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HomeMy WebLinkAbout1st Annual Report US Dep. of the Interior AK Power Admin 1968FIRST ANNUAL REPORT 1968 TED STATES yo DEPARTMENT OF TH INTERIOR 6 : , ALASKA POWER ADMINISTRATION ' ee © United States Department of the Interior Stewart L. Udall, Secretary Alaska Power Administration Gus Norwood, Administrator The broad focus of the Department of the Interior on the devel- opment and conservation of the Nation’s natural resources is symbolized in the new seal. The figures within the circle depict a pair of hands sur- rounding the sun, mountains and water, indicating the care and responsi- bility man must exercise in dealing with his environment. Created in 1849, the Department of the Interior—America’s De- partment of Natural Resources—is concerned with the management, conservation, and development of the Nation’s water, wildlife, mineral, forest, and park and recreational resources. It also has major responsi- bilities for Indian and Territorial affairs. As the nation’s principal conservation agency, the Department works to assure that nonrenewable resources are developed and used wisely, that park and recreational resources are conserved for the future, and that renewable resources make their full contribution to the pro- gress, prosperity, and security of the United States—now and in the future. Cover Photograph The world famous Inland Passage of Southeast Alaska will retain its unspoiled beauty upon completion of the Snettisham Project. Located 28 air miles southeast of Juneau, the project will utilize underwater direct current cables to deliver 70,000 kilowatts into the Juneau area. The use of solid-state direct current inversion and conversion represents another innovation in the transmission system. UNITED STATES DEPARTMENT OF THE INTERIOR ALASKA POWER ADMINISTRATION P. O. BOX 8O JUNEAU. ALASKA 99801 January 3, 1969 Dear Mr. Secretary: I have the honor to submit the first annual report of the Alaska Power Administration. On June 16, 1967, you established the Alaska Power Administration as a separate Bureau of the Department of the Interior, headquartered in Alaska, to promote the development and utilization of the water, power, and related resources of Alaska. National Interest in Alaska Alaska is an enormous storehouse of resources and energy. It is strategically located with its 4,000 miles of the North Pacific Rim. Alaska has 40 percent of all the fresh water available under the U.S. flag, 34 percent of the nation’s undeveloped water power, 53.7 percent of the U. S. general coastline, 65 percent of the U. S. continental shelf, 1,538 miles of our common boundary with Canada, immense oil, coal, natural gas, mineral, and timber resources, and an area greater than the 21 smaller states combined. Highlights The successful negotiation of the United States-Canada agreement to study the upper Yukon River serves as a fitting capstone for the first year of APA efforts. A second major highlight of this year is the decision to use two direct current underwater cables to transmit energy 45 miles from the Snettisham hydro project to Juneau. The decision was made possible by the adoption of solid state conversion technology to change power from the alternating current generators to direct current for the cable run to Juneau, and then back to alternating current. This innovation aids in preserving the scenic beauty of the world famous Inland Passage of Alaska. It also opens the door for using direct current transmission as the means of bringing low cost power to many islands and other areas of Alaska and elsewhere. These decisions fit in with our basic shift in policies and planning programs generally away from small, isolated, high cost generating plants which cannot do much for Alaska in the long run. Instead, we will concentrate our planning efforts on large generating plants feeding into trans- mission grid systems, operating as power pools to provide low cost power, and including ultimately the inter-connection of Alaska and other West Coast power pools. This shift necessarily emphasizes long-range planning using a building block, step-by-step approach, as we discuss in the report. Today concludes the first ten years of Alaska Statehood, and today begins the second decade. This historical perspective pervades our report and recommendations, particularly in regard to the need for coordinated State-Federal programs in Alaska. The report features six major areas: (1) Eklutna Operations, (2) Railbelt Power System, (3) Snettisham Construction, (4) Southeast Alaska Power System, (5) Alaska Water Study, and (6) In- ternational Yukon River Study. These constitute a six-point program for the immediate future. Eklutna Operations The Alaska Power Administration operates the 30,000-kw Eklutna hydro plant near Anch- orage, and 47 miles of transmission lines serving the greater Anchorage area. Completed in 1955, the project has done yeoman service in providing a stable, reliable supply of power, in bringing down the cost of power, and in facilitating the economic development of the area. This year Congress passed S. 224, the so-called Eklutna earthquake bill, which has enabled us to file a ten percent reduction in wholesale rates, amounting to over $150,000 per year. In fiscal year 1968, APA turned in to the U. S. Treasury $1,715,504 from Eklutna, bringing total revenues since 1955, to $20,814,890. Railbelt Power System Eklutna provides one of the building blocks for the Railbelt Power Pool on which we plan to complete a study in the fall of 1969. Interconnecting the Anchorage and Fairbanks areas with a high voltage transmission line promises an unusually high benefit-to-cost ratio, directly benefiting 64 percent of Alaska’s popu- lation. Our analysis indicates the Railbelt Power Pool would do the most good for the largest num- ber of Alaska people, in the shortest time, for the least cost, and at the highest long term benefit- to-cost ratio. The Alaska Railroad between Anchorage and Fairbanks is strategically located as a baseline of operations providing access to much of Alaska. The area will soon have a modern highway and a microwave system. It has six military bases with 125,400 kilowatts of generating capacity. The international airports, the Comsat station, the extensive University of Alaska program, the timber and mining prospects, the boom in oil and natural gas are among the dynamic factors which we will discuss in our Railbelt Power Pool report. Snettisham Construction Authorized in 1962, the 70,000-kw Snettisham Project goes on line in 1972, as the second Federal hydroelectric project in Alaska. Located 28 air miles southeast of Juneau, it will initially serve the greater Juneau area. Last April, APA joined with the U. S. Army Corps of Engineers in announcing the decision to transmit Snettisham power to Juneau by means of two direct current underwater cables 45 miles long utilizing solid state technology to change power from the alternating current generators to direct current for the cable run to Juneau and then back to A.C. The solid state technology will open the door for using direct current over relatively short distances and for small loads. Already APA has three other requests to study direct current underwater cables for Kodiak, Sitka, and Ketchikan. The cable approach increases reliability, ease of maintenance, preserves the beauty of the world famous Inland Passage, and makes possible a power pool for Southeast Alaska. Southeast Alaska Power System The 45-mile long Snettisham-Juneau cable could serve as the first building block for the Southeast Alaska Power Pool, followed by a 125-mile cable from Snettisham to Sitka. The system can reach out as loads grow, and could some day extend from Skagway to Prince Rupert and draw its main supply of power from the Yukon-Taiya project at Skagway. Alaska Water Study Last spring the Water Resources Council asked the Department of the Interior to serve as lead agency for the Alaska water and related land resources comprehensive framework study. This task was delegated to APA. At a series of meetings this summer, a work group including repre- sentatives of some 30 State and Federal agencies prepared a plan of study and budget estimates. These were sent in on August 1, 1968. This study, which would require about three years, must await funding. Meanwhile, the work group will continue its consideration of actual Alaska water problems and begin outlining the framework plan for comprehensive development. Preliminary planning may also be started on the 18 studies assigned to individual State and Federal line agencies. The Alaska Power Administration will move expeditiously to make power studies projecting load growth and demands to 1980, 2000, and 2020. This 50-year projection will assist in formulat- ing a long range, comprehensive power program for Alaska. International Yukon-Taiya Study During the past year we held conversations with Canada preparatory to exchange of notes for joint United States-Canada studies of the upper Yukon River and utilization of hydroelectric power for the mutual benefit of Canada and the United States. The initial study will relate to the power market potential. Agreement was reached and the notes exchanged on December 19, 1968. APA proposes a stage development of the Yukon-Taiya project to obtain from 700,000 kilowatts initially to 4,000,000 kilowatts ultimately in hydroelectric power. This should provide needed energy to unlock the immensely rich mineralized belt of Alaska, Yukon, and northern British Columbia. As proposed, the development would include high voltage transmission lines interconnecting Alaska and the West Coast Intertie system. This system already extends 1,800 miles from Los Angeles to north-central British Columbia. We think this is an exciting and very promising proposal. Considerable information is already available. A Beginning The journey of a thousand miles begins with the first step. What is past is prologue. In Alaska, the nation has a tremendous and unique economic opportunity. The enormous resources of Alaska constitute the incentive for strong and determined national effort. Your report on Alaska’s natural resources recommended action on transportation, fisheries, mineral exploration, and power. Canada is achieving economic penetration of its resources by means of: (1) transportation, (2) mineral exploration, and (3) power. I yecommend anational decision for a program of coordinated action to achieve the economic penetration of the tremendous natural resources of Alaska. Sincerely, Asoo Gus Norwood Administrator Secretary of the Interior Stewart L. Udall names Gus Norwood Administrator of Alaska Power Administration. The following biographical items are from a Department of the Interior news release of September 7, 1967 Norwood Gus Norwood was born in Chicago, Illinois, January 3, 1916, and raised on a small, unelectri- fied 8-acre farm, 20 miles west of Chicago. Mr. Norwood attended the U. S. Naval Academy 1935-39, as a result of a competitive examination, served in the U. S. Navy 1939-46, on five com- batant vessels—the USS HOUSTON, USS LEXINGTON, USS HORNET, USS THATCHER, and USS ALASKA. He was chief engineer of the battle cruiser ALASKA, and was in charge of deacti- vating the vessel after the war. Resigning his Lieutenant Commander commission August 1946, he attended the Harvard Littauer Graduate School of Public Administration and received the Masters Degree in Public Administration in June 1947. On November 1, 1947, he became the first employee and Executive Secretary of the Northwest Public Power Association at Vancouver, Washington, a position he resigned September 7, 1967, to accept appointment as Administrator, Alaska Power Administra- tion. During his 20 years as Executive Secretary, the Association expanded from 32 to 131 public and cooperative electric systems, and investment in electric facilities expanded from $400 million to $3 billion, not counting the Federal power program which expanded more than $2 billion in the Pacific Northwest in that period. Mr. Norwood served on numerous national and regional committees and boards, wrote and spoke extensively in the power and resources fields and frequently testified on legislative matters. He is the recipient of various awards and is listed in “Who’s Who in the West” and “Who’s Who in Commerce and Industry.” He is married to the former Jean Eileen Neander, and they have five children: Douglas 23, Emily 21, Valerie 17, Eric 15, and Barbara Jean 6. 4 Promote the development and utilization of the water, power, and related re- sources of Alaska. The Challenge How can the nation best develop and utilize the immense natural resources of Alaska? With respect to energy resources, Alaska pos- sesses 34 percent of the nation’s undeveloped water power plus enormous coal, natural gas, oil, and some uranium reserves, yet paradoxically, Alaska has higher electric rates than all other states. Many villages have inadequate service or none at all. For the lack of an essential ingredient of modern civilization, for the lack of a basic tool of economic progress and community services, for the lack of power to cope with the problems of the northern frontier, Alaska’s development has been hampered and the nation deprives itself of much of the potential benefits of utilizing the wealth of Alaska’s natural resources. Much of the same problems have existed in Canada and Canada’s partial but significant success in surmounting those problems deserves notice. Canada achieves much of its success in economic penetration of its resources by a coordinated marshal- ling of three tools of development; first, transporta- tion; second, mineral exploration; and third, power. Its approach to power exemplifies its approach to all three. Already a world leader in electrification and low cost power, Canada presently has under con- struction four water power ventures, each of which will exceed the hydroelectric capacity of 4,200,000 kilowatts of the Tennessee Valley Authority. Canada has under construction Churchill Falls 5.2 million kw, Nelson River 6.0 million kw, Mani- couagan-Aux Outardes 5.5 million kw, and Peace River 4.3 million kw. Each development requires over a billion dollars of investment. While itself a form of development, power con- stitutes mainly an instrument to unlock the minerals and other natural resources to achieve economic de- velopment. Progress follows the power line. First Annual Report The Honorable Stewart L. Udall established the Alaska Power Administration to “promote the devel- opment and utilization of the water, power, and related resources of Alaska.” Secretarial Order No. 2900 of June 16, 1967, transferred to APA the personnel, property, and funds of the Bureau of Reclamation in Alaska, consisting of the 30,000-kw Eklutna hydro project near Anchorage, 47 miles of transmission lines and operating staff of 17 people, and the planning staff of 22 people at the headquarters in Juneau. In its 19 years in Alaska, the Bureau of Recla- mation laid the foundation for the Alaska Power Administration, including statewide reconnaissance of Alaska development potentialities, preparation of pro- ject reports, construction of Eklutna as the first Federal hydro project in Alaska, and recommending Snettisham with 70,000 kilowatts near Juneau, now under construction by the U. S. Army Corps of Engi- neers as the second Federal hydro project. The concept of an Alaska Power Administration had been discussed in Alaska for some years as a vehicle for accelerating Alaska development. However, the Secretary’s 44-page report on Alaska Natural Re- sources of June 15, 1967, provided the specific occasion. It recommended programs in fisheries, min- erals, transportation, and power, including establish- ment of APA. The Secretary established Alaska Power Administration the next day. Another basic document affecting APA is the 1962 Army-Interior Agreement which provides that the Corps of Engineers does the final detailed design and actual construction of hydro projects in Alaska while Interior, in this case APA, has responsibility for reconnaissance and marketing studies, preparation of project reports for transmittal to Congress, and then operation of the completed projects, including mar- keting of the power. Virtually all Federal bureaus and agencies oper- ate horizontally across the nation in all states. APA operates only in Alaska and has its headquarters in Alaska’s capital city of Juneau. For example, the Order requires that APA cooperate with all agencies of government in Alaska and represent the Secretary of the Interior in Alaska on power matters. Highlights The first annual report highlights the U. S. Canada agreement for a joint upper Yukon River study; the pioneering decision to use direct current submarine cable to transmit Snettisham power; and the major policy decision and program shift to study large generating plants with interconnecting grid sys- tems, including ultimately interconnection with the West Coast power system. Also, a start has been made in the field of Alaska water studies. The report proceeds from the specific to the general, featuring six major areas: (1) Eklutna Opera- tions, (2) Railbelt Power System, (3) Snettisham Construction, (4) Southeast Alaska Power System, (5) Alaska Water Study, and (6) The International Yukon River Study. The report covers fiscal year 1968, ending June 30, 1968, but includes major events up to the printing date. Eklutna Operations The Alaska Power Administration operates and maintains the 30,000 kilowatt Eklutna hydroelectric project, 47 miles of 115,000-volt transmission lines, and four substations serving the Palmer and Anchor- age areas. Under the Eklutna Project Act of 1950, the Bureau of Reclamation designed and built the system, completing construction in 1955. Reclamation person- nel continue to provide specialized services on request on a reimbursable basis. The project has rendered yeoman service to the greater Anchorage area in eliminating power brown- outs, facilitating the reduction of electric rates, im- proving reliability of service and strengthening the economy of the area. After the Good Friday 1964 earthquake, which had its epicenter only 75 miles from the power house, the project operated during several critical months despite damage to the intake, dam, and high volt- age switchgear. Consistent with handling of other earthquake damage to public facilities, Congress enacted S. 224, treating the Eklutna damage costs of” $2.8 million as nonreimbursable. Good water experience, coupled with the origi- nal conservative estimates, and the fine cooperation of the power purchasers, have enabled the project to produce and market more than the originally esti- mated 153 million kilowatthours of marketable energy annually, This put the project well ahead of the 50- year payout just prior to the 1964 earthquake. Mean- while, low cost natural gas in the Anchorage area became available to generate electricity at less than the original Eklutna rate schedule. As a result of all these factors, it was decided to place the project back ~SUMMIT £1.5340 GOAT MOUNTAIN 9 DIA GATE SHAFT, <Eh1015 115-KV PEKLUTNA LAKE TRANSMISSION MAX.WS. 871.0-- LIN ES. ae. | ANCHORAGE- : INTAKE} “PRECAST CONDUIT. 7 STRUCTURE’ sta.27+25° ' 9'DIA CONCRETE LINED TUNNEL 23,550 FT. LONG~ 0 a POWERHOUSE” as TAILRACE CONDUIT m Schematic profile of the Eklutna Project. 6 on its original 50-year payout schedule, which reduced wholesale rates about 10 percent late in 1968, a saving of over $150,000 per year. In fiscal year 1968, the Eklutna project paid into the United States Treasury the sum of $1,715,504 bringing total revenues since 1955 to a grand total of $20,814,890. During the past year a state highway relocation project necessitated moving the main transmission line, on a reimbursable basis, which involved about 1,200 man-hours of temporary employment. Arrival of the supervisory control equipment permitted work to start on installation, looking toward an ultimate system of centralized dispatching for the Anchorage area, coupled with remote control of gen- erators and switching. Improvements continue on the ten homes at the project and one at the Anchorage substation and on the recreation and public facilities both at the power house and at Eklutna Lake. Authorized in 1950, the Eklutna Power Project was completed in 1955, the first federal hydroelectric project in Alaska. The 30,000 kilowatt plant with its 47 miles of 115 volt transmission line is operated by the Alaska Power Administration, serving the Anchorage—Palmer area. Railbelt Power System The Eklutna Project fits logically as an initial building block for the long proposed Railbelt power pool. Eklutna’s location near the Anchorage load center will permit increased use of the project for peaking duty. Utility leaders have long discussed the many benefits and economies from an interconnection of the greater Fairbanks and Anchorage areas by means of a 230,000-volt transmission line. The term “‘Rail- belt” derives from the fact that the line would follow the Alaska Railroad between the two cities. The Fed- eral Power Commission’s Alaska Power Survey and other studies reflect these discussions and confirm the attractive, long term benefits. The Railbelt power system would interconnect 75 percent of Alaska’s power loads, serving 64 percent of Alaska’s population. The APA study will project the future loads based on the many growth factors. With every year of load growth the need for the intertie increases. The feasibility study now under way and sched- uled for completion in October 1969, enjoys a number of favorable factors in timing. Completion of the Anchorage-Fairbanks high- way in 1973, should reduce construction and main- tenance costs, facilitate patrolling of the line and faster repair, and operate as an added factor in open- ing new economic opportunities along the way. Already new homes spring up along the new highway with completion of each mile. The Comsat decision to locate the Alaska Com- munications satellite ground station near Talkeetna between Anchorage and Fairbanks fits in with num- erous needs for a high grade microwave system which can also handle control circuits and communications for the Railbelt power pool system. Construction of the intertie, coupled with the availability of low cost natural gas for power produc- tion in the Beluga gas field near Anchorage, lends itself to construction of much larger generating plants with the attendant economies of scale. The concept of power pooling involves large, more economical powerplants feeding into a grid system. The combined load of the pool makes the use of larger more economical generators feasible. The Anchorage-Fairbanks line will achieve the many gains of power pooling, including the retirement of the highest cost generating plants to reserve status, sharing of reserves, reduction in idle investment, reduction in operating expense, increase in emergency backup, increase in reliability and better planning. Studies for long range power supply point toward a number of possibilities and combinations each of which would gain from the existence of the Railbelt interconnection. The authorized Bradley Lake hydro project now under restudy by the Corps of Engineers may provide stability, a source of energy, and peaking capacity at the southern end of the system, and could also pro- vide an anchor for a direct current underwater cable to Kodiak. The long studied Susitna River Basin develop- ment fits ideally into the midpoint of the Railbelt system. The Alaska Power Survey of the Federal Power Commission calls attention to the merits of both the Bradley Lake and Susitna possibilities. The Arctic Slope oil drilling activity is causing a strong upsurge in the Fairbanks economy which will certainly increase the electric load estimates of the Fairbanks area. The additional possibility of oil and gas deliveries from the Arctic Slope by way of Fair- banks may also provide a new and lower cost fuel source for Fairbanks. Both factors should enhance the feasibility and desirability of the Railbelt transmission intertie. The alternative of generation from the low cost coal at Beluga has the same advantages as Beluga natural gas and provides added assurance as a large, long term fuel source. Finally, the possibility of upper Yukon River development and high voltage interconnections be- tween the Railbelt power system and the West Coast system via the upper Yukon appears advantageous for the long run. The growing electrical loads, the favorable tim- ing of many factors, the considerable economies and consistency with a comprehensive long range power system support the railbelt power pooling concept. A strong Railbelt intertie can serve as a base line for extension of service in almost every direction. A line from Palmer to Glennallen may prove attractive in any event. Other lines may prove feasible for a sufficiently large load, such as a mine, in this highly mineralized area or the more immediate power needs for the forest products industry. The existence of six military bases in the Rail- belt area with 125,400 kilowatts of thermal generation in relatively old plants with small generators presents an important choice for future Federal investment policy. Preliminary studies favor the choice for trans- mission investment which in turn permits more eco- nomical investment in future generation by all parties concerned. Federal installations will benefit from the intertie. The Alaska Power Administration plans first priority for the Railbelt power pool study in 1969. _= Delta Junction — Healy | Mckinley 1 WATANA Vv q DEVIL CANYON Talkeetna i | | \ | @ Glennallen KLUTNA (Operating? (PRINCE WILLIAM SOUND: UNITED STATES DEPARTMENT OF THE INTERIOR ALASKA POWER ADMINISTRATION VICINITY MAP RAILBELT AREA o/! \JUNEAU DOUGLAS ISLAND GRAND ISLAND *. os ADMIRALTY y 7. J . % * “ oe 3 : ISLAND SS : m 2 3 SCALE IN MILES \ LAKE porornr STRUCTURE: S TUNNEL- SURGE TANK. ONSTRUCTION CAMP AREA TAILRACE METI SHAM Ne This map of the location of the Snettisham hydroelectric project points up the remoteness of the project. Access to the area is by water or air. The DC submarine cable will be some 45 miles in length from the powerplant to the conversion plant at Thane near Juneau. Snettisham Construction Starting late in 1972, the Alaska Power Admin- istration will operate the Snettisham project and market the power. The Corps of Engineers in June 1967, let the first construction contract for .the 70,000 kilowatt Snettisham project, 28 air miles southeast of Juneau, as the second Federal hydroelectric project in Alaska. Proposed by the Bureau of Reclamation and authorized by the Flood Control Act of 1962, the project initially will dam Long Lake and lead the waters by tunnel and penstock to a powerhouse at tidewater to begin driving two generators late in 1972. Ultimately a separate tunnel and penstock will lead water from Crater Lake to drive a third generator in 10 the same powerhouse to reach the 70,000 kw total capacity and 351.8 million kilowatthours of annual energy output. These constitute the Crater-Long Lakes Division of the Snettisham Project. Speel River is a possible future division. The original transmission plan called for a con- ventional 138,000 volt alternating current circuit to Juneau, including almost three miles of cable across Taku Inlet. Snow avalanches, rock slides, costly access roads, timber clearing, maintenance hazards, and spoiling of the scenic Inland Passage steamer lane into Juneau, loomed large in the search for a better solution. The dam at Long Lake of the Crater-Long Lakes Snettisham project is scheduled on line in 197-2. This first phase will utilize two 23,350 kilowatt generators, As additional power generation becomes necessary, the second stage, or Crater Lake phase will be constructed, using a third generator. When completed, Alaska Power Administration will operate and maintain the 70,000 kilowatt hydroelectric power plant. (Photo by U. S. Army Corps of Engineers) In April 1968, the Corps and APA announced the decision to use two 45-mile direct current sub- marine cables in a pioneering installation made possible by another innovation in technology, the use of solid state conversion equipment to change the generated alternating current to direct current for the cable run and then back to alternating current at Juneau. The Corps issued an invitation for technical proposals on December 5, 1968, in a two-step bid procedure, the second step consisting of actual price bids by late 1969. The direct current approach has attracted wide- spread interest and in turn has brought in requests for similar studies for direct current cable systems to serve Sitka, Kodiak, and Ketchikan. Snettisham experience should serve to acceler- ate the development of solid state, direct current transmission technology in the United States and elsewhere. The use of unlined tunnels represents another change in Snettisham project design. APA duties with respect to Snettisham will increase as the time approaches for actual testing and operation of the project in 1972, and marketing of the power. pCRATER LAKE POWER TUNNEL + e URGE \ TANK The development plan for the Snettisham project shows Long Lake at the present level of 815 foot altitude with the power plant located at tidewater. This first phase now under construction will deliver 46,700 kilowatts via submarine cable to Juneau. The Crater Lake tap is expected to produce 23,300 kilowatts. (Photo by U. S. Army Corps of Engineers) The first construction contract for Snettisham was let by the U. S. Army Corps of Engineers in June, 1967. The above photo was taken in August, 1968, showing the access roads, the boat basin and aircraft run- way. Snettisham is accessible only by water or by air. It lies at the head of Speel Arm, some 45 surface miles from Juneau. (Photo by U. S. Army Corps of Engincers) 12 Southeast Alaska Power System The direct current submarine cable decision at Snettisham permits the taking of a fresh look at the challenge of building a power pool for South- eastern Alaska, using a step-by-step, building block approach. Many studies have demonstrated the high cost of harnessing the numerous small mountain lakes of Southeast Alaska as isolated hydroelectric projects. Diesel engine plants, which now provide much of the power, likewise do not provide the answer except in the smaller, isolated villages and then only at high cost. Overhead transmission lines present difficult construction and maintenance problems with conse- quent high costs. A low cost source of power such as the Yukon- Taiya proposal, providing energy at three to four mills per kilowatthour, would create a strong incentive to use direct current submarine cables to displace present diesel plants which produce energy at a cost of 15 to 25 mills in the larger cities. Cooperative arrangements with British Columbia might also provide attractive alternatives and some alternatives for mutual benefits. More significantly, low cost power can greatly assist in the development of the timber, mineral, and other resources of Southeast Alaska. Southeast Alaska has the land area of the State of Maine. The world-famous steamer lané of the Inland Passage threads its way among the beautiful, heavily forested islands and into the majestic fjords with their cascading glaciers of the Coast Range. The scenic grandeur attracts an ever-growing host of tourists. Preservation of scenic values must have a very high priority. The Alaska Power Administration planof study will begin with the Snettisham system, which has considerable surplus power in the early years. The City of Sitka has requested a cable interconnection. Acable from Prince Rupert to Ketchikan would represent a third building block. Many other possi- bilities deserve investigation, including cooperation with British Columbia. The Sitka cable study has early priority, fol- lowed by the Ketchikan request. APA will prepare a long range load forecast for both the Southeast Alaska Power System and as part of the upper Yukon River studies. Alaska Water and Related Resources Studies The Secretarial Order directs Alaska Power Administration to ‘“‘promote the development and utilization of water, power, and related resources of Alaska.” Thus, APA has responsibilities for broad range water and other related resources planning re- sponsibilities as well as for power planning. This year in accordance with the Water Re- sources Planning Act of 1965, the Water Resources Council asked the Department of the Interior to serve as lead agency in preparing a preliminary plan of study and budget estimates for an Alaska water and related land resources study. The Secretary of the Interior delegated this responsibility to the Alaska Power Administration. During May, June, and July 1968, some 30 State and Federal agency representatives served as an ad hoc work group which submitted the plan of study and budget estimates on August 1, 1968. These call for a Type 1 comprehensive frame- work study of Alaska water and related land resources 13 similar to 19 other studies blanketing the Nation. The study would require three years and must await financing. It provides for 18 sub-studies, each headed by a State or Federal line agency, for example, APA will make the long range power study. The law encourages State-Federal teamwork and coordination. To facilitate full participation by the State of Alaska, Governor Walter Hickel issued an Executive Order designating the Commissioner for Natural Resources as the representative and coordina- tor for the State on water matters. The Alaska Water Study concerns resources of great importance to the Nation. Alaska possesses 40% of all the fresh water under the United States’ flag. Annual outflow from the State totals 800,000,000 acre-feet, including about 150,000,000 acre-feet that originates in Canada. This abundance does not mean that Alaska has no water problems. Many housing loans get turned down because of inability to meet water or sewer | | | | | ___|— UNITED STATES DEPARTMENT OF THE INTERIOR ALASKA POWER ADMINISTRATION SOUTHEAST ALASKA AREA 14 COASTAL AREAS 20: BRISTOL BAY COASTAL fy AREAS, ALASKA PENINSULA, ee ALEUTIAN ISLANDS 36 Stine ° cr Distribution of the Aloska Woter Crop. MAK @ AFOGNAK ISLANDS Clan KENAI PENINSULA 8 COOK INLET (Millions of Acre—Feet) Alaska’s 800,000,000 acre-foot of annual runoff, including 150,000,000 from Canada represents 40 percent of the fresh water available to the nation. In contrast to national shortages and pollution, the Alaska Power Administration studies concern problems of managing the water riches under a wide range of climatic conditions. standards or on account of high water table or flood plain location, frost heaving, and other water diffi- culties. The Alaska water study will emphasize the best use of water for economic development, preservation of resources for best future use, and the overriding criteria of well-being of the people. ; Projections will compare supply and demand for 1980, 2000, and 2020. Other APA water activity includes participation in the Inter-Agency Technical Committee for Alaska which prepared the Alaska chapter of the recent WRC report, “The Nation’s Water Resources,” and also prepared a 10-year plan for climatologic and hydro- logic data. APA participates in the Matanuska-Susitna Bor- ough comprehensive plan study. Pending the approval of a budget for the Alaska water and related land resources study, the work group will identify and analyze water problems and begin to outline the comprehensive framework. International Yukon River Study The start of the international study of the upper Yukon River serves as a capstone for the first year of the Alaska Power Administration. It constitutes a desirable step in the coordination of Canadian and United States considerations of development of the water and related resources of the upper Yukon River and adjoining areas. The initial study, scheduled for completion late in 1969, will focus on the “power market potential” premised on the availability of hydroelectric power at three to four mills per kilowatt-hour. 15 A virtual twin of the Columbia River, the Yukon has an average annual runoff of 216,000 cubic feet per second, making it the fifth largest river of North America, following the Mississippi, Mackenzie, St. Lawrence, and Columbia. The Yukon originates in northern British Colum- bia in a group of lakes at an elevation of about 2,100 feet, the nearest of which lies next to the Coast Range barely 20 miles from tidewater. Thus, the opportunity presents itself of a dam on the upper Yukon to store the water and then lead HOOTALINQUA DAMSITE (EL 100) SK AGWAY YUKON-TAIYA PROJECT The large hydroelectric potential of the Yukon River could result in the building of several dams. The most attractive possibility involves a dam at Miles Canyon near Whitehorse with the water brought through the coast range via tunnel and dropped 2,100 feet to a powerhouse on the Taiya River near Skagway. them through the Coast Range by means of a 17-mile tunnel and drop them almost 2,000 feet into a power- house near Skagway just above tidewater. Probably the most attractive among the alter- natives, the Yukon-Taiya Project lends itself to stage development from an initial 700,000 kilowatts to ultimate 4,000,000 kilowatts. The ultimate energy output of 25 billion kilowatthours per year would exceed that of Grand Coulee Dam. The project lies centrally near an ice-free, deep- water port with access to one of the richest mineral- ized areas of North America some 2,000 miles long and 600 miles wide. It lies at a point where British Columbia, Yukon, and Alaska meet. Like the two sides of the coin, the development of power and minerals go together, the power as the means and the mining and metallurgical processing of ores as the objective. 16 The Yukon-Taiya Project, with virtually no transmission cost, could best serve electric furnace and other processing of ores in the Haines-Skagway area. Transmission lines to mining areas appear attract- ive economically. Mining loads could complete the loading of the initial development of 700,000 kilowatts. A high voltage transmission line about 500 miles long could intertie Skagway with the B. C. Hydro transmission system so that any temporary surplus power could reach the entire West Coast power sys- tem. Ultimately, a 600-mile line from Skagway to the Railbelt area could complete the extension of the West Coast power system to Anchorage and Fairbanks. The study should take note of transportation possibilities as well as mineral exploration and power development. ve a BIG SALMON DAM SITE a ooraLinqua, DAM SITE: MILES CANYON, ‘DAM SITE: 7 cepa (AK fA cay, nl rasisw Lane wsectar VICINITY Map $9 pp __9_»__» SCALE, OF MILES UNITED STATES. DEPARTMENT OF THE INTERIOR ALASKA POWER ADMINISTRATION YUKON-TAIYA PROJECT PROJECT MAP 17 DRAINAGE| AVERAGE DAM SITE AREA ANNUAL (Saver RUN-OFF Acre — Feet) Atlin Loke 2,520 2,310,000 1 Miles Canyon 7,800 Tealin River 11,700 Hootelingue 25,700 Big Solmon 29, 700 18,100,000 © 1951 10 1965, Atlin Lene 193210 1965, Yukon River 1949 10 1960, Tealin River The University of Alaska, located at College near Fairbanks, with its rapidly expanding research center, has a standing contract with the Alaska Power Administration for services. The University’s Institute of Social, Economic and Government Research provides resource material for agencies involved in studies concerning the development of Alaska. Related Activities APA participates in many interagency activities, has representation on many committees, and maintains close working relations with State officials. Trade delegations, students, and many others request assist- ance or information. The Administrator or staff mem- bers addressed most of the major conventions held in the State the past year. The Federal Power Commission’s Alaska Power Survey involved several task forces with APA repre- sentation. Due for publication early in 1969, the Survey will project loads and resources to 1985, and serve as a useful guide. The Federal Field Committee for Development Planning in Alaska has produced many reports useful 18 for power planning purposes. APA participates. APA serves on the Department of the Interior’s Alaska Field Committee which serves as a useful for- um for communication and coordination, meeting usually on a quarterly basis. APA serves as lead agency for the Matanuska- Susitna Borough agricultural study due for completion in 1969. The review of 276 powersite reservations should result in the revocation of many reservations thus releasing the land for other uses. Involving several Federal and State agencies, the review may require five years. Memoranda and articles involving much research have been prepared as requested. Reduction in Electric Bills For Home Use in Alaska and U.S. 1960-1967 in Cents per KWH Cents per KWH Although Alaskans pay the highest rates in the nation for their electricity, that rate is progressing steadily downward. As lower generating costs become a reality and increased volume of use continues, the downward trend will continue. Alaska Electrical Statistics The Alaska Power Administration has made a start in collecting statistics on the electrical industry in Alaska. The Rural Electrification Administration annual reports provide the most exact information. REA has approved about $125 million in loans in Alaska, about 80% of which has been advanced. The 12 REA bor- rowers provide more than half of the public utility service of the State. The Edison Electrical Institute has included Alaska in its annual statistics starting with 1960, the first full year after statehood. EEI provides the first statewide electric utility statistics on Alaska and APA is cooperating with EEI on improvement of data. APA has adopted 1960 as the base year for statistics and for measuring progress. 19 Incidental to the Alaska Power Survey of the Federal Power Commission, APA has prepared lists of generating plants, Federal and non-Federal for Alaska, including industrial plants. The electric utilities in Alaska have an installed capacity of 285,000 kw which includes the Eklutna Project. Non-utility installations, including military and other Federal services, total approximately 259,000 kw. The Federal Government has financed most of the electric power investment in Alaska, probably about 75% of some $275 million. Non-Federal investment includes the two pulp mill generating plants at Ketchikan and Sitka, other cannery, mining, industrial, and construction plants, State installations, several private utilities, and about $40 million in municipal electric systems. Federal plants include 132,000 kw of capacity of military installations, the 30,000 kw Eklutna plant and numerous FAA, BIA, Coast Guard, AEC, and other stations, mostly diesels. REA loans add about $100 million to this total of Federally financed plants. The Alaska Village Electric Cooperative, formed in 1967, as the newest REA borrower, will use a $5.2 million loan to install diesel plants in 59 villages to serve some 20,000 Eskimos, Aleuts, and Indians. AVEC has also obtained a grant from the Office of Economic Opportunity to train native diesel opera- tors. The State of Alaska, the U. S. Bureau of Indian Affairs, and the U. S. Department of Labor are par- ticipating in the AVEC program. The statistics begin to serve the purpose of measuring progress. The EEI data for 1960 and 1967, shows that the Alaska statewide average residential price of electricity has come down from 4.32 to 3.37 cents per kilowatt-hour. Alaska has a higher residen- tial price for electricity than all other states and this will continue to be true for at least the next five years. Nonetheless, noteworthy progress can be seen in the lower generating costs for the Anchorage area involving almost half of the State population. Success- ful promotion of electric heating of homes in the Fairbanks, Anchorage, and Metlakatla areas point the way to volume sales per consumer which reduce unit costs. Lower generating costs coupled with power pooling can reduce the wholesale price of power. In turn, the volume sales per home can bring down retail- ing or distribution costs. These two factors should bring Alaska’s average residential price of electricity under 2 cents per kilowatthour within 20 years. This allows for the high rates which will prevail as more small villages receive electricity from high-cost diesel generation and as statistics from many existing village electric systems become available. Careful planning of future electric investments, Federal and non-Federal, can assist in achieving better service, lower wholesale rates and the volume sales which can bring lower prices to the consumer. Progress to date reflects the dedicated efforts of electrical leaders and workers in surmounting many difficult problems. Minerals In evaluating Alaska development potentialities, and particularly in making long range electric load forecasts, the Alaska Power Administration must necessarily be concerned with the prospects for major metallic and non-metallic mineral developments which could support an industrial economy. Alaska’s mineral potential, other than oil and gas, probably represents the largest gap and lag in economic development. The practicality of mining and processing of Alaska mineral deposits, when identified and evalu- ated, is indicated by the mineral developments being accomplished in Canada just across the border from Alaska. In 1967, Canada enjoyed $4.4 billion, or 7.1% of its gross national product from minerals, including oil and gas, and this figure will rise considerably. Mineral exports of $3.2 billion earned 28.5% of all foreign exchange due to exports. Its mineral industry employs a million workers or 15% of the labor force, and accounts for an average of 18% of Federal cor- porate income taxes. Mineral production greatly strengthens Canada’s balance-of-payments situation, while for the United 20 States, the importation of mineral products represents a substantial drain in the balance-of-payments prob- lems. Canada greatly assists the mineral industry with a broad program of mineral identification and evalua- tion. In recent years, the incentive programs have em- phasized each step from prospecting up to the point of actual production. These programs encourage and assist the individual prospector and small operator while at the same time providing substantial assistance to large firms to bring in large new mines. The effectiveness of these programs is indicated by the fact that Yukon and Northwest Territories recorded 36,000 new mineral claims in 1967, up from 5,800 in 1963. The prospectors assistance program provides up to $900 per year to stake individual prospectors. Each of the northern territories receives $30,000 for this program. The northern mineral exploration assistance program provides loans up to 40% of an approved exploration program for geology, survey, and drilling. These loans are not repaid if the mine does not suc- ceed. Production of crude oil in Alaska, which doubled in volume in 1967, over the previous year, doubled again during 1968, according to the Alaska office of mineral resources. The State’s mineral production in 1968, totaled $212.1 million as compared with $134.1 million in 1967. Included in the total figure are $178.7 million of crude oil and almost $3 million of natural gas. Tote trails, access roads, permanent roads, rail- roads, airstrips, and airports receive many forms of assistance, somewhat like U. S. forest access roads. Canada generally provides power to the oper- ating mines when feasible. It takes about ten years to move from the prov- ing of an ore body to actual production. 21 The Secretarial Report of June 16, 1967, pro- posed a $50,000,000 five-year minerals exploration and research program for Alaska. It recognized the importance of furnishing the maximum incentives for development of Alaska mineral deposits. We endorse those findings and recommen- dations. Historical background Bureau of Reclamation Activities in Alaska 1946-1967 Prior to World War II, the Department of the Interior gave serious consideration to ways and means of developing Alaska’s natural resources. After the War in 1946, Secretary Julius A. Krug again gave serious consideration to the development of Alaska. About this time, the Aluminum Company of America investigated the construction of an aluminum reduction plant near Skagway, Alaska, contingent on the availability of a substantial amount of low cost power. On October 14, 1947, Secretary Krug author- ized Messrs. L. N. McClellan, Assistant Chief Engineer, and L. G. Puls, Civil Engineer of the Office of the Chief Engineer, Bureau of Reclamation, to study the power potential in the Skagway area. Their January 1948 report entitled ‘““Report on the Potential Hydro- electric Power of Southeast Alaska and the Yukon Territory,” discussed primarily the Taiya River Power Project, a trans-mountain diversion of the waters of the Yukon River above Whitehorse, Yukon Territory, to a powerplant on the Taiya River near Skagway. The Interior Department Appropriation Act of June 29, 1948, provided $150,000 for the Depart- ment of the Interior to conduct engineering and economic investigations for the development and utilization of water power resources of Alaska. In July 1948, Secretary of the Interior Julius A. Krug established the Alaska Investigations Office of the Bureau of Reclamation in Juneau, which became the Alaska District Office in 1950. It operated under this name until by Secretarial Order No. 2900, dated June 16, 1967, Secretary of the Interior Stewart L. Udall established the Alaska Power Administration as a bureau of the Department of the Interior with full responsibility for Reclamation’s former programs in Alaska. 1948-1966 Commissioner of Reclamation Michael W. Straus appointed Joseph M. Morgan to head up the new Alaska office as District Manager in July 1948. Mor- gan immediately initiated a statewide reconnaissance to determine the potential for the development of water resources in the Territory. This resulted in pub- lication of the 287-page “Reconnaissance Report on the Potential Development of Water Resources in the Territory of Alaska.” 22 His first major project was the investigations of the Eklutna Project near Anchorage on which previous studies had been conducted by the Geological Survey in cooperation with the City of Anchorage. These investigations led to authorization in 1950 and com- pletion in 1955 of the 30,000 kilowatt hydroelectric plant to serve the Anchorage and Palmer areas with urgently needed power. Operation and maintenance of the project is now the responsibility of APA. Investigations by the Bureau of Reclamation led to the development of two projects by other inter- ests. The City of Sitka built the Blue Lake Project as a 6,000 kilowatt hydroelectric plant. The Chugach Electric Association built the Cooper Lake Unit of the Lawing Project on the Kenai Peninsula as a 15,000 kilowatt hydroelectric plant, completed in 1961. Hydroelectric sites throughout the State were investigated. Traveling by float planes, helicopters, boats, and “cat trains,”’ engineers and geologists visited all sites of significance. All but 76 have been elimi- nated from further consideration. In 1949, the United States and Canada estab- lished a Joint Engineering Board to investigate the Yukon-Taiya Project, referred to in the McClellan-and Puls report of 1948, Joint investigations carried out in 1950 were terminated at the request of the Cana- dian Government. Four years of investigations of the Devil Canyon Project on the Susitna River culminated in a feasibility report on the 580,000-kilowatt hydroelectric devel- opment to serve both the Anchorage and Fairbanks areas. Although approved by the Secretary March 25, 1961, no further action was taken. Investigations of the Snettisham Project, 42 miles by water southeast of Juneau, started in 1958, led to authorization of the Crater-Long Lakes Division of the Snettisham Project in the Flood Control Act of 1962. It is under construction by the Corps of Engi- neers and will become the responsibility of APA for operation and maintenance when completed in 1972. The Interior-Army Agreement of March 1962, between the Secretary of the Army and Secretary of the Interior, assigned to Interior the responsibility for providing leadership in undertaking comprehensive studies for natural resource development in Alaska. It assigned to the U. S. Army Corps of Engineers respon- sibility for engineering design and construction of all water resources projects, including hydroelectric pow- er projects, in Alaska. The Good Friday earthquake of 1964 did some damage to the Eklutna Project, requiring emergency repairs. The intake structure was displaced allowing silt and gravel to partially fill the 4.5 mile tunnel. This foreign material passing through the turbines partially blocked the tailrace channel at the plant. Headquarters personnel assisted in the emergency repairs. Following the spring breakup and thaw, it was discovered that the dam and spillway at the outlet of Eklutna Lake had been damaged beyond repair. The following year, the intake structure and dam were replaced. 1967-1968 On June 16, 1967, by order of the Secretary of the Interior, the Alaska District, Bureau of Reclama- tion, was redesignated the Alaska Power Administra- tion as a bureau within the Department of the Interior with full responsibility for Reclamation’s former programs in Alaska. Appointed by Secretary Udall, Gus Norwood, formerly Executive Secretary of the Northwest Public Power Association, was sworn in as Administrator of APA on September 7, 1967, at Anchorage, by Kenneth Holum, Assistant Secretary for Water and Power, Department of the Interior. Joe Morgan Daryl Roberts 23 A preliminary report of a proposed railbelt transmission system to interconnect the electric gen- eration plants in the Anchorage area with those of the Fairbanks area has indicated that feasibility studies are justified. Through the Department of State, an agreement of December 19, 1968, has been achieved with Canada for a study and an informal exchange of data on the International Yukon-Taiya Project. Summary During the last two decades the Alaska District Office of the Bureau of Reclamation has been under the leadership of four District Managers. Following Joe Morgan in 1953 was R. W. Jennings, in turn fol- lowed by Daryl L. Roberts in 1955, and George N. Pierce in 1963. Under their leadership, field investi- gations on 19 hydroelectric projects in Alaska resulted in 53 planning reports. Feasibility grade investigations followed on eight of the projects. The Eklutna Pro- ject has been constructed and the Crater-Long Lakes Division of the Snettisham Project is under construc- tion. In addition, the Blue Lake Project was con- structed by the City of Sitka, and the Cooper Lake Unit of the Lawing Project was built by the Chugach Electric Association, an REA Cooperative in Anchor- age. Robert W. Jennings George N. Pierce International Notes Exchanged For Yukon-Taiya Study No. 482 The Embassy of the United States of America refers to the discussions which have been held between the United States Department of the Interior and the Department of Energy, Mines and Resources of Canada covering possible studies of the upper Yukon water- shed. These discussions have also covered possible exchanges of data and views as to the storage of wat- ers of the upper Yukon watershed, diversion thereof in the region for the generation of hydroelectric power and the utilization of such electrical energy for the mutual benefit of Canada and the United States. The United States Government agrees that the initial and primary focus of the studies shall relate to the power market potential. It is intended that the studies be jointly carried on with each government responsible for the funding of its respective activities. These initial studies of market potentials are considered to be essential prerequisites to further studies and discussions of national policy which may be merited, and to any negotiations which may be indicated. It is proposed to proceed informally with re- sponsibility for the United States participation to be assigned to the Alaska Power Administration, an agency of the Department of the Interior of the United States Government. The Embassy wishes to propose that this Note, together with the concurrence of the Department of External Affairs, constitute an informal arrangement for the necessary studies and exchange of data and views. Embassy of the United States of America, Ottawa, December 17, 1968. No. X-718 The Department of External Affairs has the honour to refer to the Embassy’s Note No. 482 of December 17, 1968, concerning a proposal to provide for an exchange of data and views in respect of the storage of waters of the upper Yukon watershed, and diversion thereof in the region for the generation of hydro-electric power and the utilization of such elec- trical energy for the mutual benefit of Canada and the United States. The Government of Canada agrees with the pro- posal as specified in the Embassy’s note that such exchange of data and views shall relate to the potential market for power that might be generated. Responsi- bility for Canadian participation in the studies will be assigned to the Department of Energy, Mines and Resources. The Department therefore has the honour to concur in the proposal that the Embassy’s note and this reply shall constitute an informal arrangement for the exchange of data and views on this matter. The Department of External Affairs avails itself of this opportunity to renew to the Embassy of the United States of America the assurances of its highest consideration. Ottawa, December 19, 1968 PRESS RELEASE It was arinounced today that the Governments of Canada and the United States have agreed to ex- change information on the power market potential of possible future hydro electric developments in the area of the upper Yukon watershed. The proposed exchange of data and views will assist both Govern- ments in assessing power marketing possibilities which could justify further studies of the power development potential of the upper Yukon watershed including alternative water diversion schemes to supply power 24 developments in either British Columbia or Alaska. The Department of Energy, Mines and Resources in cooperation with the Department of Lands, Forests and Water Resources of the Province of British Colum- bia will coordinate the study in Canada while the Alaska Power Administration, an agency of the United States Department of the Interior, has been given responsibility for United States participation in this assessment of the power market potential. December 19, 1968. Text of Order Creating Alaska Power Administration SECTION 1 Purpose. This order, issued pursuant to the authority of the Secretary of the Interior under Reorganization Plan No. 3 of 1950. 5 U.S.C. 133z-15 (note), establishes the Alaska Power Administra- tion as a Bureau of the Department of the Interior, defines its organization and functions, and provides for the related delegation of authority of the Secretary of the Interior under various acts of Congress, SEC, 2 Organization. The head of the Alaska Power Administration shall be the Administrator, who shall administer the functions of the Administration sub- ject to the supervision and direction of the Assistant Secretary— Water and Power Development. SEC. 3 Functions. The functions of the Alaska Power Administration are as foliows: (a) Promote the development and utili- zation of the water, power, and related resources of Alaska; (b) Operate and maintain the Eklutna project and the Crater-Long Lakes divi- sion of the Snettisham project; (c) Dispose of Federal power and energy not needed for project or agency purposes in such manner as to encour- age the most widespread use thereof at the lowest possible rates to consumers consistent with sound business principles; (d) Cooperate with all agencies of government in ‘Alaska; including the Federal Field Committee for Develop- ment Planning in Alaska, established by Executive Order 11182 (Oct. 2, 1964); (e) Investigate, plan, and submit to the Secretary recommendations for Fed- eral projects and programs; (f) Represent the Secretary of the In- terior in Alaska on power matters. SEC. 4. Delegation of Authority. The Administrator, Alaska Power Adminis- tration, is authorized, except as provided in 200 DM 1.4 and 1.5 and in section 5 of this order to exercise the authority of the Secretary of the Interior pursuant to the following, insofar as they relate to activities within the State of Alaska: (a) The Eklutna Project Act of July 31,1950,64 Stat. 382, as amended: (b) Section 204 of the Flood Control Act of 1962 (Crater-Long Lakes division, Snettisham project), 76 Stat. 1193; (c) Sections 5 and 8 of the Flood Con- trol Act of 1944, 58 Stat. 890, 16 U.S.C. 825s, 58 Stat. 891, 43 U.S.C. 390; (d) The Act of August 9, 1955, 69 Stat. 618 (Alaska water resources investiga- tions); (e) Appropriation acts or other statu- tory provisions respecting Investigations relating to projects for the development and utilization of water, power, and re- lated resources in Alaska; (f) Land and Water Conservation Act of 1965 (78 Stat. 897) and Executive Or- der 11200 (30 F.R. 2645). The authorities of the Administrator under this Act and Executive order shall be restricted to the following; (1) The authority to designate areas under his jurisdiction at which recreation fees will be charged as specified by sec- tions 1, 2, and 3 of Executive Order 11200. (2) The authority to post such desig- nated areas as specified by section 4 of Executive Order 11200. (3) The authority to select from the fees established by 43 CFR Part 13 (30 F.R. 3265) the specific fees to be charged at the designated areas in accordance with section 5(a) of Executive Order 11200. (g) Section 7(c) of the Federal Water Project Recreation Act of July 9, 1965 (79 Stat. 213). SEC. 5 Limitations. Excepted from the foregoing delegation is the authority to: (a) Act for the Secretary of the In- terior in approving and adopting project feasibility reports as the Secretary’s pro- dosed reports or as his reports to the President and to the Congress; (b) Promulgate rate schedules or fix rates for the sale of electric power and energy; (c) Make finding and reports to the Congress respecting minerals, as pro- vided in section 1 of the Eklutna Project Act, supra, as amended; (d) Make the report to the Congress upon the feasibility and desirability of transferring the Eklutna Project to pub- lic ownership and control in Alaska, as provided in section 4 of the Eklutna Project Act, Supra. SEC. 6 Contracts. The Administrator may, without Secretarial approval, con- summate contracts for the sale, inter- change, purchase, or wheeling of power and energy, if such contracts are com- posed entirely of standard provisions which have previously received Secre- tarial approval. If such a contract is not composed entirely of standard provisions, the Administrator may only execute the contract subject to Secretarial approval. SEC. 7 Revocation. Delegations of au- thority previously made to the Commis- sioner of Reclamation are revoked to the extent they are inconsistent with the delegations herein. ‘SEC 8 Transfer. Effective at the close of business on the day of the signing of this order, all personnel, property, funds, and equipment formerly employed by the Bureau of Reclamation in the State of Alaska are transferred to Alaska Power Administration. STEWART L. UDALL Secretary of the Interior. June 16, 1967 Proximity to Anchorage makes Eklutna Lake a popular recreational attraction for the populace of Alaska’s largest city. The Alaska Power Administration in cooperation with the State of Alaska provides and maintains picnic and camping facilities. UNITED STATES POSTAGE AND FEES PAID DEPARTMENT OF THE INTERIOR U.S. DEPARTMENT OF THE INTERIOR ALASKA POWER ADMINISTRATION THIRD CLASS P. O. BOX 50 JUNEAU, ALASKA 99801 OFFICIAL BUSINESS