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

DEPARTMENT OF ENERGY

Alaska Power Administration

Snettisham 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--Snettisham Project, rate

schedules SN-F-5, SN-NF-8, SN-NF-9, and SN-NF-10.

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

April 28, 1995, Rate Order No. APA 13 which adjusts the present power

rates for the Snettisham Project. This is an interim rate action

effective May 1, 1995, for a period of 12 months, unless extended, and

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 Lane, Suite 2B, Juneau, AK 99801-8545, (907) 586-7405.

SUPPLEMENTARY INFORMATION: On December 6, 1994, the Alaska Power

Administration (APA) published a Federal Register notice of its

intention to adjust current power rates for the Snettisham Project for

a period of up to five years. The present rates, as approved by FERC at

57 FERC para.62,235, are 32.1 mills per kilowatthour for firm energy.

There is a variable rate for based on the cost of heating oil of 27.1

mills per kilowatthour for non-firm energy based on energy used in

place of wood burning. These rates were approved by FERC Order, Docket

No. EF92-1021-000 issued December 23, 1991, for the period October 1,

1991, through September 30, 1996. Based on the annual certification of

rates, APA now proposes that rates be adjusted beginning May 1, 1995,

for a period of up to five years. The new rates would be 34.7 mills per

kilowatthour for firm energy, with the non-firm rates to remain the

same. 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 April 28, 1995, I approved on an interim basis Rate Order No. APA-13

which adjusts the present Snettisham Rates for period of up to five

years beginning May 1, 1995, subject to final confirmation and approval

by FERC.

[[Page 29582]] Issued at Washington, DC, April 28, 1995.

Bill White,

Deputy Secretary.

Order Confirming and Approving Power Rates on an Interim Basis

April 28, 1995.

In the matter: of Alaska Power Administration--Snettisham

Project Power Rates; Rate Order No. APA-13.

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

Section 204 of the 1962 Flood Control Act (76 Stat. 1194),

authorizes the Crater-Long Lakes Division of the Snettisham Project and

provides authority and general criteria for marketing Snettisham

project power. Section 201 of the 1976 Water Resources Development Act,

Public Law 94-587, provides additional criteria. The DOE Organization

Act (91 Stat. 565) assigns responsibilities for Snettisham to the

Secretary of Energy acting by and through the APA Administrator.

The Snettisham Project was constructed in two phases. The Long Lake

phase went into commercial service in 1975. The Crater Lake phase went

into commercial service in 1991. Section 201 of the 1976 Water Resource

Development Act, Public Law 94-587, set a repayment period of 60 years

for the Long Lake portion of the project and fixed a schedule for its

repayment. The Crater Lake investment carries a 50 year repayment

period.

The Snettisham Project is a single purpose project comprised of two

separate lake taps, power tunnels and penstocks; a single underground

powerplant housing three units with a combined capacity of 78,210 kw;

41 miles of 138 kv overhead transmission line and three miles of

submarine cable; and a single substation serving the Juneau area. A

small amount of energy is sold to the State of Alaska for operation of

a fish hatchery at Snettisham. Rate Schedules SN-F-4, SN-NF-5, SN-NF-6,

SN-NF-7 now in effect for the Snettisham Project were confirmed and

approved by order of the Federal Energy Regulatory Commission, Docket

No. EF92-1021-000 issued December 23, 1991 for a period ending

September 30, 1996.

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 CER 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 officers 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 December 6, 1994, and in

a paid advertisement of a newspaper in the market area on December 22

and 23, 1994. The notice provided for a comment period of 90 days

following publication in the Federal Register. An informational meeting

was held with an advisory committee to the Juneau City Assembly. A new

article on the proposed rate action was published in the Juneau Empire

on February 7, 1995. A public information and comment forum was

scheduled in Juneau, Alaska on January 12, 1995, with public comment

period ending March 7, 1995. The public information and comment forum

was canceled on January 6, 1995, 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 May 1, 1995, attached Wholesale Power Rate

Schedules SN-F-5 SN-NF-8, SN-NF-9 and SN-NF-10. 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 28 day of April 1995.

Bill White,

Deputy Secretary.

[Schedule SN-NF-5]

United States Department of Energy Alaska Power Administration

Snettisham Project, Alaska

Schedule of Rates for Wholesale Firm Power Service

Effective

May 1, 1995 for a maximum of five years.

Available

In the area served by the Snettisham Project, Alaska.

Applicable

To wholesale power customers for general power service.

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: Firm energy at 34.7 mills per kilowatt-hour.

Minimum Annual Capacity Charge

None.

Billing Demand

Not applicable. [[Page 29583]]

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.

[Schedule SN-NF-8]

United States Department of Energy Alaska Power Administration

Snettisham Project, Alaska

Schedule of Rates for Interruptible Power Service

Effective

May 1, 1995 for a maximum of five years.

Available

In the area served by the Smettisham Project, Alaska.

Applicable

To wholesale power customers for resale to their large commercial

and government dual-fuel customers. Availability of energy will be

determined by Alaska Power Administration.

Character and Conditions of Service

Alernating current, sixty cycles, three-phase, delivered and

metered at the low-voltage side of substation.

Monthly Rate

Capacity charge: None.

Energy charge: Variable rate pegged to price of hearing oil

purchased by the State of Alaska or City and Borough of Juneau,

whichever is lower. Refer to Table 1 listing oil prices and comparable

wholesale rates.

Minimum Annual Capacity Charge

None.

Billing Demand

No 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.

Table 1

[GRAPHIC][TIFF OMITTED]TN05JN95.076

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

Wholesale rate (cents/ Wholesale rate (mills/

Fuel oil ($/gal) kwh) kwh)

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

0.50................... 0.84 8.4

0.52................... 0.87 8.7

0.54................... 0.90 9.0

0.56................... 0.94 9.4

0.58................... 0.97 9.7

0.60................... 1.00 10.0

0.62................... 1.03 10.3

0.64................... 1.06 10.6

0.66................... 1.09 10.9

0.68................... 1.13 11.3

0.70................... 1.16 11.6

0.72................... 1.19 11.9

0.74................... 1.22 12.2

0.76................... 1.25 12.5

0.78................... 1.29 12.9

0.80................... 1.32 13.2

0.82................... 1.35 13.5

0.84................... 1.38 13.8

0.86................... 1.41 14.1

0.88................... 1.44 14.4

0.90................... 1.48 14.8

0.92................... 1.51 15.1

0.94................... 1.54 15.4

0.96................... 1.57 15.7

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

United States Department of Energy Alaska Power Administration

Snettisham Project Alaska

Schedule of Rates for Interruptible Power Service

Effective

May 1, 1995 for a maximum of five years.

Available

In the area served by the Snettisham Project, Alaska.

Applicable

To wholesale power customers for resale to their residential dual-

fuel customers. Availability of energy will be determined by Alaska

Power Administration.

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: Variable rate pegged to price of heating oil

purchase by the State of Alaska. Refer to Table 1 listing oil prices

and comparable wholesale rates.

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.

Table 1

[GRAPHIC][TIFF OMITTED]TN05JN95.077

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

Wholesale rate (cents/ Wholesale rate (mills/

Fuel oil ($/gal) kwh) kwh)

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

0.50................... 0.84 8.4

0.52................... 0.87 8.7

0.54................... 0.90 9.0

0.56................... 0.94 9.4

0.58................... 0.97 9.7

0.60................... 1.00 10.0

0.62................... 1.03 10.3

0.64................... 1.06 10.6

0.66................... 1.09 10.9

0.68................... 1.13 11.3

0.70................... 1.16 11.6

0.72................... 1.19 11.9

0.74................... 1.22 12.2

0.76................... 1.25 12.5

0.78................... 1.29 12.9

0.80................... 1.32 13.2

0.82................... 1.35 13.5

0.84................... 1.38 13.8

0.86................... 1.41 14.1

0.88................... 1.44 14.4

0.90................... 1.48 14.8

0.92................... 1.51 15.1

0.94................... 1.54 15.4

0.96................... 1.57 15.7

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

[Schedule SN-NF-10]

United States Department of Energy Alaska Power Administration

Snettisham Project, Alaska

Schedule of Rates for Non-Firm Surplus Power Service

Effective

May 1, 1995 for a maximum of five years.

Available

In the area served by the Snettisham Project, Alaska.

Applicable

To wholesale power customers who have established a rate schedule

providing an incentive retail rate for electric heat customers who also

have a wood stove, for increased use of energy for each month when

compared to the same month in the preceding year. Availability of

surplus energy will be determined by Alaska Power

Administration. [[Page 29584]]

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: 21.7 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.

[FR Doc. 95-13682 Filed 6-2-95; 8:45 am]

BILLING CODE 6450-01-M