[Federal Register Volume 61, Number 126 (Friday, June 28, 1996)]
[Notices]
[Pages 33722-33723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16564]


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[[Page 33723]]


DEPARTMENT OF ENERGY

Alaska Power Administration; Notice of Cancellation, Review, and 
Comment

AGENCY: Alaska Power Administration, Department of Energy.

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 non-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 through August 15, 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. James W. Davenport, Public 
Utilities Specialist, 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, will be 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 was to be held June 24, 
1996, at 6:00 PM. However, due to lack of interest, the forum was 
canceled, 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, 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 28, 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 Washington, DC June 20, 1996.
Rodney Adelman,
Administrator.
[FR Doc. 96-16564 Filed 6-27-96; 8:45 am]
BILLING CODE 6450-01-P