[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: 94-23641]


[[Page Unknown]]

[Federal Register: September 23, 1994]


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DEPARTMENT OF ENERGY
 

Sam Rayburn Dam Power Rate; Notice of Order Approving a Power 
Rate Increase on an Interim Basis

AGENCY: Department of Energy, Southwestern Power Administration.

ACTION: Notice of approving a power rate increase--Sam Rayburn Dam 
Project.

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SUMMARY: The Deputy Secretary acting under Amendment No. 3 to 
Delegation Order No. 0204-108, dated November 10, 1993, 58 FR 59717, 
has approved Rate Order No. SWPA-31 which increases the power rate for 
the Sam Rayburn Dam Project. This is an interim approval of the rate 
effective October 1, 1994, through September 30, 1998.

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.

SUPPLEMENTARY INFORMATION: The existing hydroelectric power rate for 
the Sam Rayburn Dam project is $2,076,444 per year. The rate was 
approved on a final basis by the Federal Energy Regulatory Commission 
on August 11, 1993, for a period ending September 30, 1997.
    On June 15, 1994, the Southwestern Power Administration 
(Southwestern) published notice in the Federal Register, 59 FR 30793 of 
its proposed rate increase for the Sam Rayburn Dam project and to 
provide for a 60-day comment period. One comment indicating no 
objection to the proposed rate increase was received from the sole 
customer, Sam Rayburn Dam Electric Cooperative.
    Following review of Southwestern's proposal within the Department 
of Energy, I approved, Rate Order No. SWPA-31, which increases the 
existing Sam Rayburn Dam Rate to $2,168,136 per year for the period 
October 1, 1994, through September 30, 1998.

    Issued at Washington, D.C., the 14th day of September 1994.
William H. White,
Deputy Secretary.

    In the matter of: Southwestern Power Administration--Sam Rayburn 
Dam Rate.

Rate Order, No. SWPA-31.

Order Approving Power Rate Increase on an Interim Basis

September 14, 1994.
    Pursuant to Sections 302(a) and 301(b) of the Department of Energy 
Organization Act, Public Law 95-91, the functions of the Secretary of 
the Interior and the Federal Power Commission under Section 5 of the 
Flood Control Act of 1944, 16 U.S.C. 825s, for the Southwestern Power 
Administration were transferred to and vested in the Secretary of 
Energy. By Delegation Order No. 0204-108, effective December 14, 1983, 
48 FR 55664, the Secretary of Energy delegated to the Deputy Secretary 
of Energy on a non-exclusive basis the authority to confirm, approve 
and place into effect on an interim basis power and transmission rates, 
and delegated to the Federal Energy Regulatory Commission (FERC) on an 
exclusive basis the authority to confirm, approve and place in effect 
on a final basis, or to disapprove power and transmission rates. 
Amendment No. 1 to Delegation Order No. 0204-108, effective May 30, 
1986, 51 FR 19744, revised the delegation of authority to confirm, 
approve and place into effect on an interim basis power and 
transmission rates by delegating such authority to the Under Secretary 
of Energy rather than the Deputy Secretary of Energy. This delegation 
was reassigned to the Deputy Secretary of Energy by Department of 
Energy (DOE) Notice 1110.29, dated October 27, 1988, and clarified by 
Secretary of Energy Notice SEN-10-89, dated August 3, 1989, and 
subsequent revisions. By Amendment No. 2 to Delegation Order No. 0204-
108, effective August 23, 1991, 56 FR 41835, the Secretary of the 
Department of Energy revised Delegation Order No. 0204-108 to delegate 
to the Assistant Secretary, Conservation and Renewable Energy, the 
authority which was previously delegated to the Deputy Secretary in 
that Delegation Order. By Amendment No. 3 to Delegation Order No. 0204-
108, effective November 10, 1993, 58 FR 59717, the Secretary of Energy 
revised the delegation of authority to confirm, approve and place into 
effect on an interim basis power and transmission rates by delegating 
that authority to the Deputy Secretary of Energy. This rate order is 
issued by the Deputy Secretary pursuant to said Amendment to Delegation 
Order No. 0204-108.

Background

    The Sam Rayburn Dam is located on the Angelina River in the State 
of Texas in the Neches River Basin. Since the beginning of its 
operation in 1965, it has been marketed under isolated project rates 
through a contract with the Sam Rayburn Dam Electric Cooperative, Inc., 
through the facilities of Gulf States Utilities Company. The contract 
originally provided for a rate of $79,167 per month ($950,004 
annually). Subsequently, this rate has been increased on numerous 
occasions.
    The existing annual Sam Rayburn Dam power rate of $2,076,444 was 
confirmed and approved on a final basis on August 11, 1993, by the FERC 
for the period April 1, 1993, through September 30, 1997.

Discussion

    The 1994 Power Repayment Studies (PRS) indicated the need for a 
major rate increase of approximately 4.4 percent. The primary cause of 
the FY 1994 increase over the currently-approved rate was a refinement 
in Corps operations and maintenance estimates to better reflect actual 
future expenditures.
    That 1994 rate increase proposal was communicated to the public 
through a 60-day public participation period cited in the Federal 
Register (59 FR 30793), informal meetings with the customer and a 
formal Public Information Forum held on July 7, 1994. No opposition was 
expressed. One comment was received on behalf of SRDEC, expressing no 
opposition to the proposed rate increase. Southwestern did not receive 
a request to convene a formal Public Comment Forum; consequently, the 
meeting was not convened.
    Southwestern completed the 1994 PRS for Sam Rayburn which indicates 
that an annual rate of $2,168,136 is needed, beginning October 1, 1994, 
to satisfy all repayment criteria. The rate represents an increase of 
4.4 percent over the existing rate.
    Information regarding this rate increase, including studies and 
other supporting material, is available for public review and comment 
in the offices of the Southwestern Power Administration, P.O. Box 1619, 
Tulsa, Oklahoma 74101.
Administrator's Certification
    The 1994 Revised Sam Rayburn Dam PRS indicates that the annual 
power rate of $2,168,136 will repay all costs of the project including 
amortization of the power investment consistent with provisions of DOE 
Order No. RA 6120.2. In accordance with Section 1 of Delegation Order 
No. 0204-108, as amended November 10, 1993, (58 FR 59717), and Section 
5 of the Flood Control Act of 1944, the Administrator has determined 
that the proposed Sam Rayburn Dam power rate is consistent with 
applicable law and is the lowest possible rate consistent with sound 
business principles.
Environment
    The environmental impact of the rate increase proposal was 
evaluated in consideration of DOE's guidelines for implementing the 
procedural provisions of the National Environmental Policy Act and was 
determined to fall within the class of actions that are categorically 
excluded from the requirements of preparing either an Environmental 
Impact Statement or an Environmental Assessment.

Order

    In view of the foregoing and pursuant to the authority delegated to 
me by the Secretary of Energy, I hereby increase on an interim basis, 
for the period October 1, 1994, through September 30, 1998, the annual 
Sam Rayburn Dam Rate to $2,168,136 for the sale of power and energy 
from Sam Rayburn Dam to the Sam Rayburn Dam Electric Cooperative, Inc., 
under Contract No. DE-PM75-92SW00215, dated October 7, 1992.

    Issued at Washington, DC, the 14th day of September 1994.
William H. White,
Deputy Secretary.
[FR Doc. 94-23641 Filed 9-22-94; 8:45 am]
BILLING CODE 6450-01-P