Alaska Power Administration:
Financial Management and Program Operations
EMD-78-1: Published: Dec 20, 1977. Publicly Released: Dec 20, 1977.
- Full Report:
The Alaska Power Administration (APA) operates two hydroelectric projects--Eklutna and Snettisham. Both projects require increases in power rates in order to pay back federal investments. Recent legislation was enacted to encourage more rapid use of Snettisham power, but the legislation restricts the Administrator's ability to financially manage the repayment of the federal investment in the project.
The Alaska Power Administration's Federal Power Program, which is responsible for operating and maintaining the two hydroelectric generating projects and for power-marketing operations, had assets of $109.2 million on June 30, 1976, and income from selling electric power of $2.1 million for fiscal year (FY) 1976. The APA conducts investigations related to the future development and use of water, power, and other resources. General investigations cost $652,000 in FY 1976. The Federal Power Program lost $1.3 million net during FY 1976 principally because of losses from operating the Snettisham project. Total net revenues from the program were $7 million on June 30, 1976.
Matter for Congressional Consideration
Comments: Please call 202/512-6100 for additional information.
Matter: To maintain a consistent rate-setting review policy, Congress should enact legislation requiring Federal Energy Regulatory Commission approval of the power rates established for the Snettisham project. Congress should also closely monitor and review those provisions of the Water Resources Development Act of 1976 which limit repayment of the Federal investment, with particular attention to whether the law is encouraging rapid use of the surplus Snettisham power.