EP 1165-2-1
30 Jul 99
affect on other project purposes; will not result in significant
adverse environmental impacts; will not involve major structural or
operational changes in the project; and will not adversely affect the
use, management, or protection of existing Federal, state, or tribal
water rights. If the agencies submit comments, the Secretary shall
accept those comments or respond in writing to any objections raised
to the proposed determinations. (Section 216 of WRDA 1996)
16-5.
Marketing of Corps-Produced Power.
a. Under the provisions of Section 5 of the Flood Control Act
of 1944 (Public Law 534, 78th Congress) and other acts, power
developed at projects under the jurisdiction of the Chief of
Engineers, which is surplus to project needs, is turned over to the
Secretary of Energy for marketing. Law requires that the Secretary of
Energy shall transmit and dispose of Federal power and energy so as to
encourage the most widespread use at the lowest possible rates to
consumers, consistent with sound business principles. It also provides
that, in the sale of power, preference is given to public bodies and
cooperatives. Agencies of the Department of Energy which market the
power are: The Bonneville Power Administration, Southwestern Power
Administration, Southeastern Power Administration, the Western Area
Power Administration and the Alaska Power Administration. Rates for
sale of power to recover allocated costs are established by the
marketing agency of the Department of Energy and approved by the FERC.
The marketing agency is required to so establish the rates as to
recover the cost of producing and transmitting the power, including
repayment of the Federal investment, over a reasonable period of years
(50 years is established by the Secretary). (ER 1130-2-510)
b. If development of the power is funded by a non-Federal
sponsor, the power must still be marketed by the appropriate Federal
marketing agency pursuant to Federal law. Repayment of the sponsor's
investment will be pursuant to a tri-party agreement between the
sponsor, Corps and marketing agency (the period of recovery should not
exceed 50 years).
c. Marketing of power produced from FERC licensed power plants
at Corps projects is the responsibility of the licensee. The Corps
and the Federal marketing agencies are not involved in the related
marketing arrangements. See paragraph 16-9.
16-6. Pumped Storage Power. Possibilities for pumped storage
developments are investigated in pre- and postauthorization planning
studies for the optimum development of water resources. Where
potentials exist, the engineering and economic aspects are reported to
a degree consistent with the nature and scope of the report.
a. Integral Facilities. Integral facilities (usually a
conventional powerhouse with reversible units) are considered in
reports and recommended as a part of a Federal project when such
facilities are justified and represent the best development of the
site. Adjoining plants (usually detached plants using the reservoir
for an afterbay) which are similarly qualified, and the operations of
which would have a significant interrelation with other project
operations, may also be included in the recommended plan.
16-3
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