[Federal Register Volume 59, Number 114 (Wednesday, June 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14555]


[[Page Unknown]]

[Federal Register: June 15, 1994]


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DEPARTMENT OF ENERGY
Southwestern Power Administration

 

Sam Rayburn Dam Project and Robert D. Willis Hydropower Project

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Proposed Sam Rayburn Dam and Robert Douglas Willis 
power rates and opportunities for public review and comment.

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SUMMARY: The Administrator, Southwestern, has prepared Current and 
Revised 1994 Power Repayment Studies for the Sam Rayburn Dam (Rayburn) 
project and the Robert Douglas Willis (Willis) Hydropower project which 
indicate the need for rate adjustments at both projects to meet cost 
recovery criteria. These rate adjustments are needed primarily to 
recover estimated increases in Corps of Engineers' operation and 
maintenance expenses at the two hydropower projects. The proposed rate 
for Rayburn increases annual revenue requirements approximately 4.4 
percent from $2,076,444 to $2,168,136, beginning October 1, 1994. The 
proposed rate for the Willis project increases annual revenue 
requirements approximately 3.6 percent from $284,580 to $294,696, 
beginning October 1, 1994. The Administrator has developed proposed 
rate schedules for the Rayburn and Willis projects to recover the 
required revenues.

DATES: A Public Information Forum will be held July 7, 1994, in Tulsa, 
Oklahoma. A Public Comment Forum will be held August 1, 1994, in Tulsa, 
Oklahoma. Written comments are due on or before August 15, 1994. 
Revised rates for Sam Rayburn Dam and Robert D. Willis projects are 
calculated based on an October 1, 1994, implementation date. Therefore, 
to provide opportunities for public consultation and comment while also 
meeting the October 1, 1994, date for implementation, Southwestern is 
conducting a 60 day public notice and comment period (10 CFR 
903.14(d)). This public participation period is reduced since there is 
only a single customer for each project and those two customers 
directly impacted have been informed of the impending rate increases; 
any comments from the customers are expected to be developed well 
within the 60 day period; coordination, if needed, can be accomplished 
within that same period. In addition, Southwestern does not expect 
much, if any, interest in these proceedings from any other entity. 
[Note: The proposed rate change for the Willis project is classified as 
a minor rate adjustment and does not require any comment period to 
exceed 30 days (10 CFR 903.14).]

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

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy (DOE) was 
created by an Act of the U.S. Congress, Department of Energy 
Organization Act, Pub. L. 95-91, dated August 4, 1977, and 
Southwestern's power marketing activities were transferred from the 
Department of Interior to the DOE, effective October 1, 1977. 
Guidelines for preparation of power repayment studies are included in 
DOE Order No. RA 6120.2, Power Marketing Administration Financial 
Reporting. Procedures for Public Participation in Power and 
Transmission Rate Adjustments of the Power Marketing Administrations 
are found at Title 10, Part 903, Subpart A of the Code of Federal 
Regulations (10 CFR 903).
    Southwestern markets power from 24 multiple-purpose reservoir 
projects with power facilities constructed and operated by the U.S. 
Army Corps of Engineers (Corps). 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 the Integrated System and are generally 
interconnected through Southwestern's transmission system and exchange 
agreements with other utilities. The power produced by the remaining 
two hydroelectric generating projects, Rayburn and Willis, is marketed 
by Southwestern under separate contracts through which two customers 
purchase the entire power output at each of the two projects. The 
Rayburn project, located on the Angelina River within the Neches River 
Basin, in eastern Texas, consists of two hydroelectric generating units 
with a total capacity of 52.0 megawatts (MW). The Willis project is 
located on the Neches River downstream from the Rayburn project and has 
two hydroelectric generating units with a total capacity of 7.4 MW. The 
two customers, Sam Rayburn Dam Electric Cooperative, Inc. (SRDEC) and 
the Sam Rayburn Municipal Power Agency (SRMPA), currently receive the 
entire output of the Rayburn and Willis projects, respectively. In the 
case of Willis, SRMPA receives the entire electrical output of the 
project as a result of its non-federally funding the construction of 
the hydroelectric facilities at the project. SRDEC receives the entire 
electrical output of the Rayburn project through a contract that 
provides for an isolated rate. These projects are not currently 
interconnected with Southwestern's Integrated System. A separate power 
repayment study is prepared for each project and both have special 
rates based on their non-interconnected operations. Following DOE Order 
No. RA 6120.2 guidelines, the Administrator, Southwestern, prepared a 
Current Power Repayment Study for both the Rayburn and Willis projects 
using existing rates.
    Both Current Power Repayment Studies indicated that the legal 
requirement to repay the power-related costs, with interest, will not 
be met without additional revenue. This revenue need results primarily 
from increased annual operation and maintenance expenses projected by 
the Corps. The Revised Power Repayment Study for Rayburn shows that 
additional annual revenue of $91,692 (a 4.4 percent increase), 
beginning October 1, 1994, is needed to satisfy repayment criteria. 
This would increase revenues received from the Rayburn project customer 
(SRDEC) from the current $2,076,444 to $2,168,136 annually. The Revised 
Power Repayment Study for Willis shows that additional annual revenue 
of $10,116 (a 3.6 percent increase), would provide sufficient revenues 
for repayment of the projected expenses within the required period. 
This would increase revenues received from the Willis project customer 
(SRMPA) from the current $284,580 to $294,696 annually, beginning 
October 1, 1994.
    Opportunity is presented for customers and other interested parties 
to receive copies of the Rayburn and Willis studies and the proposed 
rate schedules. If you desire a copy of the Power Repayment Study Data 
Package for either or both projects, submit your request to Mr. George 
C. Grisaffe at the address cited above.
    A Public Information Forum will be held at 1 p.m., Thursday, July 
7, 1994, in Southwestern's offices, Room 1402, Williams Center Tower I, 
One West Third Street, Tulsa, Oklahoma, to explain to customers and 
interested parties the proposed rates and supporting studies. The Forum 
will be conducted by a chairman who will be responsible for orderly 
procedure. Questions concerning the rates, studies and information 
presented at the Forum may be submitted from interested persons and 
will be answered, to the extent possible, at the Forum. Questions not 
answered at the Forum will be answered in writing, except that 
questions involving voluminous data contained in Southwestern's records 
may best be answered by consultation and review of pertinent records at 
Southwestern's offices. Persons interested in attending the Public 
Information Forum should indicate in writing by Monday, July 4, 1994, 
their intent to appear at such Forum. Accordingly, if no one so 
indicates their intent to attend, no such Forum will be held.
    A Public Comment Forum will be held at 1 p.m., Monday, August 1, 
1994, at the same location established for the Public Information 
Forum. At the Public Comment Forum, interested persons may submit 
written comments or make oral presentations of their views and 
comments. This Forum will also be conducted by a chairman who will be 
responsible for orderly procedure. Southwestern's representatives will 
be present, and they and the chairman may ask questions of the 
speakers. Persons interested in attending or speaking at the Public 
Comment Forum should indicate in writing (use same address as used for 
submitting comments) by Wednesday, July 27, 1994, their intent to 
appear/speak at such Forum. Accordingly, if no one so indicates their 
intent to attend, no such Forum will be held. The chairman may allow 
others to speak if time permits.
    A transcript of each Forum will be made. Copies of the transcripts 
may be obtained from the transcribing service. Copies of all documents 
introduced will be available from Southwestern upon request, for a fee. 
Written comments on the proposed rates for either project are due on or 
before August 15, 1994. Written comments should be submitted to the 
Administrator, Southwestern Power Administration, U.S. Department of 
Energy, P.O. Box 1619, Tulsa, Oklahoma 74101.
    Following review of the oral and written comments and the 
information gathered in the course of the proceedings, the 
Administrator will submit the rate proposals, and Power Repayment 
Studies in support of the proposed rates, to the DOE Deputy Secretary 
for confirmation and approval on an interim basis, and to the Federal 
Energy Regulatory Commission (FERC) for confirmation and approval on a 
final basis. The FERC will allow the public an opportunity to provide 
written comments on the proposed rate increases before making a final 
decision.

    Issued in Tulsa, Oklahoma, this 9th day of June, 1994.
Dallas Cooper,
Acting Administrator.
[FR Doc. 94-14555 Filed 6-14-94; 8:45 am]
BILLING CODE 6450-01-P