[Federal Register Volume 61, Number 96 (Thursday, May 16, 1996)]
[Notices]
[Page 24783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12282]



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DEPARTMENT OF ENERGY
Alaska Power Administration


Proposed Rate Adjustment for Eklutna Project

AGENCY: Alaska Power Administration, DOE.

ACTION: Notice of public forum, review and comment.

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SUMMARY: Alaska Power Administration (APA) is proposing to adjust the 
rates for the Eklutna Project. Rates of 18.7 mills per kilowatt-hour 
for firm energy, 10 mills per kilowatt-hour for non-firm energy and .3 
mills per kilowatt-hour for wheeling expire September 30, 1999. Due to 
a decrease in combined projected overhead and O&M costs, APA proposes 
to lower the rate for firm and nom-firm energy to 8.8 mills per 
kilowatt-hour beginning September 1, 1996 for a period of up to five 
years. The rate for 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 until August 14, 1996.

.ADDRESSES: Written comments should be submitted to Mr. Nicki J. 
French, Alaska Power Administration, 2770 Sherwood Lane, Suite 2B, 
Juneau, Alaska 99801.

FOR FURTHER INFORMATION CONTACT: Mr. Nicki J. French, Assistant 
Administrator, Alaska Power Administration, 2770 Sherwood Lane, Suite 
2B, Juneau, AK 99801, (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 24, 1996, at 6:00 PM, 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 17, 1996. 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 
(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, 1994. APA has repaid 
over 82% of the project investment. The proposed rate results in an 53% 
rate decrease. APA has notified its customers that a new rate would be 
developed based on decreased overhead costs and elimination of Eklutna 
O&M costs. APA will continue its rate evaluation based on projected 
staffing and include the results in the final rate proposal. Alaska 
Power Administration Asset Sale and Termination Act was signed by the 
President on November, 1995. As part of the transition to new 
ownership, APA is entering an O&M agreement with the purchasing 
utilities. With the new O&M agreement between APA and the purchasing 
utilities, APA expects the utilities to incur all O&M and replacement 
costs throughout the term of the agreement. The reduction in costs to 
APA have been included in the repayment study supporting the proposed 
rates. APA will continue formulating and executing transition plans 
based on the existing purchase agreements and signed legislation for 
the sale of the Eklutna project to the Anchorage utilities. 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, May 6, 1996.
Lloyd A. Linke,
Administrator.
[FR Doc. 96-12282 Filed 5-15-96; 8:45 am]
BILLING CODE 6450-01-P