[Federal Register Volume 59, Number 184 (Friday, September 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23640]


[[Page Unknown]]

[Federal Register: September 23, 1994]


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DEPARTMENT OF ENERGY
Western Area Power Administration

 

Washoe Project--Notice of Order Confirming and Approving an 
Extension of the Nonfirm Energy Rate

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice is given of Rate Order No. WAPA-66 extending until 
September 30, 1995, Rate Schedule SNF-3 for the sale of nonfirm energy 
generated at the Stampede Powerplant (Stampede) of the Washoe Project 
(Washoe).

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FOR FURTHER INFORMATION CONTACT: Mr. James C. Feider, Area Manager, 
Western Area Power Administration, Sacramento Area Office, 1825 Bell 
Street, Suite 105, Sacramento, CA 95825-1097, (916) 649-4418.

SUPPLEMENTARY INFORMATION: 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 Area Power Administration (Western); (2) the authority to 
confirm, approve, and place such rates into effect on an interim basis 
to the Deputy Secretary of Energy; and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand, or to 
disapprove such rates to the Federal Energy Regulatory Commission 
(FERC). Existing Department of Energy procedures for public 
participation in power rate adjustments (10 CFR part 903) became 
effective on September 18, 1985 (50 FR 37835).
    Pursuant to Delegation Order No. 0204-108, FERC confirmed and 
approved Rate Schedule SNF-3 for the sale of nonfirm energy generated 
at Stampede. In an order issued June 7, 1991, in Docket No. EF90-5161-
000, the rate was approved for the 53-month period April 30, 1990, 
through September 30, 1994.
    This extension of the existing Washoe nonfirm energy rate until 
September 30, 1995, facilitates current measures being taken by Western 
in conjunction with the Bureau of Reclamation to service project-use 
loads. This extension also allows Western to examine the marketing 
options outside of the Sierra Pacific Power Company's control area and 
prepare the appropriate rate studies.
    The purpose of Rate Order No. WAPA-66 is to extend Rate Schedule 
SNF-3 until September 30, 1995, allowing Western the time to complete 
the activities listed in the previous paragraph.

    Issued in Washington, D.C., September 14, 1994.
Bill White,
Deputy Secretary.
    In the matter of: Western Area Power Administration, Rate 
Adjustment for Washoe Project. Rate Order No. WAPA-66.

Order Confirming and Approving an Extension of the Washoe Project 
Nonfirm Energy Rate

September 14, 1994.
    This power rate is established pursuant to section 302(a) of the 
Department of Energy (DOE) Organization Act, 42 U.S.C. 7152(a), through 
which the power marketing functions of the Secretary of the Interior 
and the Bureau of Reclamation (Reclamation) under the Reclamation Act 
of 1902, (32 Stat. 388 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 system involved, were transferred to and 
vested in the Secretary of Energy.
    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 the Western Area Power 
Administration (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 the 
Federal Energy Regulatory Commission (FERC). Existing DOE procedures 
for public participation in power rate adjustments (10 CFR part 903) 
became effective on September 18, 1985 (50 FR 37835).
    This rate extension is issued pursuant to the Delegation Order and 
the rate extension procedures in 10 CFR part 903.

Background

    Pursuant to Delegation Order No. 0204-108, FERC, in the order 
issued June 7, 1991, in Docket No. EF90-5161-000, confirmed and 
approved Rate Schedule SNF-3 for the sale of nonfirm energy generated 
at the Stampede Powerplant (Stampede) of the Washoe Project, as 
administered by Western's Sacramento Area Office (SAO). The rate was 
approved for the period from April 30, 1990, through September 30, 
1994.

Discussion

    As part of the Washoe Project, Reclamation constructed the 3.65-
megawatt Stampede Powerplant which is located in the Sierra Pacific 
Power Company (SPPC) service and load control area. The U.S. Fish and 
Wildlife Service (USFWS) loads at the Lahontan Fish Hatchery and the 
Marble Bluff Fish Facility were designated project use loads, and thus 
entitled the USFWS to the energy generated at Stampede on a 
nonreimbursable, first-priority basis. Since Stampede began operation 
in 1988, Western has been unable to service project use loads or to 
recover all related annual and capital costs of the powerplant due to 
limited market and transmission access and below-average 
hydrogeneration. As a result, Western has been exploring several 
marketing and transmission options to service project use and to 
improve the repayment status of the Washoe Project.
    The June 7, 1991, Rate Order (FERC Docket No. EF90-5161-000) 
established an annual bidding process for the sale of Stampede energy. 
The energy would be sold to the entity offering the highest price for 
the energy, provided that the bid price is between the floor and 
ceiling rates established by the SAO. The floor rate is based on the 
greater of either (a) the rate necessary to recover the projected 
annual operation and maintenance expenses for Stampede plus 2 mills per 
kilowatthour (mills/kWh) or (b) 85 percent of the purchaser's projected 
average marginal energy costs. The ceiling rate is the conventional 
repayment rate as determined by the power repayment study, which is 
currently 72.3 mills/kWh.
    The SAO first accepted bids in 1991 and continued the bidding 
process each year as required by the Rate Order (FERC Docket No. EF90-
5161-000). From June 1991 to June 1994, SAO did not receive any bids 
that fully comported with the bid requirements. SPPC submitted bids 
which were below the calculated floor rate. SPPC stated that the 
offered rates represented 85 percent of SPPC's average marginal costs. 
Since Stampede is directly interconnected to SPPC's system, there was 
no need for additional transmission agreements. Therefore, the Stampede 
energy has been sold to SPPC on a recurring short-term basis from July 
1, 1991, to the present time.
    On April 1, 1994, Western executed SAO Contract Number 94-SAO-00010 
with the SPPC, which provides Western the mechanism necessary to 
provide service to USFWS at the Lahontan National Fish Hatchery and 
Marble Bluff Fish Facility. The contract also provides Western the 
option to market all energy, in excess of that energy which is required 
to service USFWS loads, outside of the SPPC's control area.
    Since the mechanism is in place to serve project loads and transmit 
Stampede power outside the SPPC service area, Western needs additional 
time to evaluate the marketing options and effects of the contractual 
provisions on repayment of the Washoe Project. The extension of the 
current nonfirm energy rate is required to allow Western the time to 
complete its evaluation, develop a marketing program, prepare the 
appropriate rate studies, and conclude the public process.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby confirm and approve for a 
period effective October 1, 1994, until September 30, 1995, the 
existing Rate Schedule SNF-3 for the sale of nonfirm energy generated 
at the Stampede Powerplant of the Washoe Project.

    Issued in Washington, D.C., September 14, 1994.
Bill White,
Deputy Secretary.
[FR Doc. 94-23640 Filed 9-22-94; 8:45 am]
BILLING CODE 6450-01-P