska Power Administration

Snettisham Project; Wholesale Power Rates

AGENCY: Alaska Power Administration, Department of Energy

ACTION: Notice of proposed rate adjustment for the Snettisham Project,

notice of public forum and opportunity for review and comment.

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SUMMARY: Alaska Power Administration (APA) is proposing to adjust the

rates for the Snettisham Project. The present rate of 32.1 mills per

kilowatthour is insufficient to meet the Snettisham Project's repayment

criteria. APA proposes to raise the rate for firm energy to 34.4 mills

per kilowatthour beginning May 1, 1995, for a period of up to five

years. Rates for non-firm energy deliveries under both the oil

displacement and wood-heat displacement programs would not change. 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 on or before March 7, 1995.

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, Alaska 99801, (907) 586-7405.

SUPPLEMENTARY INFORMATION: The proposed rates apply for power sold from

the Snettisham Hydroelectric Project to the electric utility serving

the Juneau area and a State-owned hatchery at the Snettisham Project.

Details of the proposed rates, including supporting studies, are

available for inspection at Alaska Power Administration, 2770 Sherwood

Lane, Suite 2B, Juneau, Alaska. A public information and comment forum

is scheduled to be held January 12, 1995, at 7:00 PM, in Room 320 of

the Super 8 Motel, 2295 Trout Street, Juneau, Alaska. APA is requesting

that the parties interested in attending the public information and

comment forum notify APA of this intent in writing by January 5, 1995.

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 1962 Flood Control Act (Public Law 87-874), the Water

Resource Development Act (Public Law 94-587) and the Department of

Energy Organization Act (Public Law 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 1991. Since the last

rate action, sales have been significantly lower than projected and the

actual cost of the Crater Lake Addition to the Snettisham Project was

higher than estimated. The proposed rate results in a seven percent

rate increase. This is below the rate of inflation from 1991 to 1994.

Firm sales from the Snettisham Project were six percent (53 GWh)

less than projected in August of 1991. Non-firm sales were down nine

percent (4 GWh). The reduced sales resulted in revenues that were four

percent ($1.1 million) less that forecasted in August 1991. The actual

cost, to date, for the Crater Lake Addition is 7 percent ($5 million)

higher than estimated in August of 1991.

The sales forecast APA used in August of 1991 was based on loads

during a historically normal weather year. APA has based its new sales

forecast on a more conservative approach using warmer than normal

weather load patterns. This results in lower sales projections due to

reduced heating loads. APA believes this will result in more stabile

rates for the Snettisham Project.

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, November 22, 1994.

Michael A. Deihl,

Administrator.

[FR Doc. 94-29964 Filed 12-5-94; 8:45 am]

BILLING CODE 6450-01-P