[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31952]


[Federal Register: December 28, 1994]


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DEPARTMENT OF ENERGY
Bonneville Power Administration


Intent To Revise Transmission Rates To Become Effective

October 1, 1995.
agency: Bonneville Power Administration (BPA), DOE.

action: Notice of Intent and Request for Comments.

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summary: BPA is developing transmission rates proposed to become 
effective October 1, 1995. At this time, BPA announces its intent to 
revise its rates.
    BPA expects to publish a notice of the proposed rates in the 
Federal Register in early 1995. That notice also will announce BPA's 
proposed schedule for formal hearings as specified in section 7(i) of 
the Pacific Northwest Electric Power Planning and Conservation Act 
(Northwest Power Act). A final schedule will be established by the 
Hearing Officer who presides over BPA's rate hearings. These hearing, 
and planned general public field hearings, will give interested persons 
an opportunity to present oral and written comments on the rate 
proposal. BPA File No.: TR-95. BPA requests that all comments and 
documents to become part of the Official Record compiled in the process 
of adjusting transmission rates contain the file number designation TR-
95.

addresses: Written comments should be submitted to the Manager, 
Corporate Communications, Bonneville Power Administration, P.O. Box 
12999, Portland, Oregon 97212.

for further information contact: Mr. Michael Hansen, Public Involvement 
and Information Specialist, at the address listed above, 503-230-4328, 
or call 1-800-622-4519. Information may also be obtained from:

Mr. Steve Hickok, Group Vice President, Sales and Customer Service, 
P.O. Box 3621, Portland, Oregon 97232, 503-230-5356.
Mr. George Eskridge, Manager, SE Sales and Customer Service District, 
1101 West River, Suite 250, Boise, Idaho 83702, 208-334-9137.
Mr. Ken Hustad, Manager, NE Sales and Customer Service District, 
Crescent Court, Suite 500, 707 Main, Spokane, Washington 99201, 509-
353-2518.
Ms. Ruth Bennett, Manager, SW Sales and Customer Service District, 703 
Broadway, Vancouver, Washington 98660, 206-418-8600.
Ms. Marg Nelson, Manager, NW Sales and Customer Service District, 201 
Queen Anne Avenue North, Suite 400, Seattle, Washington 98109-1030, 
206-553-4130.

Responsible Official: Mr. Geoff Moorman, Manager, Pricing, Marginal 
Cost, and Ratemaking, is the official responsible for the development 
of BPA's rates.

supplementary information: The Federal Columbia River Transmission 
System (FCRTS) is owned and operated by BPA, a Federal power marketing 
agency within the Department of Energy. The FCRTS encompasses 
approximately 80 percent of the capacity of the high-voltage electric 
transmission system within the Pacific Northwest. Electric power from 
Federal and non-Federal generating units is integrated and transmitted 
utilizing the FCRTS. Interregional transmission services to customers 
outside the Pacific Northwest also are provided by BPA.
    Current rates apply to four types of transmission service: (1) firm 
integration of utilities' remote resources; (2) firm interregional 
transactions; (3) nonfirm transactions between systems both within and 
outside the Pacific Northwest Region; and (4) firm transmission over 
specified facilities. Firm transmission generally is sold pursuant to 
contracts for periods up to 20 years. Firm transmission on BPA's 
network (main grid) is available on a mileage basis as well as a 
postage stamp rate structure.
    BPA began a Competitiveness Project in early 1993 in response to 
market forces and the deregulation of the electric utility industry. 
The project, a re-invention of the agency to make it more competitive 
in the new marketplace, included the development of a new business 
concept, a marketing plan, a structural reorganization, strategic 
action plans for each of BPA's major activities, an internal effort to 
promote leadership and employee empowerment, and proposals to eliminate 
unnecessary administrative and regulatory requirements.
    The rates that BPA charges its customers must produce revenues that 
are sufficient to repay, with interest, the Federal investment in 
generation, conservation, and transmission facilities. Revenues also 
must pay BPA's operation and maintenance expenses, purchased power 
costs, and other miscellaneous expenses. BPA also sets rates to recover 
a certain amount of net revenues. These planned net revenues, combined 
with BPA's existing financial reserves, are intended to mitigate 
financial risk to help assure BPA's ability to recover costs, including 
its timely repayment of the Federal investment.
    BPA develops a Revenue Requirement Study that set forth BPA's total 
costs of providing services to BPA's customers, including repayment of 
the Federal investment in the Federal Columbia River Power System. The 
revenue requirement calculation is a major input in determining the 
overall level of BPA's proposed rates for power and transmission.
    Program levels for FY 1996 and 1997 were developed outside of BPA's 
rate case, and as a part of the BPA draft Strategic Business Plan, with 
the benefit of a public comment process. BPA has reduced programs 
through a combination of cost cutting, program reinvention, and 
reductions in government and contractor employees. Program level 
decisions will not be an issue in the rate case. The Revenue 
Requirement Study will incorporate BPA's program level decisions and 
implement BPA's risk mitigation, capital funding, and other financial 
goals in 1996-1997 rates.
    In developing the 1995 transmission rate proposal, BPA plans to 
revise the level and changes of some of the existing transmission rate 
schedules and revise the General Transmission Rate Schedule Provisions 
as necessary. In light of BPA's business plan and continuing 
development of national energy policy, BPA plans to review its existing 
transmission rates and to implement appropriate changes, beginning with 
the 1995 rate case. In addition, BPA is considering new rate schedules 
to recover reservation fees and contributions in aid of construction, 
and will revise the rate for annual costs associated with non-Federal 
ownership rights on the Pacific Northwest AC Intertie to be consistent 
with the contracts for non-Federal ownership.
    BPA has prepared a draft environmental impact statement (EIS) 
addressing the alternatives and impacts of its proposed business 
direction, as expressed in its draft Strategic Business Plan. The draft 
EIS was released for public comment on June 1994, along with the draft 
Business Plan. The Business Plan EIS is designed to evaluate the 
proposed actions and the range of alternatives, including the impacts 
of the range of potential rate designs for BPA's power and transmission 
services. It also is intended to provide documentation of BPA's 1995 
rate proposal for the purposes of the National Environmental Policy 
Act. A second draft of the EIS will be available for public comment in 
late January.
    Following publication of the initial proposal in the Federal 
Register, formal public hearings and planned general public field 
hearings will be conducted by BPA. Written comments from individuals or 
entities other than parties to BPA's formal rate case also will be 
accepted through a date established by the Hearing Officer at the 
prehearing conference. Oral communications should be for the purpose of 
requesting either status reports or procedural information. After 
completion of an environmental process pursuant to the National 
Environmental Policy Act and following the hearings, BPA will announce 
its final proposed transmission rates and submit them to the Federal 
Energy Regulatory Commission for approval.

    Issued in Portland, Oregon, on December 12, 1994.
Randall W. Hardy,
Administrator and Chief Executive Officer.
[FR Doc. 94-31952 Filed 12-27-94; 8:45 am]
BILLING CODE 6450-01-M