Legislation Concerning Long-term Utility Contracts: Hearings Before the Joint Committee on Atomic Energy, Congress of the United States, Eighty-third Congress, First Session, on H.R. 4905, a Bill to Amend the Atomic Energy Act of 1946, as Amended, Relating to Contracts for Electric Utility Services for Certain of Its Installations, April 28 and June 10, 1953 |
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$57 million AEC load amortization amount appropriation bill Appropriations Committee assume Atomic Energy Commission basis BOYER cancellation charges cancellation provisions capacity Chairman COLE coal Commission's Congress construction date of notice demand charge Electric Energy electric power equity capital expansion program facilities Federal Power Commission figure full-scale operation funds gaseous diffusion plants going Government installation investment joint committee June 30 kilowatts language legislation limitation load growth maximum liability ment MW Annual percent negotiated notice of cancellation notice period Oak Ridge Ohio Valley Electric OVEC Paducah payment percent of growth Pike County portion Portsmouth power companies power contracts power requirements question rate of growth Representative DURHAM Representative HINSHAW Representative HOLIFIELD Representative JENKINS Representative VAN ZANDT Senator BRICKER Senator MILLIKIN Senator PASTORE SMYTH sponsoring companies station STERLING COLE Supplemental Appropriation Act TENNESSEE VALLEY AUTHORITY termination tion Valley Electric Corp
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Page 55 - ... power generating stations. Also, through arrangements with sponsoring companies, OVEC will supply from these companies' systems, the reserve power when needed due to outages in the stations or transmission facilities being constructed to serve the AEC load. Following extensive negotiations, the Commission executed with OVEC on October 15, 1952, a contract for the construction of the necessary generating facilities and for the supply of power to the Portsmouth installation. The contract is for...
Page 65 - ... power requirements, one-third of our system capacity at the end of 1955 will be devoted to supplying power to AEC. This means that if the use of power at your projects were to cease at that time, the other loads on the TVA system would have to increase 50 percent to absorb the supply. The demand charge component in our price to you for power covers costs which continue whether the capacity is used or not. Therefore, as indicated above, even if AEC...
Page 54 - The Joint Committee on Atomic Energy and the appropriations committees of the House and Senate were advised of these agreements by letters dated October 1, 1952. (Attachment A.) Contracts have also been negotiated with TVA for permanent power requirements at Oak Ridge, Tenn. and Paducah, Ky. While the authority contained in the Supplemental Appropriation Act, 1953, pertains only to long-term electric utility contracts in connection with the expansion program, the...
Page 55 - ... the interim agreement and is to be executed in substantially the form of that attachment. The Commission has the option of extending the contract after the initial 25year period for such additional period as may be necessary to meet its requirements at the rates provided in the contract adjusted to give full credit to the Government for the reduction or elimination of interest and amortization charges on borrowed capital during the previous period of the contract. The estimated electric power...
Page 75 - Co. Cleveland Electric Illuminating Co. Columbus & Southern Ohio Electric Co. Dayton Power & Light Co.
Page 4 - Congress las't month with the approval of the Bureau of the Budget, would do two things: First, it would remove the present limitation of $57 million as the maximum cancellation liability the Commission could assume in the power contracts for the new expansion program facilities covered by the Supplemental Appropriation Act, 1953. Second, it would extend the scope of the language to cover power contracts existing before June 30, 1952, to supply the power requirements of the baae program facilities...
Page 55 - demand charge" represents fixed charges and operating expenses of the company on that portion of the plant and equipment needed to meet the Commission's power requirements, such as interest and amortization of debt, insurance, property taxes, fixed return on equity capital, etc. The "energy charge...
Page 59 - The amount of the cancellation charge for each year of the contract is shown on the table below covering the estimated maximum cancellation costs under the contract. The cancellation provisions in respect to the 235,000 kilowatts of additional power reflect the fact that the problem of the company's absorbing the additional 235,000 kilowatts of power is superimposed on the problem which the company would have in disposing of the first 500,000 kilowatts of power in the event of cancellation of the...
Page 5 - Commission if the contingencies should arise that are contemplated in the contracts. It is quite clear why the Commission must be prepared to assume the contingent liability for paying full cancellation costs. The primary reason is that each of the utility groups providing these large blocks of power would require several years to absorb into its system the generating capacity that would be available if the Commission found it necessary either to curtail sharply or discontinue its demand for power....
Page 58 - ... construction of the necessary generating facilities and for the supply of power to the Portsmouth installation. The contract is for a period of 25 years. The Commission has the option of extending the contract after the initial 25-year period for three successive periods of 5 years each under terms which will give full credit to the Government for the reduction or elimination of interest and amortization charges on borrowed capital during the initial term of the contract. In order to permit the...