[Federal Register Volume 60, Number 115 (Thursday, June 15, 1995)]
[Notices]
[Pages 31464-31465]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14709]



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DEPARTMENT OF ENERGY
Southwestern Power Administration


Integrated System

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of proposed extension of integrated system power rates 
and opportunities for public review and comment.

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SUMMARY: The Current Integrated System Rates were approved by the 
Federal Energy Regulatory Commission (FERC) on September 18, 1991, 
Docket [[Page 31465]] No. EF91-4011-000 (56 FERC para.61,398). These 
rates were effective October 1, 1990, through September 30, 1994. 
Effective October 1, 1994, these rates were extended on an interim 
basis by the Deputy Secretary of Energy, for one year ending September 
30, 1995 (59 FR 47860, Sept. 19, 1994). The Administrator, 
Southwestern, has prepared Current and Revised 1995 Power Repayment 
Studies for the Integrated System which show the need for a minor rate 
adjustment of $1,008,285 (1.07 percent increase) in annual revenues. In 
accordance with Southwestern's rate adjustment threshold, dated June 
23, 1987, the Administrator, Southwestern, may determine, on a case by 
case basis, that for a revenue decrease or increase in the magnitude of 
plus-or-minus two percent, deferral of a formal rate filing is in the 
best interest of the Government. Also, the Deputy Secretary of Energy 
has the authority to extend rates, previously confirmed and approved by 
FERC, on an interim basis, pursuant to 10 CFR 903.22(h) and 
903.23(a)(3). In accordance with DOE rate extension authority and 
Southwestern's rate adjustment threshold, the Administrator is 
proposing that the rate adjustment be deferred and that the current 
rates be extended for a one-year period effective through September 30, 
1996.

DATES: Written comments are due on or before June 30, 1995.

ADDRESSES: Written comments should be submitted to the Administrator, 
Southwestern Power Administration, U.S. Department of Energy, P.O. Box 
1619, Tulsa, Oklahoma 74101.

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, (918) 581-7419.

SUPPLEMENTARY INFORMATION: The U.S. Department of Energy was created by 
an Act of the U.S. Congress, Department of Energy Organization Act, 
P.L. 95-91, dated August 4, 1977, and Southwestern's power marketing 
activities were transferred from the Department of the Interior to the 
Department of Energy, effective October 1, 1977.
    Southwestern markets power from 24 multiple-purpose reservoir 
projects with power facilities constructed and operated by the U.S. 
Army Corps of Engineers. These projects are located in the States of 
Arkansas, Missouri, Oklahoma and Texas. Southwestern's marketing area 
includes these states plus Kansas and Louisiana. Of the total, 22 
projects comprise an Integrated System and are interconnected through 
Southwestern's transmission system and exchange agreements with other 
utilities. The other two projects (Sam Rayburn and Robert Douglas 
Willis) are not interconnected with Southwestern's Integrated System. 
Instead, their power is marketed under separate contracts through which 
two customers purchase the entire power output of each of the projects 
at the dams.
    Following Department of Energy Order Number RA 6120.2, the 
Administrator, Southwestern, prepared a 1995 Current Power Repayment 
Study (PRS) using existing Integrated System rate schedules. The PRS 
shows the actual status of repayment through FY 1994 at $319,846,125 on 
a total investment of $982,356,193. The FY 1995 Revised PRS indicates 
the need for an increase in annual revenues of $1,008,285, or 1.07 
percent, over and above the present annual revenues.
    As a matter of practice, Southwestern would defer an indicated rate 
adjustment that falls within Southwestern's plus-or-minus two percent 
rate adjustment threshold. The threshold, which was established in 
1987, was developed to add efficiency to the process of maintaining 
adequate rates and is consistent with cost recovery criteria within DOE 
Order Number RA 6120.2 regarding rate adjustment plans. The Integrated 
System's FY 1994 (last year's) PRS concluded that the annual revenues 
needed to be increased by 0.8 percent. At that time, it was determined 
prudent to defer the increase in accordance with the established 
threshold and extend the rates on an interim basis for one year. As 
previously cited, the FY 1995 (this year's) PRS indicates that revenues 
would need to be increased by 1.07 percent, or $1,008,285 per year. It 
once again seems prudent to defer a rate adjustment in accordance with 
Southwestern's rate adjustment threshold and reevaluate the ability of 
the existing rate to provide sufficient revenues to satisfy costs 
projected in the FY 1996 (next year's) PRS.
    On September 18, 1991, the current rate schedules for the 
Integrated System were confirmed and approved by the FERC on a final 
basis for a period that ended on September 30, 1994. In accordance with 
10 CFR 903.22(h) and 903.23(a)(3), the Deputy Secretary may extend 
existing rates on an interim basis beyond the period specified by the 
FERC. On September 19, 1994, the Deputy Secretary approved an extension 
of the Integrated System power rates on an interim basis for the period 
October 1, 1994, through September 30, 1995. As a result of the 
benefits obtained by a rate adjustment deferral (reduced Federal 
expense and rate stability) and the Deputy Secretary's authority to 
extend a previously approved rate, Southwestern's Administrator is 
proposing to again extend the current Integrated System rate schedules 
for the one-year period beginning October 1, 1995, and extending 
through September 30, 1996.
    Opportunity is presented for customers and interested parties to 
receive copies of the study data for the Integrated System. If you 
desire a copy of the Repayment Study Data Package for the Integrated 
System, please submit your request to: Mr. George Grisaffe, Assistant 
Administrator, Office of Administration and Rates, P.O. Box 1619, 
Tulsa, OK 74101, (918) 581-7419.
    Following review of the written comments, the Administrator will 
submit the rate extension proposal for the Integrated System to the 
Deputy Secretary of Energy for confirmation and approval.

    Issued in Tulsa, Oklahoma, this 5th day of June 1995.
Forrest E. Reeves,
Acting Administrator.
[FR Doc. 95-14709 Filed 6-14-95; 8:45 am]
BILLING CODE 6450-01-P