FERC proposed new method for calculating land use charges for Alaska hydroelectric projects
The Federal Energy Regulatory Commission (FERC) recently proposed a change to the method used to determine annual federal land use charges for hydropower projects in Alaska.
The proposal would replace the regional per-acre land value with one of a statewide average per-acre land value.
FERC issued a Notice of Proposed Rulemaking (NOPR) seeking comment on the issues. Comments are due 60 days after publication in the Federal Register.
The commission issued a Notice of Inquiry in November 2016 asking for input on its method for calculating the charges.
In 2013, FERC revised its methodology for calculating rental rates for hydropower plants on government lands. The formula includes 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.
