[Federal Register Volume 59, Number 113 (Tuesday, June 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14438]


[[Page Unknown]]

[Federal Register: June 14, 1994]


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DEPARTMENT OF ENERGY
Southwestern Power Administration

 

Integrated System

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of proposed extension of integrated system power rates 
and opportunities for public review and comment.

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SUMMARY: The Current Integrated System Rates were approved by the 
Federal Energy Regulatory Commission (FERC) on September 18, 1991, 
[EF91-4011-000, 56 FERC 61, 398]. These rates were effective October 1, 
1990, and will expire September 30, 1994. The Administrator, 
Southwestern, has prepared Current and Revised 1994 Power Repayment 
Studies for the Integrated System which show the need for a minor rate 
adjustment of $726,051 (0.8 percent increase) in annual revenues. In 
accordance with Southwestern's rate adjustment threshold, dated June 
23, 1987, the Administrator, Southwestern, may determine, on a case by 
case basis, that for a revenue decrease or increase in the magnitude of 
plus-or-minus two percent, deferral of a formal rate filing is in the 
best interest of the Government. Also, the Deputy Secretary of Energy 
has the authority to extend rates, previously confirmed and approved by 
FERC, on an interim basis, pursuant to 10 CFR 903.22(h) and 903.23(a). 
In accordance with DOE rate extension authority and Southwestern's rate 
adjustment threshold, the Administrator is proposing that the rate 
adjustment be deferred and that the current rates be extended for a 
one-year period effective through September 30, 1995.

DATES: Written comments are due on or before June 29, 1994.

ADDRESSES: Written comments should be submitted to the Administrator, 
Southwestern Power Administration, U.S. Department of Energy, P.O. Box 
1619, Tulsa, Oklahoma 74101.

FOR FURTHER INFORMATION CONTACT: George C. Grisaffe, Assistant 
Administrator, Office of Administration and Rates, Southwestern Power 
Administration, Department of Energy, P.O. Box 1619, Tulsa, Oklahoma 
74101, (918) 581-7419.

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by 
an Act of the U.S. Congress, Department of Energy Organization Act, 
Public Law 95-91, dated August 4, 1977, and Southwestern's power 
marketing activities were transferred from the Department of the 
Interior to the Department of Energy, effective October 1, 1977.
    Southwestern markets power from 24 multiple-purpose reservoir 
projects with power facilities constructed and operated by the U.S. 
Army Corps of Engineers. These projects are located in the States of 
Arkansas, Missouri, Oklahoma and Texas. Southwestern's marketing area 
includes these states plus Kansas and Louisiana. Of the total, 22 
projects comprise an Integrated System and are interconnected through 
Southwestern's transmission system and exchange agreements with other 
utilities. The other two projects (Sam Rayburn and Robert Douglas 
Willis) are not interconnected with Southwestern's Integrated System. 
Instead, their power is marketed under separate contracts through which 
the two customers purchase the entire power output of the projects at 
the dams.
    Following Department of Energy Order Number RA 6120.2, the 
Administrator, Southwestern, prepared a 1994 Current Power Repayment 
Study (PRS) using existing system rate schedules. The Study shows the 
actual status of repayment through FY 1993 at $288,259,891 on a total 
investment of $971,634,103. The FY 1994 Revised PRS indicates the need 
for an increase in annual revenues of $726,051, or 0.8 percent, over 
and above the present annual revenues.
    As a matter of practice, Southwestern would defer an indicated rate 
adjustment that falls within Southwestern's plus-or-minus two percent 
rate adjustment threshold. The threshold, which was established in 
1987, was developed to add efficiency to the process of maintaining 
adequate rates and is consistent with cost recovery criteria within DOE 
Order Number RA 6120.2 regarding rate adjustment plans. The Integrated 
System's FY 1993 (last year's) PRS concluded that the annual revenues 
needed to be decreased by 1.1 percent. At that time, it was determined 
prudent to defer the decrease in accordance with the established 
threshold. As previously cited, the FY 1994 (this year's) PRS indicates 
that revenues would need to be increased by 0.8 percent, or $726,051 
per year. It once again seems prudent to defer a rate adjustment in 
accordance with Southwestern's rate adjustment threshold and reevaluate 
the ability of the existing rate to provide sufficient revenues to 
satisfy costs projected in the FY 1995 (next year's) PRS.
    On September 18, 1991, the current rate schedules for the 
Integrated System were confirmed and approved by the FERC on a final 
basis for a period that ends on September 30, 1994. In accordance with 
10 CFR 903.22(h) and 903.23(a), the Deputy Secretary may extend 
existing rates on an interim basis beyond the period specified by the 
FERC. As a result of the benefits obtained by a rate adjustment 
deferral and the Deputy Secretary's authority to extend a previously 
approved rate, Southwestern's Administrator is proposing to extend the 
current Integrated System rate schedules for the one-year period 
beginning October 1, 1994, and extending through September 30, 1995.
    Opportunity is presented for customers and interested parties to 
receive copies of the study data for the Integrated System. If you 
desire a copy of the Repayment Study Data Package for the Integrated 
System, please submit your request to: Mr. George Grisaffe, Assistant 
Administrator, Office of Administration and Rates, P.O. Box 1619, 
Tulsa, OK 74101, (918) 581-7419.
    Following review of the written comments, the Administrator will 
submit the rate extension proposal for the Integrated System to the 
Deputy Secretary of Energy for confirmation and approval.

    Issued in Tulsa, Oklahoma, this 6th day of June, 1994.

J. M. Shafer,
Administrator.
[FR Doc. 94-14438 Filed 6-13-94; 8:45 am]
BILLING CODE 6450-01-P