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FERC proposes changes to annual charges for Alaska's hydroelectric projects

Published 17 August 2017

The Federal Energy Regulatory Commission (FERC) is proposing a new method for calculating annual federal land use charges for hydro power projects that occupy federal lands in Alaska.

Today’s Notice of Proposed Rulemaking (NOPR) seeks comment on the use of a statewide average per-acre land value rather than a regional per-acre land value.

FERC issued a Notice of Inquiry in November 2016 soliciting input on its current methodology for calculating annual charges for the use of government lands in Alaska.

In 2013, FERC issued a final rule revising the methodology for calculating rental rates for the use of government lands by hydropower projects. The new fee schedule is based on a formula with the following components: a per-acre land value by county or geographic area; an encumbrance factor; a rate of return that converts the land value to a rental value; and an annual inflation adjustment.

FERC-regulated hydropower licensees must compensate the U.S. government for the use of federal lands through payment of an annual charge. The fees collected are distributed to the U.S. Treasury and the states in which the projects are located.

Comments on the NOPR are due 60 days after publication in the Federal Register.

Source: Company Press Release