[Federal Register Volume 59, Number 194 (Friday, October 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24925]


[[Page Unknown]]

[Federal Register: October 7, 1994]


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DEPARTMENT OF ENERGY
 

Boulder Canyon Project--Proposed Second Annual Rate Adjustment

AGENCY: Western Area Power Administration, Department of Energy.

ACTION: Notice to terminate the public process for the proposed Rate 
WAPA-58-2 and announce that the existing WAPA-58-1 rates will remain in 
place until Western Area Power Administration initiates a new annual 
rate filing in 1995.

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SUMMARY: Notice is given by Western Area Power Administration (Western) 
for termination of the public process for the proposed Rate WAPA-58-2 
for the Boulder Canyon Project (BCP) second annual rate adjustment. The 
termination of the public process for the proposed Rate WAPA-58-2 
leaves the existing WAPA-58-1 BCP power rate in effect until Western 
initiates a new annual rate filing in 1995.
    The public process for the proposed Rate WAPA-58-2 began with a 
Federal Register notice published on May 31, 1994 (59 FR 28075), 
announcing the second annual BCP proposed power rate adjustment. 
Western held a public information forum on June 15, 1994, and a public 
comment forum on July 8, 1994. At the request of the BCP contractors, 
Western re-evaluated the annual costs in the power repayment 
spreadsheet study for the ratesetting methodology period. As a result 
of this re-evaluation, Western made the decision to terminate the 
public process for the proposed Rate WAPA-58-2.
    The basis for Western's decision to terminate the public process 
for the proposed Rate WAPA-58-2 is as follows: (1) The BCP currently 
has a rate in effect that will satisfy fiscal year (FY) 1994 and FY 
1995 annual costs; and (2) Western believes it is in the final stage of 
negotiations with the BCP contractors and the Bureau of Reclamation 
(Reclamation) concerning an Implementation Agreement, which would 
provide for a revised methodology for establishing BCP power rates on 
an annual basis.
    Under the existing ratesetting methodology, which is the 
methodology used in the proposed Rate WAPA-58-2, the power rate is 
determined by the higher of (1) the 5-year-average rate for the cost 
evaluation period or (2) the rate in the first year of the cost 
evaluation period. The proposed Rate WAPA-58-2 was set by the 5-year-
average rate, which was the higher of these two determinants.
    When Western implements a BCP rate based on the 5-year-average 
rate, a revenue surplus at year-end is created. The revenue surplus 
would disappear under the revised methodology contained in the 
Implementation Agreement.
    Western's decision to terminate the public process for the proposed 
Rate WAPA-58-2 is consistent with the Stipulation Agreement which 
provides that (1) Western will undertake the appropriate filing(s) 
before the Federal Energy Regulatory Commission (FERC) to maintain the 
BCP rates at the FY 1994 (WAPA-58-1) level until September 30, 1995; 
(2) Reclamation and the BCP contractors agree that neither Reclamation 
nor any of the BCP contractors will protest the referenced filing by 
Western, and this Stipulation may be affixed to said filing as evidence 
of that agreement; (3) Western will withdraw the proposed WAPA-58-2 in 
accordance with 10 CFR 903.21(a)(1) and will proceed with the filing(s) 
as referenced above. Such withdrawal shall be without prejudice to any 
party with respect to the issues involved in the rate order and the 
parties will continue their efforts to resolve those issues; and (4) 
the parties will use their best efforts to finalize the negotiations of 
the Implementation Agreement by October 1, 1994.
    Western has consulted informally with FERC staff and is terminating 
the public process for Rate WAPA-58-2 with this Federal Register 
notice. Western will initiate another public process for the next 
annual rate in 1995.
    FERC approved the Rate Order No. WAPA-58 formula rate on November 
3, 1993. The ratesetting methodology approval period is through 
September 30, 1997. See FERC's decision at 65 FERC Par 61,186. The 
Administrator of Western confirmed and approved Rate WAPA-58-1. The 
existing WAPA-58-1 BCP composite power rate identified in Rate Schedule 
BCP-F4/2 is 12.62 mills per kilowatthour (mills/kWh) comprised of an 
energy charge of 6.31 mills/kWh and a capacity charge of $1.07 per 
kilowatt per month.

DATES: Rate WAPA-58-1 identified in Rate Schedule BCP-F4/2 became 
effective on February 1, 1994, and will remain in effect until 
superseded by the 1995 annual rate.

FOR FURTHER INFORMATION CONTACT: Mr. J. Tyler Carlson, Area Manager, 
Phoenix Area Office, Western Area Power Administration, P.O. Box 6457, 
Phoenix, AZ 85005-6457, (602) 352-2521.

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; (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 power rates to FERC.
    These power rates are established pursuant to the Department of 
Energy Organization Act (42 U.S.C. 7101 et seq.); 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)); the Colorado River Basin 
Project Act of 1968 (43 U.S.C. 1501 et seq.); the Colorado River 
Storage Project Act of 1956 (43 U.S.C. 620 et seq.); the Boulder Canyon 
Project Act of 1928 (43 U.S.C. 617 et seq.); the Boulder Canyon Project 
Adjustment Act of 1940 (43 U.S.C. 618 et seq.); the Hoover Power Plant 
Act of 1984 (43 U.S.C. 619 et seq.); the General Regulations for Power 
Generation, Operation, Maintenance, and Replacement at the Boulder 
Canyon Project, Arizona/Nevada (43 CFR part 431) published in the 
Federal Register at 51 FR 23960 on July 1, 1986; the General 
Regulations for the Charges for the Sale of Power from the Boulder 
Canyon Project, Final Rule (10 CFR part 904) published in the Federal 
Register at 51 FR 43124 on November 28, 1986; the procedures for public 
participation in rate adjustments for power and transmission service 
marketed by Western (10 CFR part 903) published in the Federal Register 
at 50 FR 37835 on September 18, 1985; and the Department of Energy 
financial reporting policies, procedures, and methodology (DOE RA 
6120.2 dated September 20, 1979).

    Issued in Golden, Colorado, September 22, 1994.
William H. Clagett,
Administrator.
[FR Doc. 94-24925 Filed 10-6-94; 8:45 am]
BILLING CODE 6450-01-P