[Federal Register Volume 60, Number 131 (Monday, July 10, 1995)]
[Notices]
[Pages 35556-35557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16820]



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DEPARTMENT OF ENERGY

Western Area Power Administration


Central Valley Project--Proposed Commercial Firm Power Rates

AGENCY: Western Area Power Administration, DOE.

ACTION: Notice of Proposed Central Valley Project Commercial Firm Power 
Rate Adjustment.

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SUMMARY: The Western Area Power Administration (Western) is proposing a 
rate adjustment for commercial firm power service (Proposed Rates) for 
the Central Valley Project (CVP), for the remaining period under the 
current Schedule for Rates for Commercial Firm-Power Service (Rate 
Schedule CV-F7). The power repayment study (PRS) and other analysis 
indicate that Western's commercial firm power rates need to be revised. 
At this time, only the commercial firm power rates are being adjusted. 
Other rate schedules approved as part of Western's Rate Order No. 59, 
and all other provisions under Rate Schedule CV-F7 will remain 
unchanged. A rate adjustment addressing all provisions of Rate Schedule 
CV-F7 will occur prior to its expiration on April 30, 1998.
    The Proposed Rates will continue to provide sufficient revenue to 
pay all annual costs (including interest expense), plus repayment of 
required investment within the allowable time period. The rate impacts 
are detailed in a rate brochure to be distributed to all interested 
parties. The Proposed Rates are scheduled to go into effect on October 
1, 1995.
    The Proposed Rates consist of base energy rates up to a 70-percent 
load factor, tier energy rates at or above a 70-percent load factor, 
and capacity rates.
    The Proposed Rates are designed to recover 40-percent of the 
revenue requirement from the capacity rate and 60-percent from the 
energy rate.
    A comparison of the current rates under Rate Schedule CV-F7, and 
the Proposed Rates for the same time period, show rate adjustments 
beginning on October 1, 1995; October 1, 1996; and October 1, 1997. The 
Proposed Rates and applicable revenue requirement split are provided in 
Table 1 below.

                                 Table 1.--Proposed Commercial Firm Power Rates                                 
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                                       Total                                                                    
        Effective period             composite    Capacity ($/kW-   Base energy     Tier energy      Capacity/  
                                    (mills/kWh)         mo)         (mills/kWh)     (mills/kWh)    energy split 
----------------------------------------------------------------------------------------------------------------
10/01/95 to 09/30/96............           24.00            4.89           13.35           26.05           40/60
10/01/96 to 09/30/97............           26.60            5.41           15.01           26.16           40/60
10/01/97 to 04/30/98............           27.00            5.50           15.26           26.26           40/60
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    The Tier Rate will be applied to commercial firm energy at 70- 
percent load factor and above, with the load factor based on the lesser 
of the customer's (1) maximum demand for the month or, if a scheduling 
customer, maximum scheduled demand for the month; or (2) contract rate 
of delivery for commercial firm power.
    The Assistant Secretary for Conservation and Renewable Energy of 
the Department of Energy (DOE), approved the existing rate schedules on 
an interim basis on April 12, 1993 (Rate Order No. WAPA-59, 58 FR 35933 
(July 2, 1993), and the Federal Energy Regulatory Commission (FERC) 
confirmed and approved the rate schedule on a final basis on September 
22, 1993, under FERC Docket No. EF93-5011-000, (64 FERC Part 61,332). 
The existing rate schedule was effective on May 1, 1993, for the period 
ending April 30, 1998. Under the current CVP Rate Schedule CV-F7, the 
composite rate on October 1, 1995, will be 31.55 mills per kilowatt-
hour (mills/kWh), the base energy rate will be 17.73 mills/kWh, the 
tier energy rate will be 34.70 mills/kWh, and the capacity rate will be 
$6.57 per kilowatt-month (kW-mo). Table 2 provides a comparison of the 
rates in the current CVP Rate Schedule CV-F7 and the Proposed Rates 
along with the percentage change in the rates:

                                                                                                                

[[Page 35557]]
                                                   Table 2.--Comparison of Current and Proposed Rates                                                   
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                                                    Percentage change in commercial firm power rates                                                    
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                                                   Total                                                                                                
              Effective period                   composite     Percent   Capacity ($/kW-  Percent     Base energy    Percent     Tier energy    Percent 
                                                (mills/kWh)     change         mo)         change     (mills/kWh)     change     (mills/kWh)     change 
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Current rate schedule:                                                                                                                                  
    10/01/95 to 09/30/97....................           31.55  .........            6.57  .........           17.73  .........           34.70           
    10/01/97 to 04/30/98....................           34.37  .........            7.16  .........           19.33  .........           37.46           
Proposed rates:                                                                                                                                         
    10/01/95 to 09/30/96....................           24.00        -24            4.89        -26           13.35        -25           26.05        -25
    10/01/96 to 09/30/97....................           26.60        -16            5.41        -18           15.01        -15           26.16        -25
    10/01/97 to 04/30/98....................           27.00        -21            5.50        -23           15.26        -21           26.26        -30
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Other Rate Provisions Associated With the Proposed CVP Power Rates

Power Factor Adjustment Clause

    This provision contained in CVP Rate Schedule CV-F7, will remain 
the same under the Proposed Rates.

Low Voltage Loss Adjustment

    This provision contained in CVP Rate Schedule CV-F7, will remain 
the same under the Proposed Rates.
Revenue Adjustment Clause

    The methodology for the Revenue Adjustment Clause (RAC) is being 
amended in a concurrent process.

DATES: The consultation and comment period will begin July 7, 1995, and 
will end not less than 30 days later, or August 11, 1995. Under the 
existing rate schedule, a rate increase will occur October 1, 1995. In 
an effort to avoid large rate fluctuations, and the resultant impact on 
customers, the Proposed Rate must be put in place on or before October 
1, 1995. To meet this deadline, the comment period has been shortened 
to 30 days in accordance with the regulations on Rate Adjustments found 
at 10 CFR 903.14.
    The proposed rates reflect roughly a 16% to 24% decrease from the 
commercial firm power rates in CVP Rate Schedule CV-F7. The recent 
change in the level of customers' purchases from Western, and the 
determination of the resulting rate impacts prevented Western from 
initiating this rate adjustment at an earlier date. Because of the 
limited scope of this rate adjustment, Western feels a 30 day comment 
period is appropriate and allows sufficient opportunity for input into 
the rate adjustment. A public information forum will be held on July 
26, 1995, beginning at 10 a.m. at the Red Lion Hotel, 2001 Point West 
Way, Sacramento, California, 95815. A public comment forum at which 
Western will receive oral and written comments will also be held on 
July 26, 1995, beginning at 1 p.m., at the same location. To be 
considered, written comments should be received by Western by close of 
business on August 11, 1995. This is the end of the consultation and 
comment period. Comments should be sent to the address below: James C. 
Feider, Area Manager, Sacramento Area Office, Western Area Power 
Administration, 1825 Bell Street, Suite 105, Sacramento, CA 95825-1097, 
(916) 649-4418.

FOR FURTHER INFORMATION CONTACT: Debbie Dietz, Director, Division of 
Rates, Studies, and Power Billing, Sacramento Area Office, Western Area 
Power Administration, 1825 Bell Street, Suite 105, Sacramento, CA 
95825-1097, (916) 649-4453.

SUPPLEMENTARY INFORMATION: Power and transmission rates for the CVP are 
established pursuant to the Department of Energy Organization Act (42 
U.S.C. 7101 et seq.) and the Reclamation Act of 1902 (43 U.S.C. 371 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)) and Acts of Congress approved August 26, 1937 (50 Stat. 
844, 850); August 12, 1955 (69 Stat. 719); and October 23, 1962 (76 
Stat. 1173, 1191), and Acts amendatory or supplementary thereof.
    By Amendment No. 3 to Delegation Order No. 0204-108, published 
November 10, 1993 (58 FR 59716), the Secretary of DOE 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 the FERC. Existing DOE procedures for public 
participation in power rate adjustments (10 CFR part 903) became 
effective on September 18, 1985 (50 FR 37835).

Availability of Information

    All brochures, studies, comments, letters, memoranda, or other 
documents made or kept by Western for the purpose of developing the 
Proposed Rates for commercial firm power, are and will be made 
available for inspection and copying at the Sacramento Area Office, 
located at 1825 Bell Street, Suite 105, Sacramento, California 95825.
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 Office of Management and Budget is required.

Environmental Evaluation

    In compliance with the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.); Council on Environmental Quality Regulations 
(40 CFR parts 1500 through 1508); and DOE NEPA Regulations (10 CFR part 
1021), Western conducts environmental evaluations of the CVP commercial 
firm power rate adjustment and develops the appropriate level of 
environmental documentation prior to the implementation of any rate 
adjustment.

    Issued at Golden, Colorado, June 22, 1995.
J.M. Shafer,
Administrator.
[FR Doc. 95-16820 Filed 7-7-95; 8:45 am]
BILLING CODE 6450-01-P