[Federal Register Volume 59, Number 67 (Thursday, April 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8361]
[[Page Unknown]]
[Federal Register: April 7, 1994]
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DEPARTMENT OF ENERGY
Bonneville Power Administration
The Eugene Water and Electric Board Proposed Billing Credits
Generation Agreement
AGENCY: Bonneville Power Administration (BPA), DOE.
ACTION: Notice of intent. BPA announces its intention to sign a billing
credits generation agreement for the Wauna Cogeneration Project located
in Clatskanie, Oregon.
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SUMMARY: BPA has previously signed other Billing Credits Generation
Agreements, in addition to the contract described in this Notice. The
Wauna Cogeneration Project is located at the James River Wauna Oregon
mill. The size of the Project is based on thermally matching the mill's
steam needs for the pulp and paper making process. The generator will
have an approximate nameplate rating of 36 megawatts. The incremental
fuel used for electrical generation is natural gas. The backpressure
turbine installation will augment existing pressure reducing valves.
The expected annual energy production is estimated at 26.4 average
megawatts beginning in January 1996. The Project will be interconnected
to the mill electrical system at 13.8 KV.
BPA, pursuant to its Billing Credits Policy, as amended August 30,
1984, (49 FR 34395), and revised on January 29, 1993, (58 FR 37918) has
negotiated this Billing Credits Generation Agreement with Eugene Water
and Electric Board (EWEB) for the Wauna Cogeneration Project.
Responsible Official: Mr. George Bell, Lower Columbia Area Office,
is the official responsible for EWEB's Billing Credits contract and the
Administrative Record.
DATES: BPA will receive comments on the proposed Billing Credits
Generation Agreement for 30 days, after which time BPA may execute the
contract. Payment or credits will not be made or granted until 90 days
after BPA executes the Billing Credits Generation Agreement.
FOR FURTHER INFORMATION CONTACT: For a copy of the EWEB Billing Credits
Generation Agreement, or the Administrative Record, please contact the
Public Involvement Manager, Bonneville Power Administration, P.O. Box
12999, Portland, Oregon 97212. Telephone numbers, voice/TTY, for the
Public Involvement Office are (503) 230-3478 in Portland, or toll-free
(800) 622-4519. Information may also be obtained from:
Mr. George E. Bell, Lower Columbia Area Manager, Suite 243, 1500 NE.
Irving Street, Portland, Oregon 97232, (503) 230-4552.
Mr. Wayne R. Lee, Upper Columbia Area Manager, Suite 500, Crescent
Court, 707 Main, Spokane, Washington 99201, (509) 353-2518.
Mr. George E. Eskridge, Montana District Manager, 800 Kensington,
Missoula, Montana 59801, (406) 329-3060.
Mr. Terence G. Esvelt, Puget Sound Area Manager, Suite 400, 201 Queen
Avenue North, Seattle, Washington 98109-1030, (206) 553-4130.
Mr. Thomas Wagenhoffer, Snake River Area Manager, 1520 Kelly Place,
Walla Walla, Washington 99362, (509) 527-6226.
Ms. C. Clark Leone, Idaho Falls District Manager, 1527 Hollipark Drive,
Idaho Falls, Idaho 83401, (208) 523-2706.
Mr. Jim Normandeau, Boise District Manager, Room 450, 304 North Eighth
Street, Boise, Idaho 83702, (208) 334-9137.
Mr. Robert Laffel, Eugene District Manager, 86000 Franklin Blvd.,
Eugene, Oregon 97405, (503) 465-6952.
Ms. Carol S. Fleischman, Spokane District Manager, Crescent Court,
suite 500, 707 Main, Spokane, Washington 99201, (509) 353-3279.
SUPPLEMENTARY INFORMATION: The Administrative Record, available for
public review, contains background on BPA's Billing Credits Policy and
a Record of Decision for the Wauna Cogeneration Project and
environmental considerations.
I. Background
BPA is a self-financing power marketing agency with the United
States Department of Energy. BPA was established by the Bonneville
Project Act of 1937, 16 U.S.C. 832 et seq., to market wholesale power
from Bonneville Dam and to construct power lines for the transmission
of this power to load centers in the Northwest. BPA sells wholesale
electric power and energy to 126 utilities, 13 direct service
industrial customers and several government agencies.
The Pacific Northwest Electric Power Planning and Conservation Act
(Northwest Power Act) directs BPA to serve the net power requirements
of any electric utility requesting service, and to serve existing DSIs
in the Pacific Northwest. 16 U.S.C. 839c(b)(1) and (d). Although BPA
cannot own or construct electric generating facilities, the Northwest
Power Act directs BPA to acquire rights to the output or capability of
electric power resources to serve increased customer requirements. See
16 U.S.C. 839d(h). Billing Credits may be adjustments to customers'
power bills or equivalent cash payments. Resources eligible for Billing
Credits include conservation and generation.
Specific requirements for resources and the amount BPA can pay for
these resources are outlined in the Northwest Power Act and BPA's
Billing Credits Policy.
BPA's Billing Credits Policy interprets the Billing Credits
provisions in the Northwest Power Act, prescribes criteria for customer
and resource eligibility, and establishes procedures for granting
Billing Credits.
II. Description of the Generation Proposal
BPA proposes to issue the Billing Credits as a method to facilitate
Project construction pending the issuance of a ruling by the Internal
Revenue Service under section 9(f) of the Northwest Power Act relating
to the portion of the Project's output that will be furnished to
nongovernmental persons and the extent to which the private business
use test of section 141(b) of the Internal Revenue Code of 1986, as
amended, will be met. Upon issuance of a ruling favorable to EWEB, the
Billing Credits will terminate in favor of a negotiated Power Purchase
Agreement with similar terms and conditions for all parties.
This project meets the qualifications for Billing Credits, and BPA
has completed its obligations under the National Environmental Policy
Act. EWEB will comply with all applicable environmental requirements in
the construction of the project and during the operation phase.
III. Methodology for Determining Generation Billing Credits
The payment for Billing Credits for EWEB will be calculated and
paid monthly as follows:
EWEB is a Computed Requirements Customer under its Power Sales
Contract with BPA, the monthly Billing Credits will be the lesser of
the Adjusted Alternative Cost or Net Cost multiplied by the monthly
amounts of Assured Energy Capability of the Billing Credits Resource,
less the amount of Priority Firm Rate dollars EWEB avoids paying as a
result of the Billing Credits Resource. There is no annual true-up
because EWEB is required to maintain the Assured Energy Capability for
the Billing Credits Resource, as it must do for all its firm resources
under the Power Sales Contract.
IV. Materials Available
Copies of the Billing Credits Policy and the Administrative Record
are available from BPA's Public Involvement Office. Refer to the ``For
Further Information Contact'' section of this notice.
Issued in Portland, Oregon, on March 24, 1994.
Randall W. Hardy,
Administrator.
[FR Doc. 94-8361 Filed 4-6-94; 8:45 am]
BILLING CODE 6450-01-P