[Federal Register Volume 59, Number 77 (Thursday, April 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9660]


[[Page Unknown]]

[Federal Register: April 21, 1994]


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DEPARTMENT OF ENERGY
Western Area Power Administration

 

Salt Lake City Area Integrated Projects--Proposed Firm Power Rate

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Salt Lake City Area Integrated Projects Firm 
Power Rate Adjustment.

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SUMMARY: The Western Area Power Administration (Western) is proposing a 
rate adjustment for firm power for the Salt Lake City Area Integrated 
Projects (SLCA/IP). The power repayment study and other analyses 
indicate that the proposed rate for firm power is necessary to provide 
sufficient revenue to pay all annual costs (including interest 
expense), plus repayment of required investment, within the allowable 
time period. This rate adjustment is a result of inclusion of 
construction work in progress, the fiscal year (FY) 1994 and 1995 
congressional budgets, more recent projections of project investments 
and interest, and updated operations and maintenance (O&M) expenses. 
Budgets for Western's O&M expenses do not exceed the FY 1993 actual O&M 
expenditures, compounded at 2 percent per year. The rate impact is 
detailed in a rate brochure to be distributed to all interested 
parties. The proposed rate for firm power is expected to become 
effective December 1, 1994.
    The existing SLCA/IP firm power rate is comprised of an energy 
charge of 8.40 mills per kilowatthour (mills/kWh) and a capacity charge 
of $3.54 per kilowatt/month ($/kW/month), calculated at a 58.2 percent 
load factor.
    The proposed firm power rate consists of an energy charge of 9.10 
mills/kWh and a capacity charge of $3.86/kW/month, calculated at a 
58.2-percent load factor. These components result in a composite rate 
of 20.44 mills/kWh, which may also be expressed as a combined rate of 
18.18 mills/kWh. A combined rate is influenced by a predetermined load 
factor whereas a composite rate is influenced by the relationship 
between the project revenue requirement and the corresponding period's 
available energy. The proposed composite rate is an increase of 9.3 
percent over the existing composite rate.
    The Assistant Secretary for Conservation and Renewable Energy, U.S. 
Department of Energy (DOE), approved the existing rate schedule on an 
interim basis on August 10, 1992 effective October 1, 1992. (57 FR 
36981, August 17, 1992; and 57 FR 47073, October 14, 1992). Federal 
Energy Regulatory Commission (FERC) confirmed and approved the rate 
schedule on a final basis on February 18, 1993. (62 FERC Para. 61,159).
    The following table compares the SLCA/IP existing rates with the 
proposed rates:

           Comparison of Old and New SLCA/IP Firm Power Rates           
------------------------------------------------------------------------
                                                              Percentage
             Type of service              Existing  Proposed    change  
------------------------------------------------------------------------
Energy rate (mills/kWh).................      8.40      9.10       8.33 
Capacity rate ($/kW/month)..............     $3.54     $3.86       9.04 
Combined rate (mills/kWh)...............     16.72     18.18       8.73 
Composite rate (mills/kWh)..............     18.70     20.44        9.3 
------------------------------------------------------------------------

    Since the proposed rates constitute a major rate adjustment as 
defined by the procedures for public participation in general rate 
adjustments, as cited below, both a public information forum and a 
public comment forum will be held. After review of public comments, 
Western will recommend the proposed rates for approval on an interim 
basis by the Deputy Secretary of DOE.

DATES: The consultation and comment period will begin with publication 
of this notice in the Federal Register and will end not less than 90 
days later, or July 19, 1994, whichever occurs later. A public 
information forum will be held at 1:30 p.m. on May 24, 1994, at the 
Holiday Inn, 999 South Main Street, Salt Lake City, Utah. A public 
comment forum at which Western will receive oral and written comments 
will be held at 1:30 p.m. on June 30, 1994, at the Holiday Inn, 999 
South Main Street, Salt Lake City, Utah.
    Written comments should be received by Western by the end of the 
consultation and comment period to be assured consideration and should 
be sent to the address below.

FOR FURTHER INFORMATION CONTACT: Area Manager, Salt Lake City Area 
Office, Western Area Power Administration, P.O. Box 11606, Salt Lake 
City, UT 84147, (801) 524-5493.

SUPPLEMENTARY INFORMATION: Power rates for the SLCA/IP are established 
pursuant to the Department of Energy Organization Act (42 U.S.C. 7101 
et seq.) and the Reclamation Act of 1902 (43 U.S.C. 372 et seq.), as 
amended and supplemented by subsequent enactments, particularly section 
9(c) of the Reclamation Project Act of 1939 (43 U.S.C. 485h(c)), and 
other acts specifically applicable to the project systems involved.
    By Amendment No. 3 to Delegation Order No. 0204-108, published 
November 10, 1993 (58 FR 59716), the Secretary of Energy delegated (1) 
the authority to develop long-term power and transmission rates on a 
nonexclusive basis to the Administrator of Western; (2) the authority 
to confirm, approve, and place such rates into effect on an interim 
basis to the Deputy Secretary; and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand, or to 
disapprove such rates to FERC. Existing DOE procedures for public 
participation in power rate adjustments (10 CFR Part 903) became 
effective on September 18, 1985 (50 FR 37835).

Availability of Information

    All brochures, studies, comments, letters, memorandums, and other 
documents made or kept by Western for the purpose of developing the 
proposed rate for firm power are and will be made available for 
inspection and copying at the Salt Lake City Area Office, located at 
257 East 200 South, Suite 475, Salt Lake City, UT 84111-2048.

Regulatory Flexibility Analysis

    Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et 
seq.), each agency, when required by 5 U.S.C. 553 to publish a proposed 
rule, is further required to prepare and make available for public 
comment an initial regulatory flexibility analysis to describe the 
impact of the proposed rule on small entities. In this instance, the 
initiation of the SLCA/IP firm power rate adjustment is related to 
nonregulatory services provided by Western at a particular rate. Under 
5 U.S.C. 601(2), rules of particular applicability relating to rates or 
services are not considered rules within the meaning of the act. Since 
the SLCA/IP firm power rate is of limited applicability, no flexibility 
analysis is required.

Determination Under Executive Order 12866

    DOE has determined that this is not a significant regulatory action 
because it does not meet the criteria of Executive Order 12866, 58 FR 
51735. Western has an exemption from centralized regulatory review 
under Executive Order 12866; accordingly, no clearance of this notice 
by the Office of Management and Budget is required.

Environmental Evaluation

    In compliance with the National Environmental Policy Act of 1969, 
42 U.S.C. 4321 et seq.; Council on Environmental Quality Regulations 
(40 CFR Parts 1500-1508); and DOE NEPA Regulations (10 CFR Part 1021), 
Western has determined that this action is categorically excluded from 
the preparation of an environmental assessment or an environmental 
impact statement.

    Issued in Golden, Colorado, April 13, 1994.
William H. Clagett,
Administrator.
[FR Doc. 94-9660 Filed 4-20-94; 8:45 am]
BILLING CODE 6450-01-P