[Federal Register Volume 60, Number 107 (Monday, June 5, 1995)]
[Notices]
[Pages 29586-29587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13680]



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DEPARTMENT OF ENERGY
Western Area Power Administration


Stampede Division, Washoe Project--Proposed Nonfirm Power Rate

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Stampede Division, Washoe Project Nonfirm 
Energy Rate Adjustment.

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SUMMARY: The Western Area Power Administration (Western) is proposing a 
rate adjustment for nonfirm energy from the Stampede Division, Washoe 
Project (Stampede). Stampede is located in Sierra County, California. 
The power repayment study and other analyses indicate that the proposed 
ceiling rate for nonfirm energy provides sufficient revenue to pay all 
annual costs (including interest expense), plus repayment of required 
investment within the allowable time period. Details regarding the 
proposed rates are outlined in a rate brochure to be provided to all 
interested parties. Proposed rates for nonfirm energy are scheduled to 
become effective October 1, 1995.
    This notice provides for proposed floor and ceiling rates that are 
intended to ensure the maximum reasonable annual repayment of the 
Stampede power investment at marketable rates. The proposed formula for 
the floor rate will be no less than 85 percent of the then-effective 
non-time-differentiated rate as provided in Sierra Pacific Power 
Company's (SPPC) California Quarterly Short-Term Purchase Price 
Schedule for As-Available Purchases from Qualifying Facilities with 
Capacities of 100 kilowatts (kW) or Less (CSPP). This floor rate 
reflects the rate used to determine a value of an energy exchange 
account between Western and SPPC for the benefit of project-use 
facilities. The CSPP is filed with the California Public Utilities 
Commission (CPUC) on a semi-annual basis. The ceiling rate will be the 
rate determined by Western to be necessary to repay the Stampede power 
investment and annual expenses over the remaining repayment period of 
the power facilities.
    Under the proposed rate schedule, Western will conduct a bidding 
process for the Stampede nonfirm energy that is available after 
project-use loads have been met, giving priority to preference 
entities. The nonfirm Stampede energy will be sold to the highest 
bidder, provided that the bid price is between the proposed floor and 
ceiling rates.
    On June 7, 1991, the Federal Energy Regulatory Commission (FERC) 
approved the rate procedure for Stampede in Docket No. EF90-5161-000, 
which expires on September 30, 1995. FERC approved Rate Schedule SNF-3 
through September 30, 1994, 55 FERC P61,391. On September 14, 1994, the 
Deputy Secretary of Energy extended the rate schedule until September 
30, 1995 pursuant to Delegation Order No. 0204-108, 59 FR 488875. This 
rate procedure established an annual bidding process for the sale of 
Stampede nonfirm energy. The nonfirm energy would be sold to the entity 
offering the highest price, provided that the bid price is between the 
floor and ceiling rates established by Western. Since 1991, Western has 
not received a bid for Stampede energy that fully complied with the 
FERC-approved bidding procedure. As a result, Western has been able to 
market Stampede nonfirm energy only under short-term agreements. In 
addition, prior to 1994, Western could not provide Stampede power to 
project-use loads, as announced in the Federal Register (50 FR 21350) 
on May 23, 1985. To serve project-use loads and market Stampede nonfirm 
energy, Western negotiated an agreement in 1994 with SPPC that provides 
for an annual energy exchange account for Stampede energy. As members 
of the Western Systems Power Pool (WSPP), Western and SPPC agreed that 
SPPC would accept delivery of all energy generated by Stampede into its 
electrical system. The dollar value of the Stampede energy received by 
SPPC during any month will be credited into the Stampede Energy 
Exchange Account [[Page 29587]] (SEEA). Western can utilize the SEEA to 
benefit project use facilities, market Stampede nonfirm energy to 
preference entities over the SPPC transmission system at mutually 
agreed points of delivery, or sell a portion of the Stampede energy to 
SPPC. So long as there is a balance in the SEEA, Western may direct 
SPPC to do any combination of the above transactions in any month. The 
existing and proposed floor and ceiling rates for Stampede nonfirm 
energy are shown in the table below:

                                    Percentage Change in Nonfirm Energy Rate                                    
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                                              Existing                                                          
                                              rates as                                                   Percent
            Nonfirm energy rate               of July           Proposed rates October 1, 1995           change 
                                              1, 1994                                                           
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Floor rate (mills/kWh).....................      27.69  See formula...................................       N/A
Ceiling rate (mills/kWh)...................      67.39  72.307........................................         7
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Stampede is a power system which normally has annual sales less than 
100 million kWh and an installed capacity of less than 20,000 kilowatt; 
therefore, the proposed rates constitute a minor rate adjustment as 
defined by the procedures for public participation in rate adjustments, 
as cited below. Since this is a minor rate adjustment, no public 
meetings are scheduled; however, Western will accept comments from 
interested parties. After review of public comments, Western will 
recommend proposed rates for approval on an interim basis by the Deputy 
Secretary of the Department of Energy (DOE).

DATES: The consultation and comment period will begin with publication 
of this notice in the Federal Register and will end July 5, 1995.
    Written comments should be received by Western by the end of the 
consultation and comment period to be assured consideration and should 
be sent to the address below.

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

SUPPLEMENTARY INFORMATION: Nonfirm energy rates for Stampede 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.), and acts amendatory or supplementary to the foregoing acts, 
particularly section 9(c) of the Reclamation Project Act of 1939 (43 
U.S.C. 485h(c)) and the Act of August 1, 1956, 70 Stat. 775.
    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; and (3) the authority to confirm, 
approve, and place into effect on a final basis, to remand, or to 
disapprove such rates to FERC. Existing DOE procedures for public 
participation in rate adjustments (10 CFR Part 903) became effective on 
September 18, 1985.

Availability of Information

    The rate brochure, studies, comments, letters, memorandums, and 
other documents made or kept by Western for the purpose of developing 
the proposed rates for Stampede nonfirm energy are available for 
inspection and copying at Western's Sacramento Area Office, located at 
1825 Bell Street, Suite 105, Sacramento, CA 95825-1097.

Regulatory Flexibility Analysis

    Pursuant to the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et 
seq.), each agency, when required by 5 U.S.C. 553 to publish a proposed 
rule, is further required to prepare and make available for public 
comment an initial regulatory flexibility analysis to describe the 
impact of the proposed rule on small entities. In this instance, the 
initiation of the Stampede nonfirm energy rate adjustment is related to 
nonregulatory services provided by Western at a particular rate. Under 
5 U.S.C. 601(2), rules of particular applicability relating to rates or 
services are not considered rules within the meaning of the act. Since 
the nonfirm energy rates are of limited applicability, no flexibility 
analysis is required.

Determination Under Executive Order 12866

    DOE has determined that this is not a significant regulatory action 
because it does not meet the criteria of Executive Order 12866, 58 FR 
51735. Western has an exemption from centralized regulatory review 
under Executive Order 12866; accordingly, no clearance of this notice 
by the Office of Management and Budget is required.

Environmental Evaluation

    In compliance with the National Environmental Policy Act of 1969 
(NEPA), 42 U.S.C. 4321 et seq.; Council on Environmental Quality 
Regulations (40 CFR Parts 1500-1508); and DOE NEPA Regulations (10 CFR 
Part 1021), Western has determined that this action is categorically 
excluded from the preparation of an environmental assessment or an 
environmental impact statement. A categorical exclusion was issued on 
April 15, 1995.

    Issued in Golden, Colorado, May 10, 1995.
J.M. Shafer,
Administrator.
[FR Doc. 95-13680 Filed 6-2-95; 8:45 am]
BILLING CODE 6450-01-P